- Prices soften
- Pending sales surprisingly buoyant
- Inventory way down
- Still a seller’s market
It remains a seller’s market for real estate in Menlo Park. Inventory is lower than it has been in a year, while demand is there, if somewhat uneven. Pending sales have been largely unchanged for three months in spite of the lack of inventory. Interestingly, even with strong demand and low inventory, sales prices softened in November. Homes still sold above list, on average, but the median sales price was below the level of a year earlier for the third straight month. Buyers remain active and are still willing to act aggressively for the right property. The pending Fed interest rate increase may be causing some uncertainty but does not appear to be having much effect on the market at this time.
November’s median sales price was $1,815,000, which was $15,000 higher than October’s but $182,500 (9%) lower than a year ago. November was the third straight month with a median sales price lower than the year before. Homes sold for 102% of the average list price in November, the lowest ratio since January. That compares to 109% in October and 106% in November 2014. The sale price per square foot also fell in November, from $1,106 in October to $1,077 in November, a 2.6% decrease. A year earlier, the price per square foot was $998.
After falling for three straight months, closed sales ticked up in November, from 22 in October to 24. November still had fewer sales than November 2014’s 31.
Inventory, which was already low, dropped sharply in November. 19 properties were actively listed at the end of November, a loss of 16 homes (45%) from October’s 35. 28 homes were on the market a year ago. 20 sales went to contract in November, one more than in October but five less than a year earlier. We had about a one month supply relative to pending sales at the end of November, down from 1.8 months at the end of October and 1.1 months at the end of November 2014.
The average sale in October was on the market for an average of 22 days, slightly more than October’s 19 days or November 2014’s 20 days. The average for this year so far is about 19 days.
Analysis by Price Range
The inventory of homes priced under $2 million fell from 10 at the end of October to six at the end of November. That was less than half the inventory of a year ago (13). Showing the strength of demand in this segment, nine sales went pending in November, only one less than in October. That cut the supply from one month at the end of October to 0.7 months at the end of November. 32% of Menlo Park’s inventory and 45% of pending sales were priced under $2 million.
Six sales of homes priced from $2 million to $2,999,999 went to contract during November, one less than in October. Those six sales were 30% of total sales. Inventory dropped from 10 at the end of October to four at the end of November, which was 21% of the total homes available. A 0.7 month supply was on the market at the end of November, compared to 1.4 months at the end of October.
The $3 million-plus market segment saw pending sales jump from two in October to five in November. Inventory went the other way, from 15 at the end of October to nine at the end of November. That cut the supply from 7.5 months at the end of October to 1.8 months at the end of November. This segment accounted for 47% of Menlo Park’s inventory but only 15% of pending sales.