- Sales increase
- Inventory falls after five months of increases
- Prices steady
- Mid-range homes have most sales and inventory
The Palo Alto real estate market seems to be in a state of flux at the moment. Inventory, which had been climbing since December fell in May, while sales continued to climb. The median sales price has increased the past three months but has been below that of a year earlier for four of the past five months. The market is on good footing but is not nearly as frantic as it was a year ago, or even six months ago. Most homes, depending on price and location, are not seeing more than two or three offers. Several offers were the norm a year ago.
The median sales price in May was up $45,375 or about one percent from $2,690,000 in April to $2,715,375. That was $34,625 lower than a year ago. The price per square foot fell 10% in May, from $1,633 in April to $1,466. The price per square foot in May 2015 was $1,445. On average, homes sold in May for 104% of their list price, down slightly from 105% in April.
45 sales closed in May, 15 more than in April and nine more than a year ago.
After increasing for the past four months, inventory fell in May, from 102 at the end of April to 87 at the end of May. 72 properties were actively listed a year ago. Pending sales continued to climb, with 40 in May. That was five more than in April and four more than in May 2015. Supply relative to pending sales fell from 2.9 months at the end of April to 2.2 months at the end of May. That was still more than the 2.0 month supply available at the end of May 2015.
There was little change to the time on the market in May. The average closed sale in May took 23 days, one more day than in April. One year ago, homes were on the market an average of only 13 days.
Analysis by Price Range
15% of Palo Alto inventory and 20% of its pending sales were priced under $2 million. 13 homes were actively listed in this segment at the end of May, three less than at the end of April. Inventory was unchanged at eight. Supply fell from 2.0 months at the end of April to 1.6 months at the end of May.
36 homes priced from $2 million to $2,999,999 were for sale at the end of May, down two from April. Those 36 homes were 41% of Palo Alto’s total inventory. 18 sales went to contract in May, one less than in April. 23% of pending sales were in this price range. A 2.0 month supply was on the market at the end of May, unchanged from April.
Pending sales of homes priced from $3 million to $4,999,999 increased form five in April to nine in May. Inventory slipped by three units to end May with 23. This price range accounted for 26% of inventory and 23% of pending sales. Supply was cut in half, from 5.2 months at the end of April to 2.6 months at the end of May.
The inventory of homes priced at or above $5 million also fell in May, from 22 at the end of April to 15 at the end of May. Pending sales increase from three in April to five in May. 17% of inventory and 13% of pending sales were in this segment. The loss of inventory and increase in sales cut supply from 7.3 months at the end of April to 3.0 months at the end of May.