- Sales jump
- Inventory falls
- Lower end inventory has biggest decline
- Prices soften a little
Both pending and closed sales spiked in May as buyers took advantage of the increase in inventory in April. Most of the homes that sold during May did so quickly (17 days on average). The jump in closed sales drove inventory lower in May. We are still seeing the same dynamic that we described last month, with homes priced aggressively low getting more offers and selling quickly. Pricing indicators were mixed in May but, overall, showed a softening from April. The market is really very strong, just not the red hot market we grew accustomed to last year at this time (or even six months ago).
May’s median sales price increased 5.6% or $77,500 from $1,377,500 in April to $1,455,000. May was only the second month during the past 20 months that had a median sales price lower than that of a year earlier (down 1.4% from May 2014). The price per square foot fell for the second straight months, from $878 in April to $835 in May, a 5% drop. One year ago, the price per square foot was $832. Homes sold in May received 106% of the offer price, down from 108% in April and 114% a year ago.
66 sales closed in May, the most since June of last year. May’s sales were 50% higher than April’s 44 and three more than May 2015’s 63.
Pending sales also took a big jump in May, increasing 35%. 58 sales went to contract during May, 15 more than in April but three less than a year ago. Inventory fell by 19 units, from 119 at the end of April to 100 at the end of May. That was also five more homes for sale than at the end of May 2015. The big increase in pending sales and drop in inventory meant supply dropped by a month, from 2.7 months at the end of April to 1.7 months at the end of May. One year ago, there was a 1.6 month supply.
Days on the market remained below 20 days for the second straight month, at 17. April’s sales were on the market for 14 days and May 2015’s for 13.
Analysis by Price Range
While the inventory of homes priced under $1 million fell by five units in May, pending sales remained steady at 15, unchanged from April. 18 homes were actively listed at the end of May. Supply fell from 1.5 months at the end of April to 1.3 months at the end of May. 18% of Redwood City’s inventory and 26% of its pending sales were priced under $1 million.
Homes priced from $1 million to $1,749,999 had a big increase in pending sales and a large drop in inventory during May. Inventory fell by 15 units, from 60 at the end of April to 45 at the end of May. Pending sales increased by 14, from 19 in April to 33 in May. That cut supply relative to sales by more than half to 1.4 months. This segment accounted for 45% of inventory and 57% of pending sales.
There was not as much change in the upper end of the market (homes priced at $1.75 million or more). Inventory and pending sales of these homes both increased by one unit. 37 homes were actively listed at the end of May, 37% of the city’s total. 10 sales went to contract during May, 17% of all pending sales. A 3.7 month supply was on the market at the end of May, down slightly from 4.0 months at the end of April.