- Can’t get much hotter than this!
- Pending sales surge
- Inventory plummets
- Price per square foot at all-time high
- Biggest sales gains in upper end
I don’t know how the Menlo Park real estate market can get any hotter. Demand is extremely strong and inventory can’t keep up. More homes came on the market in April but buyers were ready and they pushed sales higher and inventory lower in May. Prices rose in May, after dipping a little in April. With homes selling for more than 110% of their list price, it is a very competitive market place for buyers and a great time to be selling.
April’s median sales price was $2,001,500, a 4% gain from $1,927,500 in April and a 7% increase from May 2014’s $1,875,000. The price per square foot set a new all-time high in May at $1,184, up $92 from $1,092 in April and $258 from $926 a year ago. May’s average sale was for 111% of the list price, up from 110% in April and 108% a year ago.
Closed sales increased from 28 in April to 34 in May, a trend that will likely continue, given the big jump in pending sales in May.
58 sales went to contract in May, more than double April’s 28 and nearly double the level of a year ago (31). The recent surge in sales and a dearth of sellers resulted in inventory falling from 51 homes at the end of April to 32 at the end of May. That was less than half the number on the market a year ago (75). May ended with about a two week supply, a big drop from 1.8 months at the end of April.
The average time on the market was 38 days in May, little changed form 32 days in April.
Analysis by Price Range
Seven sales of homes priced under $1 million went pending in May, three more than in April. Inventory fell by one unit to three at the end of May. That resulted in inventory relative to sales being cut from 1.0 month at the end of April to 0.4 months at the end of May. 9% of Menlo Park’s inventory and 12% of its pending sales were in this segment.
Sales of homes priced from $1 million to $1,999,999 jumped from 17 in April to 28 in May (48% of the total). Inventory, meanwhile was cut by more than half, from 23 at the end of April to 11 at the end of May (34% of the total). Inventory relative to sales fell by nearly a month, from 1.35 months at the end of April to 0.4 months at the end of May.
Homes priced at or above $2 million continue to account for an increasing share of both inventory and sales here. 56% of Menlo Park’s inventory and 40% of its pending sales were in this segment. Two years ago, the mix was 40% and 25%. 18 homes were actively listed at the end of May, down from 24 at the end of April. Pending sales more than tripled, from seven in April to 23 in May. A 0.8 month supply was on the market at the end of May, compared to 3.3 months at the end of April.