- Pending sales steady
- Inventory up again
- Prices steady
- $2 million – $3 million sales high
- $5 million plus inventory very high
It was an interesting month in Palo Alto in April. In general, sales were up a little while inventory increased 29%. Prices were steady and, on average, homes were not on the market long. However, there was something else happening behind the numbers. Quality homes, priced aggressively, saw a great deal of activity and multiple offers and, therefore sold quickly. Homes that were not priced as aggressively but still around where they “should be” often stayed on the market longer. They may have gotten many lookers but not as many offers.
April’s median sales price was $2,690,000, 2.5% ($66,000) lower than in March but 1.2% higher than a year ago. April was the first time in four month’s that the median sales price was higher than it was a year earlier. On average, homes sold for 105% of the list price in April, a little lower than March’s 106% and well below April 2015’s 115%. The price per square foot came down a little from March’s record high of $1,712 to $1,633. That was still $108 higher than a year ago.
Even though pending sales jumped in March, closed sales actually declined, from 34 during March to 31 in April. 40 sales closed in April 2015.
Inventory jumped 29% in April, from 80 at the end of March to 103. That was also 43% more homes for sale than a year ago. Pending sales increased only a little, from 37 in March to 40 in April. 40 sales also went pending in April 2015. Supply relative to pending sales increased from 2.2 months at the end of March to 2.7 months at the end of April. That compares to a 1.8 month supply a year ago.
Properties were on the market an average of 24 days in April, up from 16 in March and 15 in April 2015.
Analysis by Price Range
The inventory of homes priced under $2 million increased by seven units in April to end the month at 19. Pending sales increased by two units in April, from six in March to eight. That left a 2.4 month supply on the market at the end of April, up from 2.0 months at the end of March. 18% of Palo Alto’s inventory and 20% of its pending sales were priced below $2 million.
The $2 million to $2,999,999 price range had the most inventory and saw the most activity in April. 41% of all homes for sale were in this segment at the end of April, along with 50% of all pending sales during the month. 22 sales went to contract during April, three more than in March. Inventory increased from 36 at the end of March to 42 at the end of April. We had a 1.9 month supply of these homes at the end of April, little changed from March.
While the inventory of homes priced from $3 million the $4,999,999 increased in April, pending sales actually fell. Six sales went to contract during April, four less than in May. Inventory increased by five properties to end April with 23 homes for sale. A 3.8 month supply of these homes was available at the end of April, up from 1.8 months at the end of March.
19 homes were actively listed in this segment at the end of April, the most in at least six years. April’s 19 properties for sale were 18% of the city’s total. Four sales went pending in April, two more than in March and the most since July 2015. 10% of Palo Alto’s sales were of $5 million-plus homes. April ended with a 4.75 month supply of these homes, down from 7.0 months at the end of March.