It’s a different real estate market in Los Alto Hills than we have become accustomed to. While inventory declined, the market feels like it is moving toward a buyer’s market. Buyers are cautious about writing offers, as homes have been staying on the market longer and there is more of a selection than what was available at this time last year. We are even seeing more contingent offers, something that uncommon when the market was red hot. It appears we are moving toward normalization in the market, away from the frenetic pace and rapidly rising prices of the past few years.
Median Sales Price
June’s sales were for 96% of the asking price, on average. That was the lowest ratio since January’s 93%. The ratio was 98% in both May of this year and June of 2015. May’s median sale price fell for the third straight month. The last time that happened was late 2013. The median sales price in May was $3.260.000, down $468,000 from $3,728,000 in May. On the other hand, the price per square foot increased from $1,083 in May to $1,173 in June. June’s price per square foot was 35% higher than a year ago.
Closed sales maintained their momentum, staying in the teens for the third straight month. 15 sales closed in June, two more than in May and four more than in June 2015.
For Sale vs. Pended
12 sales went to contract in June, four less than in May but one more than a year earlier. Ten fewer home were actively listed at the end of June (37) than at the end of May. June ended, however, with eight more properties on the market than a year ago. With both sales and inventory declining, supply relative to pending sales remained constant at about three months.
Days to Sell
June’s sales closed in an average of 33 days, compared to 109 days in May and 55 days in June 2015.
Analysis by Price Range
Under $3.5 million
Only six homes priced under $3.5 million were actively listed at the end of June, five less than at the end of May. One less sales went to contract in June (six) than in May. A 1.2 month supply was available at the end of June, down from 1.8 months at the end of May. While only 15% of Los Alto Hills’ inventory was priced under $3.5 million, 42% of pending sales were in this segment.
$3.5 million to $4,999,999
Pending sales of homes priced from $3.5 million to $4,999,999 fell again in June. I April, 10 sales went to contract in this segment. That was cut to seven in May and only three during June. Inventory was cut by two, to end June with 12 homes for sale. That doubled relative supply from two months at the end of May to four at the end of June. 32% of inventory and 25% of sales were in this price range.
$5 million or over
Homes priced at or above $5 million accounted for over half of Los Altos Hills’ inventory at the end of June. 19 homes were for sale at the end of June, three less than at the end of May. Pending sales increased by one, from three in May to four in June. That was a third of all sales here. Relative inventory dropped form 7.3 months at the end of Mya to 4.75 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