- Winter slowdown arrives
- Sales down
- Inventory falls again
- Prices down
After mostly resisting the lull that normally begins to slow the real estate market in the fall and winter, Sunnyvale finally gave in and the market slowed in December. The holiday season tends to keep many buyers and sellers off the market in December. There was added uncertainty about the global economy and the pending election, as well as the fact that the Federal Reserve raised interest rates. The real estate market still showed strength in December, though, as homes sold for more than their list price, on average. Overall, however, pending sales and inventory were down, as were prices.
While the average sale price was higher than the average list price, it was the lowest this ratio has been in three years. The ratio was 104% in December, compared to 106% in November and 109% a year ago. The last time the ratio was lower was April 2012’s 101%. The median sales price in December was $1,355,728, 4% or $52,722 lower than in November. December was still 11.5% higher than a year ago when the median sales price was $1,215,000. The price per square foot fell 6% in December, from $899 in November to $846 in December. One year ago, the price per square foot was $785.
Closed sales, riding on the strength of pending sales the past few months, increased by five units in December, from 45 in November to 50 in December. 52 sales closed in December 2014.
Inventory fell for the third straight month, ending December with 44 properties actively listed. That’s 27 less than at the end of November and less than half of October’s inventory. It was, however, more than December 2014’s 36 homes for sale. Pending sales were down nine, from 47 in November to 38 in December. 52 sales went to contract a year ago. Supply relative to pending sales fell from 1.5 months at the end of November to 1.2 months at the end of December.
Homes sold in December were on the market 28 days. That matches the longest time on the market in the past two and a half years. January 2015 sales were also listed for 28 days. November’s sales were on the market for 13 days and December 2014’s for 17.
Analysis by Price Range
One less sales went to contract in December (10) than in November (11). Inventory fell by seven to end December with 15 homes for sale. 34% of Sunnyvale’s inventory and 26% of its pending sales were priced under $1 million. A 1.5 month supply was available at the end of December, compared to 2.0 months at the end of November.
The $1 million to $1,499,999 price range took the biggest loss in inventory in December, falling from 31 at the end of November to 18. Pending sales were cut by seven, from 28 in November to 18 in December. That cut supply from 1.2 months at the end of November to 1.0 month at the end of December. This price range accounted for 40% inventory and 47% of pending sales.
Both inventory and sales of homes in the $1.5 million and up category fell in December. 10 sales went pending in December, one less than in November. Nine fewer properties were actively listed at the end of December than November, cutting the number of homes on the market to 11. This segment made up about a quarter of both inventory and sales. A 1.1 month supply was on the market at the end of December, down from 1.6 months at the end of December.