- Pending sales triple
- Inventory flat
- Closed sales up
- Prices still strong – price per square foot at all-time high
Supply just can’t keep up with demand in Palo Alto. The fact that inventory was flat while pending sales tripled is a very strong indication of the insatiable demand here. The result has been increasing prices. The price per square foot was at an all-time high in February and sales closed for 113% of the average list price. Homes priced under $3 million are feeling the pressure the most.
February’s median sales price was $2,520,000 in February, off $327,500 from January’s ten-year high of $2,847,500. One year ago, the median price was $20,000 lower at $2.5 million. The price per square foot continues to climb here and in February, it was again at an all-time high of $1,591. That was $69 higher than in January and $285 higher than a year ago. The average sale was for 113.7% of the list price in February, up from 110% in January but below February 2014’s 115%.
Closed sales more than doubled, from January’s extremely low eight to 17 in February. That was still two sales less than a year earlier.
29 sales went to contract in February, nearly triple January’s 10 and six more than a year ago. Inventory was flat at 21 units, about the same as February 2014’s 23. Inventory relative to pending sales dropped from 2.1 months at the end of January to 0.7 months at the end of February. One year ago, there was a one month supply available.
In February, homes were on the market an average of 34 days, 12 less than in January but 21 more than in February 2014.
Analysis by Price Range
Homes priced under $2 million accounted for the biggest jump in pending sales, from five in January to 14 in February. Nine properties were actively listed at the end of February, two more than at the end of January. A 0.6 month supply was available in this segment at the end of February, less than half January’s 1.4 months. This segment made up 43% of Palo Alto’s inventory and 48% of its pending sales.
The $2 million to $2,999,999 price range also saw extremely strong demand in February, with pending sales increasing from one in January to nine in February, accounting for 31% of Paolo Alto’s total. Inventory dropped by one unit in February, to end the month with three. That was 14% of the city’s total. That left only a third of a month’s supply at the end of February, compared to 1.4 months at the end of January.
Five properties priced from $3 million to $4,999,999 went to contract in February, one more than in January. Inventory fell by three homes, from seven at the end of January to four at the end of February. That cut supply from 1.75 months at the end of January to 0.8 months at the end of February. 19% of Palo Alto’s inventory and 17% of its pending sales were in this price range.
After three months with no sales in the $5 million to $6,999,999 segment, one sale went to contract in February. Two properties were actively listed at the end of February, up from one at the end of January. That represented a two month supply. This price range made up 10% of the city’s inventory and 3% of its pending sales.
There were no pending sales of homes priced over $7 million during February, while the month ended with three properties available for sale. That was 14% of Palo Alto’s total inventory.