- Inventory drops
- Sales slow – but not by much
- Days on market shortest in at least three years
- Price indicators mixed
- Still a seller’s market
- Low end has most sales, high end the most inventory
I think things are very interesting right now. While we still have very strong demand for housing it feels like we may be reaching a plateau with regards to the rapid (double digit) year-over-year price increases we have experienced the past few years. Prices are likely to continue increasing but at a slower rate. Buyers are still willing to move aggressively if they find what they want but they are definitely more cautious. Inventory is (still) very low but is higher than it was last year at this time and it is not taking very long for the homes that are available to sell. The pending Fed interest rate increase may be causing some uncertainty but does not appear to be affecting the market much at this time.
The median sales price in November fell 20% from October’s$4,248,000 to $3,405,000. The price in November was also 11% lower than November 2014’s $3,850,000. November’s price per square foot, on the other hand increased 12% from $1,121 in October to $1,253 in November, which was 24% higher than a year ago. After falling below 100% last month, the sales price to list price ratio rebounded to 107% in November, about the same as a year earlier.
Closed sales remained low again in November at six, one more than in October. Thirteen sales closed in November 2014.
Inventory fell from 52 homes at the end of October to 43 at the end of November, a 17% decline. That was still way ahead of the level of a year ago when only 28 homes were actively listed. Pending sales we somewhat surprisingly buoyant, falling only one to end November with six. Eleven sales went pending in November 2014. Inventory relative to pending sales was little changed at 7.2 months, compared to 2.6 months a year ago.
It took only 12 days, on average for homes to sell in November, the shortest amount of time in at least three years. By comparison, it took 34 days in October and 31 days a year ago.
Analysis by Price Range
Homes priced under $3.5 million had the bulk of the pending sales in November but that was not the case with inventory. November ended with only five homes available in this segment, down from nine in October. Those five were 11% of total inventory. Four sales went to contract during November. That doesn’t sound like much but it was two thirds of all sales here during the month. Inventory relative to pending sales was cut from 3.0 months at the end of October to 1.25 months at the end of November.
The $3.5 million to $4,999,999 price range accounted for 44% of the city’s inventory but only 17% of pending sales. 19 homes were actively listed at the end of November, two less than at the end of October. Only one sale went to contract during the month, down from three in October. That means there was a 19 month supply at the end of October, up from seven months at the end of October.
The $ 5million-plus segment accounted for the same share of Los Altos Hills’ inventory and sales as the middle market segment (44% and 17%, respectively). One sale went pending during November, the same as in the prior four months. 19 properties were for sale at the end of November, three less than at the end of October. November’s ending inventory represented a 19 month supply.