- Sales remain high
- Inventory remains low
- Homes selling in about two weeks, on average
- Average sales price 112% of list
- Price per square foot falls for third straight month
The Palo Alto real estate market has been very consistent the past few months. Prices remain high but haven’t changed much. Each month, when sales figures first come out, they appear to surge (with inventory falling accordingly) but then numbers are restated later in the month, showing less dramatic changes. June’s figures show the same initial changes. If they are adjusted as the past two months have been, then we will see a market that had low inventory but not as low as it had been during the first quarter of the year.
June’s median sales price was $2,750,000, unchanged from May but still 14% higher than a year ago ($2,415,000). The price per square foot fell for the third consecutive month, from $1,445 in May to $1,436 in June. June’s price was still 11% higher than June 2014’s $1,295. On average, homes sold for 112% of their list price in June, up from 110% in May and about the same as a year ago.
Closed sales fell for the second straight month, from 36 in May to 32 in June. One year ago, 42 sales closed.
44 sales went to contract in June, up from 38 in May. Inventory fell from 64 at the end of May to 41 at the end of June. I would expect June’s numbers to be restated (downward for sales and upward for inventory) but as we go to print, this is what they are. There was a 0.9 month supply available relative to pending sales at the end of June, down from 1.7 months at the end of May.
Properties were on the market for 13 days in June, one less day than in May and two less than in June 2014.
Analysis by Price Range
10 homes priced below $2 million were actively listed at the end of June, down from 12 at the end of May. Pending sales increased five units, from 11 in May to 16 in June. Inventory fell from 1.1 month at the end of May to 0.6 months at the end of June. 24% of Palo Alto’s inventory at the end of June and 36% of its pending sales during the month were priced below $2 million.
Homes priced from $2 million to $2,999,999 made up 29% of inventory and 34% of sales. 15 sales went to contract in June, down from 18 in May. Inventory fell by six homes, from 18 at the end of May to 12 at the end of June. That left a 0.8 month supply in this price range at the end of June, down from one month at the end of May.
Nine sales of homes in the $3 million to $4,999,999 price range went pending in June, up three from May’s six. June’s sales were 21% of Palo Alto’s total. Inventory was cut by more than half, from 22 at the end of May to 10 at the end of June, representing 24% of the city’s total. Inventory relative to sales dropped from 3.7 months at the end of May to 1.1 months at the end of June.
Nine homes were available for sale for $5 million or more at the end of June, three less than at the end of May. Four sales went pending during June in this segment, one more than in May. A 2.25 month supply was on the market at the end of June, down from 4.0 months at the end of May. This price range accounted for 22% of inventory and 9% of pending sales.