The median for-sale price for Los Altos Hills homes experienced an increase during 2014, but it took a topsy-turvy route to get there. January started off with a median of $4,196,000, and December ended with $4,850,000. In between, the price dipped into the $3 million zone four times, the lowest being $3,688,000 three of those times, in April, July and August. The highest median list price of $5,388,888 was recorded in November.
In all, 96 homes were sold with an average of 8 being bought each month. As to what buyers paid for homes here during the last year, the month-to-month median sold prices were for the most part below the median asking prices. Until December.
Big sold-price increase in December
The fourth quarter of 2014 saw a dramatic increase in the value of homes that were purchased. The median price for sold homes went from $2,760,000 in October to $3,850,000 in November, and then it leapt to $5,060,062 in December. That was the highest sold price median in more than two years.
This tells us that buyers concentrated on higher-end homes. But they weren’t as quick to enter contracts as buyers in some other Silicon Valley communities typically are. Homes that sold in December were on the market an average of 42 days before being bought. It’s not uncommon to see averages in the teens or even single digits in other cities and towns.
Larger supply of homes available
While the inventory of homes has been shrinking throughout the Valley over the past several years, the metric known as Months Supply of Inventory (MSI) has been greater in Los Altos Hills than in many local communities. The MSI metric tells us, based on current buying activity, how long before all homes would disappear from the market were no new ones added. Compare the 2014 monthly average MSI of Los Altos Hills to select other cities:
Los Altos Hills: 3.3 months’ supply Palo Alto 1.3 months’ supply Menlo Park: 1.1 months’ supply Mountain View: 0.9 months’ supply
This stat makes sense when you see the relatively “lengthy” amount of times homes here spend on the market before being bought.
So that’s a look back at 2014. How is 2015 shaping up? Seventeen properties are currently on the market, ranging from $2,498,000 to $15,000,000, for a median asking price of $8,749,000. That should keep the Los Altos Hills homes market vibrant as we move into the new year.