The Atherton real estate market softened a bit in June, with inventory continuing to creep up and sales slipping. Price indicators showed some weakness as well, with all price indicators declining some. It’s not that the market is weak; it’s just not as robust as we have become accustomed to. Buyers are more cautious, as they are aware there is more to choose from than in the previous several months.
The average sale in June was for 98% of the list price, down from 99% in May and 102% a year ago. June was the third consecutive month this ratio was below 100%. The price per square foot declined $30 in June, from $1,465 in May to $1,435. That was still $83 higher than a year ago. The median sales price fell $1.5 million in June; however, that was a mix issue, not a declining price issue. Lower end homes sold in June than in May (when the mix was skewed to the high end).
Only five sales closed in June, down from nine in May and 10 a year ago.
For Sale vs. Pended
45 homes were actively listed at the end of June, two more than at the end of May and the most since November 2013. Pending sales fell for the second straight month, from nine in May to six in June. Ten sales went to contract during June 2015. At the end of June, we had a 7.5 month supply relative to pending sales, up from 4.8 months at the end of May and 2.5 months a year ago.
Days to Sell
The length of time to sell a home here continued to climb in June. The average sales closed in 98 days in June, compared to 53 days in May and 17 days in June 2015.
Analysis by Price Range
Under $3 million
Six homes priced under $3 million were actively listed at the end of June, tow more than at the end of May. 13% of Atherton’s inventory was priced under $3 million. No sales went to contract in this segment during June, compared to one in each of the previous three months.
$3 million to $4,999,999
The inventory of homes in the $3 million to $4,999,999 price range has remained steady at seven units for the past three months. Those seven properties accounted for 16% of all inventory. Pending sales have also remained constant during the past three months at two, representing a third of all sales in June. Supply remained unchanged at 3.5 months.
$5 million to $9,999,999
The $5 million to $9,999,999 price range made up 27% of Atherton’s inventory and a third of pending sales. Inventory was unchanged from May at 12, while pending sales fell from three in May to two in June. That left a six month supply at the end of June, compared to four months at the end of May.
$10 million or more
Homes priced at $10 million or more make up the largest portion of the market here, accounting for 44% of inventory. 20 homes were actively listed in this segment at the end of June, unchanged from May. Two sales went to contract in June, a third of all sales. Inventory relative to sales changed from 6.7 months at the end of May to 10 months at the end of June.
Check out these other Real Estate Market Conditions Reports for June 2016:
- Los Altos
- Los Altos Hills
- Menlo Park
- Mountain View
- Palo Alto
- Redwood City