Not as many homes are sold in Los Altos Hills as in many other Silicon Valley communities, but the ones that do sell command top dollar. Looking at median sold prices over the last two years, we see a clear trend of increase.In March, the median sold price for single-family homes was $3,600,000. For the 12 months ending in March 2015, the average monthly figure was $3,596,505, up 20.1% from $2,990,104 in the previous 12 months.
While the number of properties sold during these two periods has been fairly consistent (104 in the year period ending in March 2015; 111 in the period ending in March 2014), the number of available homes on the market to choose from has dwindled:
• April 2014-March 2015: 414 homes listed • April 2013-March 2014:665 homes listed
These numbers imply that although the homes inventory has diminished, buyer interest has not. When the number of sold homes remains consistent during a drop in inventory, there are likely some intense bidding wars taking place. When this happens, it’s normal to see a gradual increase in the sold price of homes as buyers come in with offers they hope will exceed those of the competition.
Days on the market decrease
As inventory drops but sales remain steady, we also notice an increase in the speed at which homes are selling. In March 2015, homes lasted an average of 30 days on the market. That’s down from 48 in March 2014 and 55 in March 2013. The decrease is also seen in year-to-year comparisons:
• April 2014-March 2015: 38.8 days on the market • April 2013-March 2014: 52.8 days on the market
Months supply of inventory
The months supply of inventory statistic tells us how long it would take for the current inventory of homes to sell out, based on the speed of sales. The months supply of inventory in Los Altos Hills at the end of March was 2.5, which is almost half the national average of 4.7. Two and a half months of inventory is relatively high by Silicon Valley standards, but it’s very low for Los Altos Hills. Compare the two 12-month periods:
• April 2014-March 2015: 2.8 months of inventory • April 2013-March 2014: 5.0 month of inventory
So we see all the pieces in place for some interesting trends as we move into summer. Look for consistently higher prices being offered for homes as fewer sellers choose to put their properties on the market.