Mountain View Market Update January 2014
I don’t know if there have been less than two homes for sales in Mountain View since it was founded. I do know that there has not been less in at least 11 years. That was the number of actively listed homes here at the end of December. The number of sales that went into contract, while falling recently has remained remarkably strong, demonstrating the high level of demand. What’s interesting is that homes have stayed on the market longer in recent months. Some highlights of the current market include:
– Inventory at all-time low
– Median sales prices up and down through 2013 but higher than year ago levels
– 2013 sales prices were 109% of list price, on average
– The number of days homes were on the market has been trending up recently (69 days for January’s closed sales)
The chart below shows the relationship between inventory and the number of sales that went into contract. January’s five homes actively listed would have been a possible all-time low, were it not for December’s two homes. 15 and 16 sales went pending during December and January, respectively, a surprisingly high number given the available inventory. By comparison there were eight and 15 sales in December 2012 and January 2013, respectively, even though there was more than twice the number of homes on the market.
Despite the low inventory and high demand, the number of days homes have been on the market has spike recently, as can be seen in the chart below. January’s closed sales were listed for an average of 69 days, up from 58 in December and 24 in November. The average for 2013 was 21 days. Even though inventory was so low and demand so high, the number of months of inventory did not change much, averaging 1.7 months in 2013 and 1.6 months in 2012.
The median sales price was pretty volatile here the past year, rising and falling month to month. The median sales price has consistently remained above the level of the previous year, however since August 2012. January’s median sales price was $$1,170,000, $302,500 lower than in December but $46,050 higher than in January 2013.
The average sale during 2013 was for about 109% of the list price, higher than 2012’s 105%. Janaury’s sales were for 108% of the average list price. The average price per square foot, like the median sales price was somewhat volatile in 2013 but has remained above the level of the previous year for the past 17 months. January’s average price per square foot was $742, $129 lower than December’s $871 but $61 higher than January 2013’s $681.
Price Range Analysis
There was only one home actively listed at the end of January priced under $1 million, compared to two at the end of December and six at the end of January 2013. On average, only seven homes were available in this segment during 2013. Sales, while falling have remained strong, with five going pending in January and six in December. There were six during January 2013. This market segment accounted for 20% of Mountain View’s inventory at the end of January and 31% of the sales that went pending during the month.
Demand was the strongest for homes priced from $1 million to $1.499 million. As can be seen below there were consistently more sales than ending inventory. In fact, there were no actively listed properties at the end of either November or December. This price range accounted for 20% of Mountain View’s inventory at the end of January and 44% of sales that went pending.
$1.5 million-plus homes made up 25% of Mountain View’s sales that went into contract in January and 60% of its inventory at the end of the month. Inventory hit a low of zero actively listed properties at the end of December before bouncing back to three at the end of January. Four sales went pending during January, the same as in December.