Sunnyvale Market Conditions February 2014
- Closed sales and pending sales jump
- All price indicators move up
- Inventory still very low
The Sunnyvale real estate market remained hot in February, with very low inventory not keeping sales from climbing. Closed sales increased nearly 60% and sales that went into contract nearly doubled. Prices increased and homes were on the market a shorter period. It was a very good month for Sunnyvale.
February was the fourth consecutive month with a median sales price over $1 million. February’s median price of $1,120,000 was $100,000 (10%) higher than January’s $1,020,000 and $410,000 higher (58%) than February 2013’s $710,000. February 2013’s price was extremely low, it had not been that low in a year and has not been close to that level since. The monthly median sales price has been higher than the previous year for 22 consecutive months. The average price per square foot was $745 in February, up $45 or 6% from $700 in January. A year ago, the average price per square foot was $550. Sales closed in January for 109% of their list price, on average, which was the highest ratio here in at least three years, probably a lot longer.
27 sales closed during February, 10 more or 59% more than January’s 17. That put us close to where we were a year ago, when 29 sales closed in February 2013. It also reverses the trend of falling sales that has been happening here since mid-2013. With both inventory and pending sales on the rise (see below) sales should continue to rise as we head into spring.
40 sales went into contract in February, up 91% from 21 in January and 10 more than a year ago. 18 properties were actively listed at the end of February, two more than the end of January and one more than a year ago. With sales rising faster than inventory, we ended February with less inventory relative to sales that went pending (0.5 months at the end of February versus 0.8 months at the end of January).
February’s closed sales were on the market an average of 16 days, down 45% form 29 days in January. February was the second straight month this number fell.
Analysis by Price Range
Only one home priced below $750,000 was actively listed at the end of February, down from four at the end of January and from 15 at the end of August. Four homes were available in this segment a year ago. 12 sales went into contract in February, five more than in January and four more than a year ago. 30% of the sales that went into contract during February in Sunnyvale were in this segment, compared to only 6% of inventory at the end of January. Only two days of inventory relative to sales that went pending were on the market at the end of February, compared to more than two weeks at the end of January.
25 sales of homes priced from $750,000 to $1,299,000 went into contract in February, more than three times January’s total of eight and 25% more than a year ago (20). Inventory in this price range increased from eight at the end of January to 11 at the end of February. Inventory relative to sales that went pending decreased from 1.0 month at the end of January to 0.4 months at the end of February. 61% of Sunnyvale’s inventory at the end of February and 63% of the sales that went pending during the month were in this price range.
Homes priced at $1.3 million an up accounted for a third of Sunnyvale’s inventory at the end of February but only 8% of the sales that went pending during February. Three sales went into contract in February, half the number form January. Inventory increased from four to six at the end of February. Inventory relative to sales that went pending increased from 0.7 months at the end of January to 2.0 months at the end of February.
