- Sales jump
- Inventory still low
- Homes sold for 115% of list
- Demand somewhat uneven
After showing signs of slowing in September, the Palo Alto real estate market refused to succumb to the typical autumn malaise in October. Both pending sand closed sales jumped during the month and while the median sales price fell, homes sold for nearly 115% of their list price. While the homes that sold did so in an average of 14 days, that was not the case universally. Demand was somewhat spotty, with some homes and locations seeing a great deal of activity and others not so much. The market may be showing signs of plateauing but Palo Alto continued to forge ahead in October.
The median sales price in October was $2.75 million, down 18% from $3,337,500 in September. October’s median sales price was 6% higher than October 2014’s $2.51 million. The average sale in October was for 114.6% of the list price in October, up from 111% in September and 113% a year ago. The price per square foot was $1,600 in October, $28 less than in September but $200 higher than in October 2014.
After falling sharply in September, closed sales rose just as sharply in October. 35 sales closed during the month, compared to 18 in September. Surprisingly, October had fewer closed sales than a year ago, when there were 43.
Pending sales also made a big jump in October, rising 58%, from 19 in September to 30 in October. As with closed sales, October was still lower than a year ago, when 43 sales went to contract. Inventory could not keep up with all the sales but did not fall as much as might be expected. 60 properties were actively listed at the end of October, down six from the end of September but five more than at the end of October 2014. The result was a 2.0 month supply relative tp pending sales at the end of October, down from 3.5 months at the end of September. A 1.3 month supply was on the market a year ago.
Properties that sold in October were not on the market long, an average of only 14 days. That’s more than a week less than September’s 22 days and October 2014’s 23 days.
Analysis by Price Range
The inventory of homes priced under $2 million was cut by a third, from 21 at the end of September to 14 at the end of October. That was 23% of Palo Alto’s inventory. Pending sales nearly tripled in this segment, from three in September to eight in October. Those eighth sales were 27% of the City’s total. A 1.75 supply was on the market at the end of October, down from 7.0 months at the end of September.
Pending sales of homes priced from $2 million to $2,999,999 increased from nine during September to 14 in October, representing 47% of all sales here. Inventory fell five units to end October with 22 homes for sale, making up 37% of all inventory. Supply relative to pending sales fell from 3.0 months at the end of September to 1.6 months at the end of October.
The $3 million to $4,999,999 accounted for 27% of Palo Alto’s inventory at the end of October and 23% of its pending sales during the month. Inventory actually increased from 12 homes at the end of September to 16 at the end of October. Pending sales were unchanged at seven. That increased the supply to 2.3 months at the end of October from 1.7 months at the end of September.
Only one sale of a home priced at $5 million-plus went to contract during October, which was one more than did so in September. Inventory in this segment increased by one home to eight at the end of October. 13% of inventory and 3% of sales were priced at $5 million or more.