With only six closed sales in both July and August, it’s difficult to draw any conclusions about prices; however, the one thing that was clear in August, was that high end properties were the ones selling the most. As a result, the median sales price was way up but the sales price to list price ratio was down. Pending sales rebounded from their July drop and it was homes priced over $5 million leading the way, with six in August (more than half the total). With the fall season upon us, the market continued to slow down, on top of the fact that things were already moving that way the past few months already. The market remains strong, with buyers actively looking. They are just a bit more selective than they were just a few months ago.
Median Sales Price
Perhaps the biggest indication of how the market has changed over the past year was that the average sale in August was for just 93% of the list price, down from 96% in July and 108% a year ago. The median sales price jumped more than $4 million, due to more high-end homes selling. With so few sales, changes in pricing averages can be misleading. The price per square foot more than doubled to $2,192 in August.
For the second straight month, only six sales closed in August. 11 sales closed in August 2015.
For Sale vs. Pending
Inventory has been mostly flat the past few months. 36 homes were actively listed at the end of August, unchanged from July but nine less than a year ago. After being cut sharply in July, pending sales made a bit of a comeback, increasing by five to 11 during August. That is the same number of pending sales a year ago. Inventory relative to pending sales was cut from 6.0 months at the end of July to 3.7 months at the end of August. There was a 3.9 month supply at the end of August 2015.
Days to Sell
The length of time homes are on the market has been trending upward, form 42 days in July to 66 in August. One year ago, homes were listed for an average of only 24 days.
Analysis by Price Range
Under $3.5 million
Typically, it is the low end of the market that dominates pending sales and has very low inventory. Well, the low inventory part held true in August but not the sales part. Only two sales under $3.5 million went pending in August, down from five in July. That was only 18% of all pending sales here. Only three homes were actively listed in this segment, accounting for 8% of the total. Those three homes represented a 1.5 month supply.
$3.5 million to $4.99 million
The middle of the market (homes priced from $3.5 million to $5 million) made up 39% of Los Altos Hills’ inventory at the end of August, with 14 properties for sale. That was one more than at the end of July. Only three sales went to contract in this price range during August, which was, however, two more than in July. 27% of total sales were in this segment. A 4.7 month supply was available at the end of August.
$5 million or over
It seems like feast or famine in the high end of the market. In June, we had five sales go contract. Then there were none in July, only to have six in August. Inventory, meanwhile has remained mostly unchanged (18 at the end of June, 19 at the end of both July and August). There was a three month supply at the end of August.
Check out these other Real Estate Market Conditions Reports for August 2016:
- Los Altos
- Los Altos Hills
- Los Gatos
- Menlo Park
- Mountain View
- Palo Alto
- Santa Cruz