- Lowest inventory in over ten years
- Pending sales take a dive
- Median sales price increases to near $2 million
- Price per square foot below year-ago level
Menlo Park has not seen inventory levels this low in over ten years. I looked back to November 2002 and could not find a month with this few homes on the market. Sales are being affected by the low inventories, as pending sales were at their lowest level of the year. Price indicators were mixed.
November’s median sales price was $1,997,500, an 11% increase ($190,000) from October’s $1,807,500. The median price was also $347,500 or 21% higher than a year ago when it was $1,650,000. The average price per square foot fell from $1,032 in October (the second highest value of the year) to $949 in November, an 8% decline. It was also lower than a year ago by 5% or $49. That was the first time since May of 2013 that the average price per square foot was lower than a year earlier. November’s sales closed for 106% of the list price, on average, up slightly from 105.35 in October but below last year’s 108%. This ratio has not been below 105% since December of 2013.
Closed sales dipped in November, from 26 in October to 20. That was still five more than closed a year ago.
Only 11 homes were actively listed at the end of November, the fewest in over ten years. November’s inventory was nine homes less than October’s 20 and was about a third of November 2013’s 30. Pending sales were cut by more than half, from 40 in October to 19 in November, the fewest sales this year. A year ago, there were also 19 pending sales during November. Inventory relative to pending sales actually increased a little, from 0.5 months at the end of October to 0.6 months at the end of November.
The number of days homes were on the market increased from 17 in October to 19 in November. That was three fewer days than November 2013’s 22.
Analysis by Price Range
Pending sales of homes priced under $1 million fell from seven in October to three in November. Six sales went pending a year ago. Inventory fell from three at the end of October to two at the end of November, compared to seven at the end of November 2013. A 0.7 month supply was on the market at the end of November, up from 0.4 months at the end of October. 18% of Menlo Park’s inventory and 16% of its pending sales were priced below $1 million.
The $1 million to $1,999,999 market segment took the biggest hit with regards to pending sales, falling from 19 in October to eight in November. That compares to 14 a year ago. Inventory fell by two units to four at the end of November. 0.5 months of inventory was available at the end of November, up from 0.3 months at the end of October. This price range accounted for 36% of inventory and 42% of pending sales.
Homes priced at $1 million and up saw big cuts in both inventory and pending sales in November. Inventory fell six units, from 11 at the end of October to five at the end of November. Six fewer sales went to contract in November (eight) than in October (14). Available supply fell from 0.8 months at the end of October to 0.6 months at the end of November. This segment had the largest share of both inventory (45%) and pending sales (42%).