- Sales spike again
- Inventory increases but not as fast as sales
- Prices continue upward trend
- Average sale price = 119% of list price
- Price per square foot highest ever
The Palo Alto real estate market continued its red hot ways in March, with pending sales spiking for the second straight month. Inventory increased for the fourth straight month, a very welcome sign, but was unable to match the pace of sales gains. Prices moved higher, best demonstrated by the fact that March’s average sales was for a whopping 119% of the list price.
The median sales price in March was $2,633,500, which was $113,500 or 4.5% higher than February’s $2,520,000 and $153,500 or 6% higher than March 2014’s $2,480,000. February set a new record with a price per square foot of $1,591. March blew past that figure, establishing a new record of $1,688. March was28% higher than a year ago. As mentioned, the average sales price in March was 119% of the list price, a significant improvement over March’s already high 114%. This ratio was 116% a year ago.
After doubling last month, closed sales nearly doubled again in March. 32 sales closed in March, up from 17 in February. March had 15 more sales than a year earlier.
Pending sales jumped 153% in March, from 17 in February to 43. Even with the high level of sales, inventory managed to eke out a eight unit gain, increasing to 45 at the end of March. That was, however, 19 fewer homes than were on the market a year ago. With sales climbing more rapidly than inventory, the supply relative to pending sales dropped from 2.2 months at the end of February to 1.0 month at the end of March.
The drop in the length of time homes were on the market was another indicator of the strength of demand here. March’s sales were listed for an average of 16 days, less than half of February’s 34 days. However, March’s sales were on the market considerably longer than those of a year ago (seven days).
Analysis by Price Range
Homes priced under $2 million accounted for 31% of Palo Alto’s inventory at the end of March and 37% of the pending sales during the month. 14 properties were for sales in this segment at the end of February, up one from February but 13 less than a year ago. 16 sales went to contract in March, seven more than in February and five more than in March 2014. A 0.9 month supply was on the market at the end of March, down from 1.4 months at the end of February.
14 sales of homes priced from $2 million to $2,999,999 went to contract in March, up from three in February and the most in this price range since October 2013. Six properties were added to inventory, ending March with 14, representing a 1.0 month supply. 31% of Palo Alto’s inventory and 33% of its pending sales were in this segment.
The inventory of homes priced from $3 million to $4,999,999 also jumped, from three at the end of February to 12 at the end of March. Pending sales, on the other hand fell from nine in February to five in March. That left less than a two week supply available at the end of March. This price range made up 11% of inventory and 28% of pending sales.
One sale of a home priced at $5 million or more went pending in March, 2% of the city’s total. Inventory increased from seven at the end of February to 12 at the end of March (27%). That was a twelve month supply.