- Pending sales triple
- Inventory up again
- Prices rise
- But still below level of a year ago
- Days on market very low
No more winter slowdown in Palo Alto. Pending sales more than tripled and inventory rose for the third consecutive month. The median sales price increased but remained below the level of a year ago, also for the third straight month, something that hasn’t happened here in years. Homes are still selling well above their list price (on average) and they are not staying on the market for very long (only 14 days, on average). Homes priced from $2 million to $3 million had the biggest increases in both sales and inventory.
The median sales price in March was $2,574,000, 18% ($394,000) higher than in February. March’s median sales price was still 2% or $59,500 lower than March 2015’s $2,633,500. The price per square foot was up 15%, from $1,486 in February to $1,713 in March. March’s price per square foot was also $25 higher than a year ago. The average sale in March was for 106% of the list price, down slightly from 107% in February but well off March 2015’s 118%.
Closed sales more than doubled, from 15 in February to 32 in March. That was the most closed sales since there were 38 in October and was one more than closed in March 2015.
More homes became available for sale during February and March and buyers moved aggressively to buy them. Pending sales more than tripled, from 14 in February to 43 in March. That was the most pending sales since October 2014. Inventory increased 28%, from 61 at the end of February to 78 at the end of March. The bigger gain in pending sales reduced available supply from 4.4 months at the end of February to 1.8 months at the end of March. A 2.1 month supply was on the market a year ago.
March’s closed sales were listed for an average of only 14 days in March, down from 21 days in February and 16 days in March 2015. 20 days is generally considered a hot market.
Analysis by Price Range
12 homes priced under $2 million were actively listed at the end of March, one more than at the end of February. Nine sales went to contract during March, two more than in February. A 1.3 month supply was available at the end of March, down from 1.6 months at the end of February. 15% of Palo Alto’s sales at the end of March and 21% of its pending sales during the month were priced below $2 million.
Homes priced from $2 million to $2,999,999 saw pending sales spike, from five in February to 25 in March. That was 58% of all pending sales here. Inventory increased by six units to end March with 29, which was 37% of the city’s total supply. Inventory relative to sales was cut from 4.6 months at the end of February to 1.2 months at the end of March.
Sales also rose faster than inventory in the $3 million to $4,999,999 price range, reducing supply from 10 months at the end of February to 3.4 months at the end of March. 24 properties were actively listed at the end of March, up six from 23 at the end of February. Pending sales jumped from two in February to seven in March. 31% of Palo Alto’s inventory and 16% of its pending sales were in this price range.
The inventory of homes priced at or above $5 million nearly doubled from seven at the end of February to 13 at the end of March. Two sales went to contract during March, compared to none in February. This segment accounted for 17% of inventory and 5% of pending sales.