- Sales spike again – $2 million to $3 million lead surge
- Inventory falls
- Price indicators mixed but prices still very strong
- Homes on market two weeks
Pending sales spiked for the third straight month in Palo Alto in April. Not enough sellers moved in to fill the void, so inventory fell. Price indicators were mixed but homes were still selling for more than 115% of their list price and were staying on the market an average of only two weeks.
April’s median sales price was $2,675,500, 1% or $24,000 higher than March’s $2,633,500. April’s price was 16% higher than a year ago. The price per square foot fell nearly 10% from March’s $1,688 to $1,525 in April. On average, sales in April closed for 115% of their list price, down from 118% in March and 116% a year ago. That ratio has been over 110% of 15 of the past 16 months.
Closed sales increased for the third straight month, following the surge in pending sales. 40 sales closed during April, eight more than in March but six less than in April 2014.
52 sales went pending in April, a 67% increase from 31 in March and a 16% increase from a year ago. Inventory fell by 11 units in April to end the month with 51. That was 28 (35%) fewer homes for sale than in April 2014. Inventory relative to pending sales was cut in half, from 2.0 months at the end of March to 1.0 month at the end of April. There was a 1.8 month supply a year earlier.
April’s closed sales were on the market an average of 15 days, down from 16 in March. April was the third consecutive monthly decline.
Analysis by Price Range
25% of Palo Alto’s homes for sale at the end of April and 31% of the sales that went pending during the month were priced below $2 million. 13 of these homes were actively listed at the end of April, down from 19 at the end of March. 16 sales went to contract in April, two more than in March. Inventory relative to sales dropped from 1.4 months at the end of March to 0.8 months at the end of April.
The $2 million to $3 million price range was where the action was in April, with 23 sales going pending. That is nearly triple the eight sales in March and a year ago. Those 23 pending sales represented 44% of Paolo Alto’s total. Inventory fell by three units to tend the moth with 17, 33% of the city’s total. A 0.7 month supply was on the market at the end of April, down from 2.6 months a t the end of March.
Nine homes priced from $3 million to $4,999,999 were available at the end of April, unchanged from March (as well as February). Pending sales of these homes fell by a third to six during March. That left a 1.5 month supply at the end of April, up from 1.0 month at the end of March. 17% of Palo Alto’s inventory and 12% of its pending sales were in this price range.
Seven sales of homes priced at $5 million-plus went to contract in April, the most in at least five years. There were none in March. 12 properties were actively listed in this segment at the end of April, down one from March. That represented a 1.7 month supply. This segment accounted for 24% of the city’s inventory and 14% of pending sales.