- Sales continue to climb
- Inventory up for 4th straight month
- Buyers have more options
- Prices stable
- Days on market very low
Looking at only the numbers, it is clear that the Los Alto real estate market heated up in April but that is only part of the story. Demand remained strong but inventory continued to increase, giving buyers more options. An interesting dynamic was that homes priced under where they “should be” received multiple offers and sold very quickly (within about eight days). Homes priced around where they should be stayed on the market longer (30 days) and did not see as many offers.
The average sale in April was for 109% of the list price, up slightly from 108% in March but below the 113% in April 2015. The median sales price in April was $2,868,000, 2.4% or $68,000 higher than in April. One year ago, it was $1,220.
Closed sales, following the increase in pending sales last month rose from 19 in March to 27 in April, compared to 31 a year earlier.
Inventory continued to climb and we ended April with 53 properties actively listed. That was seven more than at the end of March but was still below the 58 homes for sales a year ago. Pending sales rose even faster, from 20 in March to 33 in April, which was two more than in April 2015. With pending sales increasing faster than inventory, supply relative to sales was cut from 2.3 months at the end of March to 1.6 months at the end of April.
April’s sales closed in an average of only nine days. Days on the market has been at nine or ten days for the past three months. Closed sales also took 10 days in April 2015.
Analysis by Price Range
The inventory of homes priced under $2 million was unchanged in April and ended the month at eight. Pending sales jumped from two in March to five in April. Supply relative to sales was cut from 4.0 months at the end of March to 1.6 months at the end of April. This segment accounted for 15% of both inventory and sales.
The $2 million to $2,999,999 price range is the largest segment in Los Altos, making up 43% of April’s ending inventory and 58% of the sales that went pending during the month. 19 sales went to contract during April, six more than in March. Inventory actually decreased by one unit to end April at 23. A 1.2 month supply of these homes was available at the end of April, down from a 1.8 month supply at the end of March.
The $3 million-plus segment was the most active in April, with significant increases in both inventory and sales. Inventory increased form 14 at the end of March to 22 at the end of April. Nine sales went pending during April, up from five in March. Supply fell from 2.8 months at the end of March to 2.4 months at the end of April. While 42% of Los Altos’ pending sales were in this segment, only 27% of its inventory was.