- Inventory up but still low
- Closed sales lowest in six years
- Pending sales lowest in five years – again
- Prices decline after increasing for three months
Redwood City got a nice and much needed bump in inventory in January. However, it was still the lowest inventory level in a year – if we ignore December. The extremely low inventory level continued to crimp sales, which were lower than they have been in several years.
Prices have been rising here on strong demand and low inventory. I doubt January is the beginning of the end of that trend but prices did fall. January’s median sales price was $1,132,500, which was 9% or $117,500 below December’s $1,250,000. January was 5% higher than a year ago. The price per square foot fell from $737 in December to $705 in January, which was still 13% higher than a year ago. The sales price to list price ratio was 102.5%, the first time in over a year that it has been below 103%. The ratio was 197% in December.
Closed sales fell 15 units from 37 in December to 22 in January. We have to go back to January 2009 to find fewer closed sales in a month (12). There were 36 closed sales in January 2014.
Redwood City added 11 homes to inventory in January, ending the month with 20, compared to nine at the end of December and 25 a year ago. 21 sales went to contract in January, the fewest in five years. 23 sales went pending in December and 28 in January 2014. The increase in inventory bumped the supply relative to pending sales from 0.4 months at the end of December to 0.95 months at the end of January.
There has not been much change for the past six months in how long homes are staying on the market. In January, it was 29 days, compared to 27 in December and 31 a year earlier.
Analysis by Price Range
Inventory increased and pending sales fell in the market for homes priced under $750,000. Four properties were actively listed in this segment at the end of January, up from one at the end of December. Pending sales fell by two, to three in January. A 1.3 month supply was available at the end of January, compared to 0.2 months at the end of December. 20% of Redwood City’s inventory and 14% of its pending sales were priced below $750,000. 0.2 1.3
Inventory took the biggest jump in the $750,000 to $1,499,999 market segment, from three at the end of December to eight at the end of January. That was 40% of Redwood City’s total homes for sale. Pending sales increased by one, from 14 in December to 15 in January, which was71% of the city’s total. Inventory relative to pending sales increased from December’s 0.2 months to 0.5 months at the end of January.
Inventory also increased in the $1.5 million and up category, from five at the end of December to eight at the end of January. Pending sales fell by one unit to three during January. The result was a 2.5 month supply at the end of January, more than double December’s 1.3 months. This segment made up 40% of Redwood City’s inventory and 14% of its pending sales.