- Market cools a little
- Price indicators fall – but still high
- Inventory falls
- Homes on market 18 days
Make no mistake, the Redwood City real estate market is still very hot – it’s just a little less so than last month. After setting a record last month, the median sales price (and other price indicators) fell a little in May. Closed sales were down sharply, while pending sales increased. Inventory remains very low and it doesn’t take long for a home to sell here.
The median sales price in June was $1,387,500, down 6% ($87,500) from $1,475,000 in May, which was an all-time record high. June’s median sales price was still 16% or $187,500 higher than a year ago. The price per square foot slipped $9 from May to $832 in June. One year ago, the price per square foot was $150 lower at $673. And while the ratio of the sales price to the list price slipped 2% from May, June’s sales were still nearly 12% above the average list price.
25 fewer sales closed in June (38) than in May (63), a 40% drop. June also had 11 fewer closed sales than did June 2104.
I want to make note of the fact that late in each of the past several months, pending sales and inventory numbers have been restated (pending sales downward and inventory upward). That being said, 101 sales went pending in June, an increase from 61 in May. Inventory fell from 90 at the end of May to 58 at the end of June. A 1.5 month supply at the end of May was cut to a 0.6 month supply at the end of June.
The average property was listed for 18 days in June, up from 13 in May and 24 days a year ago.
Analysis by Price Range
The low end of the market continues to account for an ever-shrinking share of inventory and sales, as rising prices move more and more homes up the scale. In June, 17% of Redwood City’s inventory was priced below $750,000. Contrast that to 40% to 50% a few years ago. 10 homes were available for sale in this segment at the end of June, two less than in May. 10 sales went pending in June, four more than in May. Supply was cut from 2.0 months at the end of May to 1.0 month at the end of June.
The $750,000 to $1,499,999 price range accounted for 57% of Redwood City’s inventory at the end of June and 63% of its pending sales during the month. Inventory was cut from 53 at the end of May to 33 at the end of June. Pending sales rose from 35 in May to 64 in June. That cut supply from 1.5 months at the end of May to about two weeks at the end of June.
As little as two years ago, homes priced at $1.5 million or more made up well less than 10% of Mountain View’s total sales. That number is closer to 30% now. 27 sales went to contract in this segment in June, up from 20 in May. 15 homes were actively listed at the end of June, down from 25 at the end of May. A 0.6 month supply was on the market at the end of June, about half of May’s 1.25 months.