- Sales continue to climb – $2 million to $3 million again lead surge
- Inventory falls
- Less than a one month supply
- Price indicators mixed but prices still very strong
May was largely a repeat of April in the Palo Alto real estate market. Sales rose, inventory fell and price indicators were mixed. The $2 million to $3 million market segment again led the market in both sales gains and inventory losses. There was about a three week supply of available homes for sale at the end of May, the first time in 18 months there was less than a month of inventory here.
The median sales price in May was $2,750,000, up 3.5% ($92,500) from April and 24% ($532,000) from a year ago. The price per square foot fell 5% in May, from $1,525 in April to $1,445 in May. One year ago homes sold for $1,327 a square foot. The sales price to list price ratio fell for the second straight month but remained just over 110% in May. That’s down from 114% in April and 117% a year ago.
36 sales closed in May, four less than in April and nine less than in May 2014.
Pending sales increased 13 units in May, from 41 in April to 54. That was ten more than went pending a year ago. Inventory decreased by 23 homes, to end May with 42 properties actively listed. A 0.8 month supply was on the market at the end of May, down from 1.6 months at the end of April and 1.5 months a year ago.
Days on market was little changed at 34 days in May, from 33 days in April.
Analysis by Price Range
The supply of homes priced under $2 million was cut in half in May to seven, representing 17% of Palo Alto’s total inventory. Pending sales increased by one to 16 during May. Those 16 sales were 30% of the total. Inventory relative to pending sales was cut from 0.9 months at the end of April to 0.4 months at the end of May.
The $2 million to $3 million price range again was the most active segment during May. 26 sales went to contract, accounting for 48% of total sales. Only nine homes were actively listed in this price range at the end of May, down from 25 at the end of April. 21% of total inventory was in this category. A 0.35 month supply was available at the end of May, a big drop from 1.6 months at the end of April.
36% of Palo Alto’s inventory and 14% of pending sales were priced from $3 million to $4,999,999. This was the one segment that had an increase in inventory, from 12 at the end of April to 15 at the end of May. Pending sales doubled from April to eight in May. Supply relative to sales was cut form 3.0 months at the end of April to 1.9 months at the end of May.
Four sales of homes priced over $5 million went to contract in May, two less than in April. 11 properties were actively listed at the end of May, three less than at the end of April. This segment made up 26% of inventory and 7% of sales. A 2.75 month supply was on the market in this price range at the end of May.