Menlo park real estate

Menlo Park Market Conditions March 2015

  • Inventory cut more than 40% – 10 year low
  • Sales way up
  • Prices continue to rise
  • All market segments show strength

It’s hard to get too much hotter than the real estate market in Menlo Park in March. Pending sales more than doubled, inventory was slashed to a ten year low and prices increased. Demand is far outstripping supply and most homes that get listed sell quickly. Prices are feeling the pressure, with the average sales price exceeding the average list price by a wide margin.

March’s median sales price increased $195,000 or 9% from February to $2.4 million in March. That is the highest median price since September and the second highest here in at least ten years. Homes sold for 112% of the list price in March, which was also the highest ratio in Menlo Park in at least ten years. The price per square foot dipped in March, from $1,106 in February to $1,095.

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Closed sales increased five units in March, from 19 in February to 24 in March. One year ago, there were 26 closed sales.

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40 sales went to contract in March, more than double February’s 18. There were 26 pending sales in March 2014. Inventory fell 44%, from 34 at the end of February to 19 at the end of March. March’s 19 homes matched the ten year (at least) low set in December. Less than two weeks of inventory was available here at the end of March, compared to 1.9 months at the end of February and 2.1 months a year ago.

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March’s closed sales were on the market an average of 24 days, five more than in February but two less than in March 2014.

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Analysis by Price Range

If you’re looking to buy a home here priced under $1 million, that is getting increasingly difficult. Only one such home was actively listed at the end of March, down from five at the end of February. That represented only a four day supply. Seven sales went to contract in this segment during March, up from two in February. 5% of Menlo Park’s inventory and 18% of its pending sales were in this segment.

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Pending sales in the $1 million to $1,999,999 price range more than doubled, from eight in February to 17 in March. Inventory fell six units to nine at the end of March. That cut the supply to about two weeks at the end of March from 1.9 months at the end of February. This price range made up 47% of inventory and 43% of pending sales.

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The same trends occurred in the $2 million and up market segment. Pending sales doubled to 16 in March and inventory was cut by five units to end the month with 9. That represented at two week supply, down from 1.75 months at the end of February. 47% of inventory and 40% of sales were priced over $2 million.

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