The trend toward normalization continued during July. Buyers, while still active, were more conservative and willing to take more time. Some properties were still getting multiple offers but not as many as was the case as recently as last spring. The market remains very healthy; it’s just a more balanced market compared to the fast pace and rapidly rising prices of the past few years. A market where homes sell for just over their list price in an average of 20 days is still considered strong. We have just become accustomed to a more frantic pace.
Inventory fell for the second straight month, while sales (which spiked last month) returned to a more normal level. The median sales price held steady but the decline in the sales price to list price ratio continued. Homes sold for just over 100% of their asking price in July. As recently as February, that ratio was 111%.
Median Sales Price
July’s average sale was for 100.7% of the list price. That’s down from 104% in June and 109% in July 2015. July’s median sales price was little changed, from June’s $2,789,000 to $2,797,500. For the second straight month, the median sales price was lower than a year earlier (2% lower in July). The price per square foot, after falling for the past four months, managed an $8 increase in July to $1,162. That was 5% lower than a year ago.
28 sales closed in July, down from 40 in June and equal to the level of a year earlier.
For Sale vs. Pending
The sharp increase in pending sales in June was short lived, as they returned to more normal level in July. 26 sales went to contract in July, down from 41 in June but only three less than a year ago. 50 properties were actively listed at the end of July, nine less than at the end of June but eight more than in July 2015. Relative to pending sales, inventory was at 1.9 months at the end of July, compared to 1.2 months at the end of June and 1.45 months a year ago.
Days to Sell
The average time on the market of homes sold in July was 20 days. We have seen the days on the market increase from a low of nine in April. June’s number was 18, while one year earlier, it was 15.
Analysis by Price Range
Under $2 million
Homes priced under $2 million accounted for only 8% of both sales and inventory in July. Four homes were for sale in this segment at the end of July, one less than at the end of June. Only two sales went to contract in July, compared to six in June. A two month supply of these homes was on the market at the end of July, up from 0.8 months at the end of June.
$2 million to $2.9 million
With 65% of pending sales and half the inventory, the $2 million to $2,999,999 price range is where the action is in Los Altos. Inventory fell from 30 at the end of June to 25 at the end of July. Pending sales fell from 26 in June to 17 in July. Supply increased from 1.2 months at the end of June to 1.6 months at the end of July.
$3 million or over
21 homes priced at $3 million or more were actively listed at the end of July, three less than at the end of June. Seven sales went pending during July, two less than in June. A 3.0 month supply was available at the end of July, up from 2.7 months at the end of June. 27% of the city’s pending sales during July were in this segment, along with 42% of inventory at the end of the month.
Check out these other Real Estate Market Conditions Reports for July 2016:
- Los Altos
- Los Altos Hills
- Menlo Park
- Mountain View
- Palo Alto
- Redwood City