- Prices stay strong
- Sales fall sharply
- Inventory flat but low end loses share
Price indicators remained fairly steady from July to August here, even though sales fell sharply. Closed sales were off 34% from July and pending sales were down 21%. The low end of the market continued to see inventory decline, while mid-range homes picked up the slack.
The median sales price in August was $1,145,000, little changed from $1,138,000. August’s price was 21% or $195,000 than a year ago ($950,000). The median sales price has been over $1 million here for the past four months and all but two months since October of last year. The average price per square foot dipped $24, from $693 in July to $669 in August. By comparison, a year ago, the average price per square foot was $77 lower at $592. August’s sales closed for 107.4% of the average list price, down from 108.6% in July but higher than August 2013’s 104.9%.
Closed sales fell 34%, from 70 in July to 46 in August. That was the fewest sales here since March. August also had fewer sales than a year ago when 63 closed.
Pending sales fell 21% in August, from 53 in July to 42. That compares to 53 a year ago. The overall level of inventory did not change much in August, ending the month with 43 homes on the market, versus 44 at the end of July. That was, however, 25% or 14 units less than the 57 homes on the market a year ago. 1.0 month of inventory was available relative to pending sales at the end of August compared to 0.8 months at the end of July.
The average time homes were on the market increased again in August, from 22 days in July to 31 in August. That was about the same as a year ago when homes were available for an average of 30 days.
Analysis by Price Range
The inventory of homes priced under $750,000 was less than a third of where it was just two months ago. There were 13 properties available in this segment at the end of June, eight at the end of July and only four at the end of August. A year ago, 18 of these homes were actively listed. Pending sales remained strong at 11, unchanged from July but two less than a year ago. Inventory relative to pending sales fell from 0.7 months at the end of July to 0.4 months at the end of August. 9% of Redwood City’s inventory and 26% of pending sales were priced under $750,000. That compares to 32% and 33% a year ago, respectively.
20 homes priced from $750,000 to $1,499,999 were actively listed at the end of August, three more than at the end of July. Nine fewer sales went to contract in this price range in August (24) than July (33). Inventory relative to pending sales increased from 0.5 months at the end of July to 0.8 months at the end of August. This price range accounted for 47% of Redwood City’s inventory at the end of August and 57% of its pending sales during the month.
The inventory of homes priced at $1.5 million-plus was unchanged from July at 19. Pending sales fell from nine in July to seven in August. 2.7 months of inventory was available at the end of August, compared to 2.1 months at the end of July. This segment made up 44% of inventory and 17% of pending sales.