- Median sales price falls
- Price per square foot lowest since December
- Demand softening
- Inventory remains low
The Menlo Park real estate market had a less frantic pace in September than we have seen most of this year. Some homes are sitting on the market longer while others, especially those in the lower end of their price band, are still getting multiple offers. With inventory constraining sales, we are seeing some buyers revisiting homes, with the thought that what they saw yesterday just may be the best property on the market today. Prices appear to be softening a little, although the sales price/list price ratio remained high.
September’s median sales price was $2,036,000, 12% or $289,000 lower than in August and 21% or $530,000 lower than a year ago. The price per square foot was down $63 (6%) from $1,128 in August to $1,065 in September, the lowest price this year. September was still 25% higher than a year ago ($850). The sales price to list price ration increased form 103% in August to 106% in September. That compares to 105% a year ago.
25 sales closed in September, down from 33 in August but on par with September 2014’s 22.
Note that in each of the past several months, pending sales and inventory numbers have been restated (pending sales downward and inventory upward) the following month, so we need to take some caution with the following data.
Current data shows inventory falling one unit in September to end the month with 33. That likely means inventory actually increased during September, which would be the first time that happened since May. One year ago, 52 homes were actively listed. 28 sales went pending during September, up from 24 in August. Once finalized, the data will likely show that sales were flat or slightly down. A 1.2 month supply relative to pending sales was on the market at the end of September.
While homes were on the market fewer days in September (22) than August (29), they were still listed longer than they have been most of this year. The 2015 average so far is 18 days.
Analysis by Price Range
Ten homes priced under $2 million were actively listed at the end of September, three less than at the end of August. Pending sales increased from eight in August to 14 in September. This segment accounted for 30% of Menlo Park’s inventory and 50% of its pending sales.
Homes priced from $2 million to $2,999,999 saw inventory increase and sales decline. Inventory increased from seven at the end of August to 11 at the end of September. Those 11 properties were a third of the total supply. Pending sales were cut from 13 in August to five in September, 18% of total sales.
The $3 million-plus segment made up 36% of the city’s inventory and 32% of pending sales. Inventory fell from 14 at the end of August to 12 at the end of September. Pending sales increased from three in August to nine in September.