- Median sales price falls for third straight month
- But sales price to list price ratio increases
- Closed sales fall
- Inventory stays low
There has been an interesting dynamic in the Redwood City real estate market the past few months. The median sales price has been declining while the sales price to list price ratio and price per square foot have been increasing. It has largely been a mix issue, with more lower priced homes selling, driving the median price down. However, strong demand has resulted in multiple offers and higher prices relative to the list price. The price per square foot is generally higher for lower priced homes, as well.
July’s average closed sale was for about 113% of the list price, up from 112% in July and 107% a year ago. The price per square foot increased $26, from $825 in July to $851 in August. That was $172 higher than August 2014’s $679. Moving in the other direction, the median sales price fell 6% or $84,500, from $1,332,000 in July to $1,247,500 in August, which was still 4% higher than a year ago.
Closed sales dropped by a third, from 63 in July to 40 in August, the fewest since February’s 24. 53 sales closed in August 2014.
Note that in each of the past several months, pending sales and inventory numbers have been restated (pending sales downward and inventory upward) the following month, so we need to take some caution with the following data. As we go to press, inventory at the end of August is shown as falling a little and pending sales during the month increased. Once these numbers are adjusted, the opposite is likely to be true. 70 properties are shown as actively listed at the end of August, down from 78 at the end of July. 65 sales went to contract in August, three more than in July.
Average days on market fell from 23 in July to 14 in August. One year ago, homes were listed for an average of 28 days.
Analysis by Price Range
We have changed the price ranges for Redwood City beginning this month. Due to the sharp rise in prices over the past year, there have been fewer and fewer homes price below $750,000. The old ranges were under $750,000 million, $750,000 – $1,499,999 million and $1.5 million-plus. The new ranges are under $1 million, $1million to $1,749,999 million and $1,750,000-plus. The new ranges better reflect the Redwood City real estate market at this time.
30 homes priced under $1 million were actively listed at the end of August, down from 35 at the end of July. 26 sales went pending during August, two less than in July. August’s inventory represented at 1.1 month supply, down from a 1.3 month supply at the end of July. 43% of Redwood City’s inventory and 40% of its pending sales were priced under $1 million.
In the $1 million to $1,749,999 price range, 30 sales went to contract in August, representing 46% of total sales. 25 homes were available for sale, 36% of the city’s total. A 1.15 month supply was on the market at the end of August, compared to 1.25 months at the end of July.
The number of both pending sales and inventory fell in August in the $1.5 million market segment. Pending sales fell from 12 in July to nine in August. August’s sales were 14% of the total. Inventory decreased by two units to 15 at the end of August. Those 15 properties were 15% of Redwood City’s total inventory and represented a 1.7 month supply.