Redwood City Market Update January 2014
The median sales price in Redwood City has fallen for each of the past two months but has remained over $1 million during that period. The available inventory of single family detached homes here is at its lowest level in at least 11 years. Some highlights of the current market include:
– Inventory lowest in at least 11 years – 18 units at the end of December
– Prices rising – median sales price over $1 million for the past three months
– Days on market down from prior years but on the rise recently
– Pending sales lowest since January 2009
December was the low point for inventory, with only 18 homes actively listed. That number rose to 25 at the end of January. Both numbers were well below year-ago levels (33 for December 2012 and 28 for January 2013). 25 sales went pending in January, the fewest in five years (24 in January 2009). Sales have fallen for eight consecutive months. Closed sales have also fallen for the past five months and January’s 34 were the fewest since February 2013, when there were 32. The following chart shows the relationship between inventory and sales that went pending.
The median sales price for January was $1,005,000, the third consecutive month it has been over $1 million. That was down slightly from December’s $1,027,500 but was $180,700 (22%) higher than January 2013’s $824,300.
The average price per square foot has steadily increased the past few years and was $625 in January, which was 17% higher ($91) than a year ago ($534). Homes are also selling for more relative to list price. The average sales price has been more than the average list price for every month since April 2012. The ratio was 106% in January, compared to 101% in December and 102% in January 2013. The average sale in 2013 was for 105% of the list price, compared to 101% in 2012.
For the past three months, homes have spent an average of 25 days on the market, compared to 25 days, on average, for the six months before that. January’s closed sales were on the market for an average of 34 days, the first time the monthly average was over 30 months for three consecutive months since March. There has not been much change in the number of months of inventory here. That number has stayed around two months for the past two years.
Price Range Analysis
Homes priced under $750,000 made up 36% of Redwood City’s inventory at the end of January on 28% of the sales that went pending during the month. Inventory fell to a low of only five units at the end of December but added four in January to end with nine, which was still historically low for this price segment.
Homes priced from $750,000 to $1,499,999 accounted for the biggest portion of sales and inventory through most of 2013 but have seen both numbers skid the past few months. 28% of Redwood City’s inventory was in this price range at the end of January, compared to 57% at the end of June. This segment accounted for 28% of the sales that went pending during January, compared to 70% in June. As you can see in the chart below, inventory and sales have fallen steadily since May. There has been less than a month of available inventory in this price range for all but one month in the past year.
Nine homes priced at $1.5 million or more were actively listed at the end of January, the same number as in December and one more than a year ago. Seven sales went pending priced at $1.5 million or more during January, up from three in December and one a year ago. 36% of Redwood Cities inventory was in this segment at the end of January and 24% of the sales that went pending were in this price range during January.