- Median sales price fall for fourth straight month
- Pending sales down 36% from April
- Lower priced homes took the biggest hit in sales
- Inventory up 10%
The Palo Alto real estate softened a bit in June for the first time this year. All price indicators declined from May and the median sales price was off 14% from its high point in February. No need to panic though, as prices remained well above the level of a year ago. Pending sales fell sharply in June and closed sell dipped slightly. Inventory increased by three units during the month.
The median sales price of a single family detached home in Palo Alto in June was $2,145,000, which was $73,000 or 3.3% less than May’s $2,280,000. June’s median price was still 15% ($218,000) above the price from a year ago ($1,865,000). The average price per square foot fell 2% from $1,327 in May to $1,294 in June. That was 13% or $145 higher than June 2013’s $1,150. Sales in June closed for 112% of their asking price, the first time this ratio was below 115% since January. The ratio was 116% in May and 113% a year earlier.
Closed sales fell by three units in June to 42. One year ago, 29 sales closed. Given the sharp drop in pending sales (see below) I would expect closed sales to continue to decline.
32 sales went pending in June, 18 less (36%) than May’s 50 but one more than a year ago. June was the first month this year that pending sales declined. Inventory was up 10%, from 30 homes at the end of May to 33 at the end of June. June still had four fewer homes actively listed than a year ago. Inventory relative to pending sales increased from 0.6 months at the end of May to 1.0 month at the end of June. 1.2 months of inventory were available a year earlier.
June’s closed sales were listed for an average of 14 days, unchanged from May and three fewer days less than in June 2013.
Analysis by Price Range
Demand for homes priced under $2 million remained very high here but available inventory dampened sales in June. 13 sales went into contract during June in this segment, less than half the 27 that went pending in May. That was the fewest pending sales since February. Six homes were actively listed in this price range at the end of June, one more than at the end of May but half the level of a year ago. Inventory relative to pending sales increased from 0.2 months at the end of May to 0.5 months at the end of June. 40% of Palo Alto’s pending sales were priced under $2 million but only 18% of its inventory was in this segment.
Eleven sales went pending during June in the $2 million to $2,999,999 price range, down from 15 in May but two more than in June 2013. Inventory doubled, from four at the end of May to eight at the end of June. 10 homes were available in this price range at the end of June 2013. About three weeks of inventory was on the market in this segment at the end of June, up from about one week at the end of May. This price range accounted for 34% of Palo Alto’s inventory at the end of June and 24% of the sales that went pending during the month.
Homes priced from $3 million to $4,999,999 made up a third of Paolo Alto’s inventory and 22% of its pending sales. Seven sales went pending in June, the same as in May. Inventory fell by one unit to end June with 11. Inventory relative to pending sales declined slightly form 1.7 months at the end of May to 1.6 months at the end of June.
No sales of homes priced from $5 million to $6,999,999 went pending during June, the first time that has happened since January. One sale went pending in May. Three homes were actively listed in this price range at the end of June, one less than at the end of May. 9% of Palo Alto’s inventory at the end of June was in this price range.
In the $7 million-plus market segment, five homes were actively listed at the end of June, unchanged from May. One sale went into contract, up from zero in May. 15% of Paolo Alto’s inventory and 3% of its pending sales were priced at $7 million or more.