- Uncertainty still reigns
- Sales maintain December levels
- Inventory rises a little but still low
- Price indicators mixes
- Low end driving market
Interesting times. The real estate market is in a bit of flux right now. Demand is strong for lower priced homes as buyers realize that the inevitable rise in interest rates will reduce their capability of buying at the level they desire and will force them into a lower price band. At the same time, there is some concern that a price “reset” may occur in the luxury market. It’s actually a great time to be selling, as demand remains strong and inventory low. Getting the price right and presenting the home well are very big factors in the market, even more so than normal.
January reflected the uncertainty, with sales and inventory not changing much and price indicators not all moving in the same direction. However, the strength of demand here was demonstrated in two ways. First of all, sales in many of the surrounding communities fell in January but Mountain View saw a small increase; a reflection of the fact that homes here are very much in the sweet spot of pricing right now. Secondly, homes do not stay on the market long here. The average for the past six months is 17 days. 20 days is considered a hot market.
January’s median sales price was $1,615,000, a drop of 5.6% from $1,710,000 in December but 16% higher than January 2015’s $1,394,000. The drop in January is more a reflection of the mix of properties sold than an actual pricing decline. Evidence of that is the fact that the price per square foot increased 6%, from $1,164 in December to $1,126 in January. January’s price per square foot was 20% higher than a year ago. In addition, the average sale in January was for 107% of the list price. While that was down from 109% in December and115% a year ago, that fact that homes are still selling that far over list demonstrates the strength of demand.
Closed sales did not change much from December. 16 sales closed in January, one more than in December and 10 more than a year ago.
Pending sales have been relatively weak the past few months but the fact that they did not decline in January is a good sign. Pending sales were identical to closed sales. 16 sales went to contract in January, one more than in December and 10 more than in January 2015. Inventory increased by four units, from 21 at the end of December to 25 at the end of January. January 2015 had 27 homes actively listed. Supply relative to pending sales increased a little, from 1.4 months at the end of December to 1.6 months at the end of January.
January’s closed sales were on the market for an average of 16 days. Only December’s 15 days were shorter in the past twelve months.
Analysis by Price Range
There was not much inventory priced under $1.25 million, so there weren’t many sales. Three homes were on the market in this segment at the end of January, unchanged from December. Two sales went pending in January, the same as in December. That left supply unchanged at 1.5 months. 12% of Mountain View’s inventory and 12.5% of its pending sales were priced under $1.25 million.
Homes priced from $1.25 million to $1,999,999 account for the bulk of inventory and sales. 75% of pending sales and 60% of inventory were in this price range in January. 15 properties were actively listed at the end of January, unchanged from December. 12 sales went to contract in January, two more than in December. As s result, inventory relative to sales dropped from 1.5 months at the end of December to 1.25 months at the end of January.
Seven properties priced at $2 million or more were actively listed at the end of January, four more than at the end of December. January’s inventory in this segment was 28% of Mountain View’s total. Two sales went to contract in January, one less than in December. January’s two sales were 12.5% of total sales. A 3.5 month supply was available at the end of January, up from one month at the end of December.