Mid Peninsula - Intero Real Estate Market Report - May 2016

Buy.Sell.Stay.

May 2016 Market Report Mid Peninsula Atherton, Los Altos, Los Altos Hills, Menlo Park, Palo Alto, Woodside

Š 2016 Intero Real Estate Services, Inc., a Berkshire Hathaway Affiliate and wholly owned subsidiary of HomeServices of America, Inc. All rights reserve. The logo is a registered trademark of Intero Real Estate Services, Inc. Information deemed reliable but not guaranteed. This is not intended as a solicitation if you are listed with another broker. Data Provided by Trendgraphix June 2016

Executive Insights The Summer Swell is Slashing Inventory Last month saw a flood of inventory hit the market like we hadn’t seen in a while. Listings were up in every part of the Bay Area, with most areas seeing double digit increases month over month. But that excess inventory didn’t last long and May saw the listing inventory drop drastically in almost every part of the Bay Area.

As we predicted, the strong job market and pent up demand for inventory allowed those people that have been standing on the sidelines to get back in the home-buying game. And they didn’t waste any time as sold properties for the month of May were up significantly month-over-month in almost all parts of the Bay Area.

This aggressive move on the increased April inventory is also chipping away at the days on market (DOM) for sellers. As buyers are trying to secure the purchase of available properties, we are seeing the DOM on a downward trend across the region. This trend should continue as the inventory continues to stay low into the later summer months.

Another win for sellers is the fact that buyers have access to amazing mortgage rates right now. Here’s an excerpt from Realtor.com from June 13, 2016: “The national average rate for a 30-year fixed mortgage is 3.63%, an increase from April but far below May 2015’s 4.12%. Realtor.com staffer Jonathan Smoke explains that with the Fed likely not raising rates this summer but likely raising them again by this time next year, the time is now to lock in.”

This mortgage rate news is going to allow buyers to be more aggressive with their offers and more than likely keep inventory low. In turn we will continue to see multiple offers and over asking prices in the most desirable regions of the Bay Area.

So in the blink of an eye, all those houses that hit the market in April have new buyers calling them home. It looks like this roller coaster of a real estate market will continue to keep us on our toes into the next several months. So continue to keep an eye on your individual region and let us help you become a more informed home buyer or seller.

Market Highlights Mid Peninsula

Total Homes for Sale

203

Luxury Homes for Sale*

127 *Homes for sale above $3 million.

Total Homes Sold

Average Days on Market

Average List Price

Average Sold Price

127 $5,901,000

31

$3,666,000

Inventory Mid Peninsula

Total Number Of Homes:

For Sale

Sold

203 127

117

159

49

38

50

68 79

82

95

99

92

105

130

140

185

150 124

145 116

158

151 138

131

100

108

138

150

130

166

200

200

214

250

0 15-Mar

15-Apr 15-May 15-Jun

15-Jul

15-Aug 15-Sep

15-Oct

15-Nov 15-Dec 16-Jan

16-Feb 16-Mar

16-Apr 16-May

It is a Seller’s Market Property Sales (Sold) May property sales were 127, down 8% from 138 in May of 2015 and 8.5% higher than the 117 sales last month.

Current Inventory (For Sale) Versus last year, the total number of homes available this month is higher by 52 units of 34.4%. This year’s bigger inventory means that buyers who waited to buy may have bigger selection to choose from.

The number of current inventory is down 5.1% compared to the previous month.

Property Under Contract (Pended) There was a decrease of 5.6% in the pended properties in May, with 135 properties versus 143 last month. This month’s pended property sales were 0.7% lower than at this time last year.

Inventory By The Numbers Home Price Range

Homes For Sale

Year Over Year % Difference

< $500K

0

N/A

$500K $1M

5

25%

$1M - $3M

71

57.8%

$3M - $5M

55

14.6%

$5M - $10M

45

40.6%

$10M +

45

40.6%

Pricing Mid Peninsula

Average Prices in $,000:

For Sale Price

$7,490

8000 7000 6000

Sold Price

$6,039

$5,716

$5,832

$6,221 $6,183 $5,694

$5,892

$6,311 $6,169 $6,029

$6,202

$5,187

$5,586

$5,901

5000 4000 3000

$3,374 $3,285 $3,210 $3,526 $3,350 $3,340 $3,072 $3,123 $3,045 $2,975

2000

$3,375 $2,570

$3,596 $3,666

$2,749

1000 0 15-Mar

15-Apr

15-May

15-Jun

15-Jul

15-Aug

15-Sep

15-Oct

15-Nov

The Average For Sale Price is Neutral The Average For Sale Price in May was $5,901,000, down 2.3% from $6,039,000 in May of 2015 and up 5.6% from $5,586,000 last month.

The Average Sold Price is Appreciating The Average Sold Price in May was $3,666,000, up 14.2% from $3,210,000 in May of 2015 and up 1.9% from $3,596,000 last month.

The Median Sold Price is Appreciating The Median Sold Price in May was $2,910,000, up 11.4% from $2,613,000 in May of 2015 and up 0.1% from $2,908,000 last month.

15-Dec

16-Jan

16-Feb

16-Mar

16-Apr

16-May

Pricing By The Numbers

Average Price Per Square Foot.

$1235 0.4%

Month over Month

On The Market Mid Peninsula

Average Days On Market

38

40 34

35 30 25

31

29 23 18

20

19

21

22

22

23

22

22

19 16

15 10 5 0 15-Mar

15-Apr

15-May

15-Jun

15-Jul

15-Aug

15-Sep

15-Oct

15-Nov

The Days on Market Shows Neutral Trend The average Days on Market (DOM) shows how many days the average property is on the market before it sells. An upward trend in DOM trends to indicate a move towards more of a Buyer’s market, a downward trend indicates a move towards more of a Seller’s market.

The DOM for May 2016 was 31, up 40.9% from 22 days last month and up 63.2% from 19 days in May of last year.

The Sold/Original List Price Ratio Remains Steady The Sold Price vs. Original List Price reveals the average amount that sellers are agreeing to come down from their original list price. The lower the ratio is below 100% the more of a Buyer’s market exists, a ratio at or above 100% indicates more of a Seller’s market. This month Sold Price vs. Original List Price of 98% is down 1% from last month and down from 5.8% in May of last year.

15-Dec

16-Jan

16-Feb

16-Mar

16-Apr

16-May

DOM By The Numbers Home Price Range

Days on Market

Year Over Year % Difference

< $500K

0

N/A

$500K $1M

51

88%

$1M - $3M

17

18%

$3M - $5M

18

17%

$5M - $10M

75

73%

$10M +

75

73%