- Pending and closed sales spike
- Inventory falls
- Prices remain firm
- Low end still driving the market
- But other segments are also strong
Buyers moved into the market in a big way in Menlo Park in March. Demand was very strong across market segments, with both closed and pending sales more than doubling from February. Inventory couldn’t keep up with demand and actually fell during March. Price indicators were favorable for the second straight month, another good indication that the market is on very solid footing after softening during the winter. For the second straight month, homes were on the market less than 20 days, a mark that is generally considered to indicate a hot market.
March’s median sales price was $2,425,000, slightly higher than February’s $2,420,000. March was also $25,000 higher than a year ago. The price per square foot fell from February’s record high of $1,317 to $1,134. March’s price per square foot was the highest since June if we ignore February and was 3% higher than March 2015. Homes that sold in March received 107% of their asking price, compared to 110% in February and 112% a year ago.
28 sales closed during March, double February’s 14. That was the most closed sales since August and was four more than in March 2015.
33 sales went to contract during March, more than double February’s 15. That was the most pending sales since July and was 10 more than a year ago. Inventory could not keep up with the demand and actually fell from 44 units at the end of February to 40 at the end of March. March’s inventory was one less than March 2015’s 41 homes. Supply was cut from 2.9 months at the end of February to 1.2 months at the end of March. That compares to a 1.8 month supply a year earlier.
For the second straight month, homes were on the market for less than 20 days. March’s closed sales were listed for an average of 19 days. While that was up from 13 days in February, it was still below the threshold of 20 days generally considered to indicate a hot market. March 2015’s sales were on the market an average of 24 days.
Analysis by Price Range
The sub $2 million market segment was very hot in March. 17 sales went pending during March; more than double February’s eight. Inventory fell from 19 homes at the end of February to 17 at the end of March. That left a one month supply at the end of March, down from 2.4 months at the end of February. 45% of Menlo Park’s inventory and 52% of its pending sales were priced below $2 million.
The inventory of homes priced from $2 million to $2,999,999 was unchanged at 13, accounting for a third of all inventory in Menlo Park. Pending sales tripled, from three in February to nine in March. Those nine were 27% of all sales. A1.4 month supply was available at the end of March, down from 4.3 months at the end of February.
Properties priced at or above $3 million accounted for 25% of inventory and 21% of pending sales. Inventory fell by two units to end March with 10 homes on the market. Pending sales increased by three to seven during March. Supply relative to sales was cut from 3.0 months at the end of February to 1.4 months at the end of March.