- Inventory increases
- Sales remain very low
- Buyers are cautious
About the only thing that differentiated February from January in the Los Alto Hills real estate market was that inventory increased. Demand remains for homes that are priced appropriately and the increase in inventory should translate to more sales. Buyers remain cautious but they are out there and we are seeing movement in the marketplace. Sales were little changed from January and pricing remained in flux. There remains a great deal of uncertainty in high end of the real estate market, which makes up the bulk of homes in Los Alto Hills.
Only four sales closed in February, making it difficult, at best, to draw conclusions about pricing. February’s median sales price was $3.25 million, down from about $4.1 million in January. On the other hand, the price per square foot increased for the first time since October. January’s price per square foot was $954, an $11 increase from $943 in January but $289 lower than a year ago. After falling for three straight months, the ratio of sales price to list price increased in February. February’s ratio was 96%, compared to 93% in January and 113% a year ago. February was the third straight month that homes sold for less than their list price, on average. The last time that happened was August-November 2013.
Closed sales ended a three month slide, with four in February, one more than in January. Eleven sales closed in February 2015.
Inventory was definitely a bright spot in February, increasing from 27 homes in January to 36 in February. That was also seven more homes than were available a year ago. Pending sales increased one unit from January to four in February. With the increases in both sales and inventory, supply relative to inventory remained at nine months. One year ago there was a two month supply.
February four sales closed in an average of 77 days, down from 95 days in January.
Analysis by Price Range
The song remains the same in the sub $3.5 million market, which is to say little inventory or sales. Inventory fell in this segment for the fourth straight month, ending February with only two homes actively listed. Two sales went to contract in February, one more than in January. That left a one month supply. 50% of sales were priced under $3.5 million, while only 6% of inventory was in this segment.
The inventory of homes priced form $3.5 million to $4,999,999 increased five units, from 13 at the end of January to 18 at the end of February. 50% of Los Altos Hills’ inventory was in this price range. Pending sales were unchanged at one in February, accounting for 25% of all sales. February’s 18 homes for sales represented an 18 month supply.
Homes priced at $5 million or more saw and increase in inventory of five units; from 11 at the end of January to 16 at the end of February. Only one sale went to contract in February, unchanged from January. 44% of inventory and 25% of sales were in this segment.