- All price indicators rise
- Sales fall sharply
- Inventory increases, led by low end
The inventory of single family detached homes increased 21% from June to July in Palo Alto, while closed sales fell 31% and pending sales declined 28%. The median sales price, average price per square foot and the ratio of the sales price to list price all increased from June and were higher than a year ago.
July’s median sales price was $2,438,000 in July, up $23,000 from $2,415,000 in June. July’s price was also 29% or $548,000 higher than July 2013’s $1,889,500. The average price per square foot in July was $1,348, which was 4% or $53 higher than in June ($1,295) and 19% or $213 higher than a year ago ($1,135). The average closed sale in July was for 114% of the list price, compared to 112% in June and 113% a year ago.
29 sales closed in July, 13 less (31%) than the 42 that closed in June and 14 less than a year ago. July had the fewest closed sales since March.
Pending sales also fell sharply in June, from 32 in June to 23 in July, a 28% decline. Pending sales have been cut in half since there were 50 in May. Inventory increased seven units (21%) from 33 at the end of June to 40 at the end of July. Inventory relative to pending sales increased form 1.0 month at the end of June to 1.7 months at the end of July. A year ago, 0.6 months of inventory was available.
Homes were listed for an average of 17 days in July, up from 14 in June. One year ago, homes were also on the market for an average of 17 days.
Analysis by Price Range
The inventory of homes priced under $2 million increased, while pending sales fell. 10 properties were on the market in this segment at the end of July, up from six at the end of June. Pending sales fell from 13 in June to eight in July. That was the fewest sales in this segment since December. 1.25 months of inventory was on the market at the end of July, up from about two weeks at the end of June. One quarter of Palo Alto’s inventory and 35% of its pending sales were priced under $2 million.
The inventory of homes in the $2 million to $2,999,999 price range increased from eight at the end of June to 10 at the end of July. Pending sales fell by one to 10 during July. That increased inventory relative to pending sales from 0.7 months at the end of June to 1.0 month at the end of July. This price range accounted for 25% of Palo Alto’s inventory at the end of July and 44% of the sales that went pending during the month.
13 properties priced from $3 million to $4,999,999 were actively listed at the end of July, up two from 13 at the end of June. Four sales went to contract in July, three less than in June. Inventory relative to pending sales doubled from 1.6 months at the end of June to 3.3 months at the end of July. 33% of inventory and 17% of pending sales were in this price range.
One sale went pending in the $5 million to $6,999,999 price range during July, compared to none in June. That one pending sale represented 4% of Palo Alto’s July total. Three homes were actively listed at the end of July, unchanged from June, and accounting for 7.5% of Palo Alto’s July inventory.
Homes priced at $7 million and up accounted for 10% of Palo Alto’s month-end July inventory, with four homes available. That was one less than at the end of June. None sales went pending in this segment during July, down from one in June.