- Market keeps moving along
- Seeing demand in all market segments
- Price indicators up slightly
- Inventory still low – but not falling as sharply as some other communities
The Redwood City real estate market is doing its best to forestall the typical winter slowdown. While demand remains uneven, buyers in all price levels of the market continue to show a willingness to move quickly if the opportunity is right for them. The best evidence for that is that the homes that sell tend to do so quickly. Price indicators were steady in November and may be leveling off. I would expect prices to continue to rise but we may not see the double digit year-over-year increases we have come to expect over the past few years. Inventory, while low, held up fairly well in November, particularly when compared to some of the surrounding communities. The fact that the Fed is likely to raise interest rates soon may be causing some uncertainty but I am not seeing much impact on the market right now.
The median sales price in November was $1,281,000, up 2.5% from $1,250,000 in October. November’s median was 7.5% higher than a year ago. On average November’s sales were for 107% of the list price, a little better than October’s 106% and November 2014’s 105.5%. The price per square foot increased from $773 in October to $799 in November. That compares to $728 a year ago.
40 sales closed in November, four less than in October and three less than a year earlier.
Both inventory and pending sales fell in November, but not by much. Inventory dropped from 101 homes at the end of October to 95 at the end of November. November’s inventory was 23 units more than November 2014’s. 43 sales went to contract in November, two less than in October. That left the supply relative to sales little changed at about 2.2 months.
The homes that sold in November were on the market an average of only 16 days, little changed from October 17 days. One year ago, homes were available for 25 days, on average.
Analysis by Price Range
29 properties priced under $1 million were actively listed at the end of November, two less than at the end of October. Pending sales fell by four, from 21 in October to 17 in November. A 1.7 month supply was on the market at the end of November, up a little from 1.5 months at the end of October. 31% of Redwood City’s inventory and 40% of its pending sales were in this segment.
Pending sales of homes priced from $1 million to $1,749,999 actually increased by two from October to 19 in November. That was 44% of total sales. The inventory of these homes fell by one to end November with 41, 43% of the total. Supply increased to 2.5 months at the end of November from 2.2 months at the end of October.
In the market for homes priced at $1.75 million or more, inventory fell by three units to end November with 25. Pending sales were unchanged at seven. Supply relative to pending sales fell from 4.0 months at the end of October to 3.6 months at the end of November. This segment accounted for 26% of the city’s inventory and 16% of its pending sales.