- Market extremely tight – and extremely hot
- Inventory cut in half
- Pending sales nearly double
- Highest median sales price ever – 2nd straight month
- Upper end of the market led the market in sales gains
The Mountain View real estate market just keeps getting hotter and hotter and for the second straight month, the median sales price set a new record. Inventory was cut in half during May and pending sales nearly doubled, cutting the supply available for sale to just nine days. The demand here is stronger than ever and there are just not enough sellers. That was particularly true for homes priced over $1.5 million.
The median sales price in April was $1,860,000, up $25,000 from $1,835,000 in May. May’s median sales price was 35% ($485,000) higher than a year ago. The price per square foot also set a new record at $1,100, $44 higher than in April and $77 higher than a year ago. May was the second consecutive month that the price per square foot was over $1,000. Another reflection of demand is the fact that the average sale in May was for nearly 116% of the list price. The ratio was 115% in April, as well as in May 2014.
Closed sales increased by four homes in May, following recent increases in pending sales. 18 sales closed a year ago.
48 sales went to contract in May, nearly double April’s 25 and 30 more than May 2014’s 18. Inventory was cut in half, from 31 at the end of April to 15 at the end of May. May’s 15 homes for sale was the fewest here in at least a decade. The changes cut inventory relative to pending sales from 1.2 months at the end of April to 0.3 months (about nine days) at the end of May.
Homes were on the market an average of 40 days in May, down from 49 in April.
Analysis by Price Range
As prices have continued to rise, the sub-$1 million market segment has accounted for a smaller and smaller share of the market. 7% of Mountain View’s inventory at the end of May and 4% of its pending sales during the month were priced below $1 million. By comparison, this segment accounted for 22% of both inventory and sales a year ago. Only one property was actively listed in this segment at the end of May. By comparison, nine homes were available a year ago. Two sales went pending in May, compared to three in April and four a year ago. There was about a two week supply at the end of May, down from 0.7 months at the end of April.
Five properties were for sale in the $1 million to $1,499,999 price range at the end of May, unchanged from April. 11 sales went to contract during May, four more than in April. Supply slipped from 0.7 months at the end of April to 0.4 months at the end of May. This price range made up a third of Mountain View’s inventory and 22% of its pending sales.
AS the lower end of the market has shrunk, the upper end has grown. Homes priced over $1.5 million accounted for 60% of inventory and 73% of pending sales. Those numbers were 25% and 31%, respectively, a year ago. 35 sales went pending in this segment in May, 20 more than in April. Inventory was cut from 24 at the end of April to nine at the end of May. That represented a one week supply, down from 1.6 months at the end of April.