- All price indicators set highs
- Closed and pending sales jump
- High end leads the market
- Inventory can’t keep up
The real estate market continued to heat up in March. Sales (both pending and closed) were sharply higher, the median sales price and price per square foot continued to climb, and inventory fell after eking out small gains the past two months.
The median sales price in March was $1,226,750, the highest it has been in at least three years. That was $106,750 (9.5%) higher than February’s $1,120,000, which had been the previous high. A year ago, the median sales price was $1,105,000. The average price per square foot increased for the third straight month to $791, which was $46 (6%) higher than February’s $745 and $194 (33%) than March 2013’s $597. The average closed sale in March was for 113.2% of the list price, the highest ratio in years, beating the previous high of 113.0% from May 2013.
Closed sales jumped 41% in March, from 27 in February to 38. That was still 16% lower than the number of sales a year ago, when 45 closed.
49 sales went pending in March, up nine from 40 in February, a 23% increase. March’s sales were still below March 2013’s 61 sales by 20%. Inventory, unable to keep up with demand fell three units to 15 at the end of March from 18 at the end of February. 24 properties were actively listed a year ago. Inventory relative to pending sales fell from 0.5 months at the end of February to 0.3 months at the end of March.
Homes were on the market longer, with March’s closed sales being listed for an average of 26 days, compared to 16 days for February.
Analysis by Price Range
Sales of homes priced under $750,000 were cut in half in March, from 12 in February to six. Three properties were actively listed in this segment at the end of March, up from two at the end of February. That left only 0.3 months of inventory at the end of March, down from 0.4 months at the end of February. 20% of Sunnyvale’s inventory and 12% of its sales that went pending were in this segment.
Homes priced from $750,000 to $1.299 million saw sales jump 24% from 25 in February to 31 in March. Inventory fell by two units to nine at the end of March. Inventory relative to pending sales fell from 0.4 months at the end of February to 0.3 months at the end of March. This price range accounted for 60% of Sunnyvale’s inventory and 63% at the end of March and 63% of the sales that went pending during the month.
12 sales of homes priced at $1.3 million or more quadrupled in March to 12, from three in February. That is an extremely high number for this segment and double the next highest monthly total the past two years. Inventory was cut in half to three at the end of March. That left only one week of inventory relative to pending sales at the end of March, compared to 2.0 months at the end of February. This segment had 25% of Sunnyvale’s sales and 20% of its inventory.