- Prices rebound
- Sales remain high
- Inventory remains low
- Days on market lowest in 18 months
So much for slowing down. Last month, it appeared that the Palo Alto real estate market was slowing down after a red hot summer. But it was apparently just catching its breath because prices shot back up in August (116% of list, on average) and homes were on the market for only 11 days, on average. Sales have been fairly constant the past few months, while inventory remained low.
The median sales price in August was $2.6 million, off slightly ($2,500) from July but other indicators rose. The average sale in August was for 117% of the list price, the highest ratio since March. Homes sold for an average of 110% of list in July and 112% a year ago. The price per square foot was $1,561, up from %1,513 in July and $1,376 in August 2014.
33 sales closed in August, one less than in July. The average for the past six months was 34. 33 sales also closed in August of 2014.
Note that in each of the past several months, pending sales and inventory numbers have been restated (pending sales downward and inventory upward) the following month, so we need to take some caution with the following data. As of press time, 39 properties were shown as actively listed at the end of August, down from 53 at the end of July. 37 sales went pending in August, two more than in July. August’s inventory represented a one month supply relative to ending sales.
August’s sales were eon the market an average of 11 days, down from 20 in July. 11 days is the shortest period homes have been listed since March 2014.
Analysis by Price Range
The market for homes priced under $2 million saw declines in both inventory and sales in August. Inventory dropped from 13 at the end of July to eight at the end of August. Pending sales fell by three, from 12 in July to nine in August. This segment accounted for 21% of Palo Alto’s inventory at the end of August and 24% of pending sales during the month.
In the $2 million to $2,999,999 price range, inventory fell from 25 units at the end of July to 17 at the end of August. Pending sales increased to 21, a 50% jump from July’s 14. 44% of inventory and 57% of pending sales were in this price range.
There was not a lot of change in the $3 million to $4,999,999 price range. Ten homes were actively listed at the end of August, one less than at the end of July. Six sales went to contract during August, one more than in July. 26% of Palo Alto’s inventory and 16% of its pending sales were in this segment.
10% of Palo Alto’s inventory and 3% of its pending sales were priced at $5 million and up. Four homes were for sales in this segment, unchanged from July. One sale went to contract during August, down three form July.