- Inventory finally increases some
- Demand still very strong
- Homes sold for over 115% of list in January, highest in over a decade
- Other price indicators down
- Lowest closed sales six years
The inventory of available homes for sale in Mountain View may have increased in January but demand remained at least as strong, continuing to put upward pressure on prices. January’s sales were for more than 115% of the average list price, the most in over ten years. The low inventory has restricted sales. In fact, closed sales in January were at their lowest level in six years and pending sales, while increasing slightly in January, were still very low. Homes priced in the mid-range of the market ($1 million to $1.5 million) lead the market with increases in inventory and pending sales.
The median sales price fell 1.4% in January, from $1,414,500 in December to $1,394,000 in January. January’s price was still 19% or $224,000 higher than a year ago. The average price per square foot fell nearly 10% ($102) in January. January’s price per square foot was $935, compared to $1,037 in December. The price per square foot one year earlier was $742.
The one price indicator that increased in January was the sales price to list price ratio, which went form 111.5% in December to 115.2% in January. A year ago the ratio was 108%. January was the highest ratio in at least ten years.
Six sales closed in January, the fewest sales since there were four in February 2009. 11 sales closed in December and 10 closed a year ago.
Inventory doubled in January, from a very low five homes at the end of December to 10 at the end of January. Five properties were available one year earlier. Pending sales increased by three, from eight in December to 11 in January. That was still well below January 2014’s 16 sales and the average for 2014 (19). A 0.9 month supply (relative to pending sales) was on the market at the end of January, up from 0.6 months at the end of December.
The number of days on the market fell from 19 in December to 11 in January. One year ago, homes were listed for an average of 84 days, which was and extremely abnormally high number in the past three years.
Analysis by Price Range
January ended with one home actively listed for less than $1 million, the first time in three months there has been any inventory in this segment at the end of a month. Two sales went to contract in January, one more than in December but three less than a year ago. 10% of Mountain View’s inventory and 18% of its pending sales were priced under $1 million. A two week supply was on the market at the end of January.
The $1 million to $1,499,999 saw most of the action in January, with both inventory and pending sales increasing. Four sales were actively listed in this segment at the end of January, compared to one at the end of both December and January 2014. Eight sales went pending during January, double December’s sales and even one more than a year ago. This price range made up 40% of Mountain View’s inventory at the end of January and 73% of its pending sales during the month. Inventory relative to pending sales doubled from about one week to two weeks.
One sale went pending during January in the $1.5 million market segment, down from three in December and four a year ago. Inventory increased by one unit to end January with five. That was half of Mountain View’s inventory and 9% of pending sales. January ended with a five month supply in this segment, up from 2.3 months at the end of December.