The Redwood City real estate market continues to move toward normalization. Homes are still selling quickly, especially those priced under $1.5 million and many receive multiple offers. However, where they would have received six or more offers as recently as this past spring, they are now getting perhaps two to four. More homes are on the market than a year ago and buyers are more discerning. The market is more balanced, away from the frenetic sellers’ market of the past few years, with rapidly increasing prices. The current environment provides great opportunities for both buyers and sellers.
Median Sales Price
There is no question that the market here remains very strong. The biggest indicator of that is the fact that the average sales in July was for 105.5% of the list price, down slightly from 104.8% in June. However, a year ago, homes sold for 112% of their asking price. For the second time in three months, the median sales price was below the level of a year earlier. July’s median was $1,325,000, 1% below July 2015’s $1,332,000 and 4.5% below last month’s $1,337,500. The price per square foot, while 7% higher than a year ago, did slip $14 from June’s $895 to $881 in July.
Closed sales fell for the second straight month, from 54 in June to 49 in July. By comparison, 63 sales closed in July 2015.
For Sale vs. Pending
Inventory was 33 units higher at the end of July that a year ago. 12 less homes were actively listed at the end of July than the end of June. Pending sales increased from 57 in June to 60 in July, which was still two less than in July 2015. A 2.2 month supply relative to pending sales was available at the end of July, up from 1.9 months at the end of June and 1.32 months a year ago.
Days to Sell
Homes took longer to sell in July than in the prior three months, an average of 24 days. That compares to 16 days in June and 23 days a year ago.
Analysis by Price Range
Under $1 million
The inventory of homes priced under $1 million was cut nearly in half, from 21 at the end of July to 11 at the end of June. That was 10% of Redwood City’s total. Pending sales in this segment increased by four to 18 in July, 30% of all sales here. That cut supply from 1.5 months at the end of June to 0.6 months at the end of July.
$1 million to $1.749 million
63% of inventory and 51% of sales were price from $1 million to $1,749,000. 72 homes were actively listed at the end of July, up from 67 at the end of June. 31 sales went to contract in July, two more than in June. A 2.3 month supply was on the market at the end of July, unchanged from June.
$1.75 million or over
Both sales and inventory of homes priced at $1.75 million and up decreased some in July. Inventory fell seven units, to end July with 31. Pending sales fell by three to 11 in July. This segment accounted for 27% of inventory and 17% of sales. Supply was little changed at 2.8 months.
Check out these other Real Estate Market Conditions Reports for July 2016: