Mountain View real estate

Mountain View Market Conditions February 2014

  • Low inventory keeping sales down
  • All price indicators move up
  • Days on market plunges to nine days

The extremely low level of inventory (we have had single digit number for four straight months) is putting a damper on sales. Only 12 sales went into contract in February, about half the number from a year ago. The median sales price, price per square foot and sales price/list price ration all increased in February.

The median sales price in February was $1,603,000, a 37% increase from $1,170,000 in January and a 35% increase from $1,188,000 a year ago. I caution against putting too much into the increase, given the low level of sales involved (17 and 10 closed sales in February and January respectively). With a small sample size, the median price can move erratically from month to month. Even so, the median sales price has been higher than the same month a year ago for 18 straight months. The average price per square foot was $872 in February, putting it back near December’s level after dropping to $742 in January. The average was $852 a year ago. The average sale in February was for 113% of the list price, the highest level in at least three years and probably a lot longer.

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17 sales closed in February, seven more than January’s 10. That was still less than the 23 that closed a year ago. With very low inventory and pending sales, I would not expect to see closed sales increase greatly in the short term.

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12 sales went into contract in February, down from 16 in January and 21 a year ago. Inventory remained in the single digits for the fourth straight month, ending February with only six active listings. That compares to five at the end of January and 17 a year ago. About five days of inventory relative to sales that went pending was on the market at the end of February, down from about a week at the end of January.

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February’s closed sales were on the market an average of only nine days, compared to 69 days for January’s sales. Again, the low sales totals can add a great deal of volatility to these numbers.

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Analysis by Price Range

Homes priced under $1 million accounted for about a third of Mountain View’s inventory at the end of January but 50% of the sales that went into contract during January. Only two homes were actively listed in this segment at the end of January, up from one at the end of January. Six sales went pending in February, one more than in January. That left about 10 days of inventory at the end of February relative to sales that went pending, compared to about six days at the end of January.

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One third of the sales that went into contract in February in Mountain View were priced from $1 million to $1.49 million, while none of the city’s inventory was in this segment. Four sales went pending in February, three less than in January. There were no active listings in this price range at the end of February and only one the prior month.

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Four homes priced at $1.5 million and up were actively listed at the end of February, accounting for 67% of Mountain View’s total inventory. Two sales went pending in this segment during January, representing 17% of Mountain View’s total. 2.0 months of inventory was available in this segment at the end of February, up from about three weeks at the end of January.

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