Redwood City

Redwood City Market Conditions March 2016

  • Sales nearly triple
  • Inventory continues climb
  • Sales strong in all price ranges
  • Prices higher
  • Price per square foot at record high

The Redwood City real estate market officially emerged from winter in March, with a huge gain in pending sales and a more modest increase in inventory. Every segment shared in the activity, with sales strong across all price ranges. Every indicator of price rose during March, with the price per square foot setting a new record, rising above $900 for the first time.

March’s price per square foot was $922, 11% higher than $834 in February and 9% above March 2015’s $846. The median sales price rose 6% ($90,000), from $1,410,000 in February to $1.5 million in March. That was 10% higher than March 2015’s $1,363,000. On average, homes sold for nearly 109% of their list price in March, the highest ratio since August. The ratio was 104% in February and 113% a year ago.

Redwood City-Market-Conditions-MAR-01After declining for five straight months, closed sales finally posted a gain in March, from 22 in February to 35 in March. That was still well below the 52 closed sales from a year earlier. However, with the big increase in pending sales, closed sales are sure to rise next month.

Redwood City-Market-Conditions-MAR-0261 sales went pending in March nearly triple February’s 21 and ahead of the pace of a year ago, when 50 sales went to contract. Inventory increased form 74 units at the end of February to 90 at the end of March, a 22% gain. Inventory lagged just behind March 2015’s 92 homes for sale. With sale rising faster than inventory, supply relative to pending sales was cut by more than half, from 3.5 months at the end of February to 1.5 months at the end of March.  

Redwood City-Market-Conditions-MAR-03The average time on the market has been slowly descending here for the past three months and fell two days in March to 26 days. One year ago, homes were on the market an average of 14 days.

Redwood City-Market-Conditions-MAR-04Analysis by Price Range

Pending sales of homes price under $1 million nearly tripled, from seven in February to 19 in March. Inventory managed a very small increase of one unit to end February with 24 homes actively listed. 27% of Redwood City’s inventory and 31% of its pending sales were in this segment. A 1.3 month supply was available at the end of March, down from 3.3 months at the end of February.

Redwood City-Market-Conditions-MAR-05The $1 million to $1,749,000 price range had the biggest gains in both inventory and sales during March. Pending sales tripled, from 10 in February to 30 in March, accounting for 49% of all pending sales here. Inventory increased a more modest but significant 33%, from 27 at the end of February to 36 at the end of March. 40% of Redwood City’s inventory was in this category. Supply relative to sales shrank from 2.7 months at the end of February to 1.2 months at the end of March

Redwood City-Market-Conditions-MAR-06Pending sales of homes priced from $1.75 million and up also tripled in March, from February’s four to 12. Inventory increased six units to end March with 30. This segment accounted for a third of all inventory and 20% of pending sales. The faster rise in sales dropped supply from 6.0 months at the end of February to 2.5 months at the end of March.

Redwood City-Market-Conditions-MAR-07