Many sellers entered the Redwood City real estate market in June and drove inventory to its highest level in two years. Pending sales, conversely, dropped 27% from their own two year high in May. Prices softened a little again in June but the average home still sold for more than the list price – just not as far above list as before. Homes did not stay on the market long either, just 17 days on average. The market feels like it is returning to a more “normal” state, where buyers have more options than in recent history and price increases are far less than the double digit increases of the past couple of years,
Median Sales Price
The median sales price in June was $1,377,500, down 5% or $77,500 from May and only $2,500 higher than in June 2015. The average sale in May was for 105% of the list price, down from 106% in May and 111% a year ago. The price per square foot increased $895 in June, up $60 from May’s $835 and $75 from June 2016’s $820.
After the big jump in pending sales last month, we were expecting an increase in closed sales in June but that didn’t happen. 54 sales closed in June, down from 66 in May and 69 a year ago.
Sale Price vs. Pended
Inventory rose by 30 properties in June to end the month with 140, the most here since June 2014. Pending sales fell 27% from their two year high of 68 in May to 50 in June. June’s sales were also 25% lower than a year ago. The increase in inventory and drop in sales increased supply relative to pending sales by more than a month, form 1.6 months at the end of May to 2.8 months at the end of June. A 1.5 month supply was on the market at the end of June 2015.
Days to Sell
The homes that sell here are still going quickly, only 16 days on average. That’s one less day than in May and seven less days than a year ago.
Analysis by Price Range
Under $1 million
The inventory of homes priced under $1 million increased in June, while inventory declined. 24 homes were actively listed at the end of June, seven more than at the end of May. 13 sales went to contract during June, four less than in May. That drove supply up from 1.0 month at the end of May to 1.85 months at the end of June. 17% of Redwood City’s inventory was in this segment, as well as 26% of pending sales.
$1 million to $1,749,999
69 homes priced from $1 million to $1,749,999 were available for sale at the end of June, an increase of 15 over May. 49% of all inventory was in this price range. 12 less sales went pending in June (25) than in May (37). A 2.8 month supply was on the market at the end of June, up from 1.5 months at the end of May. This price range accounted for 49% of inventory and 50% of pending sales.
$1.75 million or over
In the $1.75 million-plus category, 47 homes were actively listed at the end of June, 12 more than at the end of May. Those 47 properties represented a third of the city’s inventory. Pending sales dropped by two from May to 12 in June, accounting for 24% of total sales. A 3.9 month supply of these homes was available at the end of June, up from 2.8 months at the end of May.
Check out these other Real Estate Market Conditions Reports for June 2016: