- Sales buoyant
- Even with plunging inventory
- Price indicators mixed but strong
- Homes on market longer
The Redwood City real estate market slowed some in December but not as much as in most of the surrounding area. Both pending and closed sales were down from November but not as much as would normally be expected for December. That tells us how strong demand is here, especially in light of other factors adding uncertainty to the market (i.e. the Federal Reserve increased interest rates, the global economy is in flux and the looming presidential election). Price indicators were mixed in December, with the median sales price rising but other statistics falling. Homes also took longer to sell in December.
December’s median sales price was $1,462,500, 14% higher than November’s $1,282,000. That was the second highest median sales price on record here, topped only by May’s $1,475,000. December was also 13% higher than a year ago. The price per square foot has declined in three of the past four months and was$792 in December, $6 less than in November but still $55 higher than in December 2014. The sales price to list price ratio was lower than at any time since January. However, the average homes still sold for 104% of the list price in December. That compares to November’s 106% and December 2014’s 107%.
There were three less closed sales in December (38) than in November (41) but December matched December 2014’s 38 sales.
With only 47 homes actively listed at the end of December, inventory was at its lowest point in a year. During December it was nearly cut in half, from 89 at the end of November. One year ago, 44 properties were on the market. Pending sales were surprisingly strong for December. 41 sales went to contract during the month, four less than in November but four more than a year ago. As a result in the big drop in available inventory, supply relative to pending sales was cut to 1.1 months at the end of December from 2.0 months at the end of November.
Time on the market doubled in December, from 17 days in November to 34. That was the longest time since December 2013’s 44 days. One year ago, the average time on the market was 27 days.
Analysis by Price Range
The inventory of homes priced under $1 million fell from 29 at the end of November to 16 at the end of December. That was 34% of all homes for sales in Redwood City. Pending sales fell by two, from 17 in November to 15 in December. 34% of all pending sales in Redwood City were of homes sold for less than $1 million. A 1.1 month supply was on the market at the end of November, down from a 1.7 month supply at the end of December.
About half as many homes were actively listed in the $1 million to $1,749,999 price range at the end of December (21) as at the end of November (40). Pending sales actually increased by one to 19 in December. This price range accounted for 45% of all inventory and 46% of sales. Inventory relative to pending sales was cut from 2.2 months at the end of November to 1.1 months at the end of December.
$1,745,000-plus homes made up 21% of inventory and 17% of sales. Seven sales went pending during December, three less than in November. Inventory fell from 20 at the end of November to 10 at the end of December. Supply was cut from 2.0 months at the end of November to 1.4 months at the end of December.