The number of homes for sale in Los Altos has stayed low in February with inventory at 54 single-family homes versus 72 in February 2010. That 18 home inventory gap is partly why the market has become inundated with multiple offer situations, available homes selling fast, and prices moving up. There were only 33 new homes placed on the market last month versus 38 in the same month in 2010. We started February with low inventory and added fewer. Los Altos already had built-up buyer demand a little inventory to satisfy it.
The number of Los Altos closed sales was only 13 in February 2011 versus 17 in February 2010 which is interesting because there were many more homes showing closing dates in February that have slipped part their close dates. This could be due to appraisal delays or just general banking delays. I know a few transactions were all cash but a few transactions with 30 day close timeframes got delayed. The days on market dropped to 52 days compared to 55 last year which shows homes are selling faster. Setting the close times too fast can be an issue.
The most important factors, average and median selling prices are doing well. The average selling price of a Los Altos home was $1,781,000 in February 2011 versus $1,708,000 last year. The median selling price of a Los Altos homes was $1,632,500 in February 2011 versus $1,640,000, a very slight drop. Keep in mind that a low unit count for sales often skews the median price. The average selling price is in line with expectations. The average selling price increased about 4.25% year-over-year which shows that the price recovery in Los Altos is sustained and gaining steam. We'll see how prices continue to hold in March to make a strong Q1.
Most Los Altos homes for sale are getting full-price offers or overbids because of the competition. That is reflected in the percentage of listing price received which is 99.59% for February, up from 98.83% last year. While I'd like to say that Los Altos is special in this regard, I'd be wrong. Homes in Palo Alto, Menlo Park, Saratoga, Mountain View, Cupertino, and Sunnyvale are all experiencing the same thing to some degree. The critical factor is that there are many buyers trying to buy homes priced below the median and those homes are being overbid heavily because of that demand. While Los Altos high-end homes have perked up as well, they are not getting the same level of competition. The sales themselves are pulling up the averages but not the % of list price figures.
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Bryan Robertson, CEO | T: 650.799.9951 | Email: email@example.com | Website: http://www.BryanRobertsonHomes.com |CA BRE# 01191946 | Catarra Real Estate, Inc | 171 Main St #220 | Los Altos, CA 94022