- Inventory increases for fifth straight month
- Sales flat
- Prices steady
- Days on market low
We continue to see the same dynamic that has been playing out the past few months, which is that homes priced aggressively low are getting more offers and selling very quickly – generally in about a week. That is driving down the average number of days that sold homes are on the market. It is also driving up the ratio of sales price to list price. That is, however, a bit misleading, in that other homes are not selling nearly as quickly or as far above the offer price. While the market is quite strong, the pace is far less hectic than it was a year ago, or even six months ago.
May’s median sales price declined from April, the result of more lower-end homes selling than normal. Half the sales that closed in May were of homes priced below $2 million. In April that mix was less than 30%. The median sales price in May was $1,982,500, which was 16% below April’s $2,345,000. It was also 1% lower than a year ago. ON average, homes sold for 107% of their list [price in May, unchanged from April but off from 111% in May 2015. The price per square foot increased $114 in May, from $1,133 in April to $1,247.
26 sales closed in May, three less than in April and nine less than a year ago.
Pending sales were unchanged from April at 31, three less than in May 2015. Inventory increased by 15 units to end May at 71 homes for sale. A year earlier, 61 properties were on the market. The increase in inventory drove the supply relative to sales up from 1.9 months at the end of April to 2.3 months at the end of May. One year ago, there was a 1.8 month supply.
May’s closed sales were on the market an average of 16 days, three more days than in April and two more days than a year earlier.
Analysis by Price Range
Pending sales of homes priced under $2 million increased from 15 in April to 19 in May, while inventory was unchanged at 34 homes. A 1.8 month supply of these homes was available at the end of May, down from 2.4 months at the end of April. This segment accounts for the bulk of the activity in Menlo Park, with 48% of the city’s inventory and 61% of pending sales.
The $2 million to $2,999,999 price range is the smallest here, making up 21% of inventory and 21% of pending sales. 15 homes were actively listed at the end of May, four more than at the end of April. Pending sales fell from nine in April to five in May. The result was in increase in supply relative to sales from 1.2 months at the end of April to 3.0 months at the end of May.
22 properties priced at $2 million or more were actively listed at the end of May, the most here in a long time. That was nine more than at the end of April. Pending sales fell from eight in April to seven in May. The jump in inventory increased supply from 1.6 months at the end of April to 3.4 months at the end of May. 31% of Menlo Park’s inventory and 23% of its pending sales were in this market segment.