- Surprisingly strong heading into autumn
- Demand spotty
- Price indicators mixed
- Inventory still low
The real estate market in Redwood City was surprisingly strong in October as we enter what is typically a period when demand slackens heading into the fall and winter. Pending sales shows resilience as buyers, while a bit more picky than earlier in the year, continued to demonstrate a willingness to act when they find the right property. Demand was somewhat spotty, depending on location, price and individual home appeal. Inventory remained low but did not fall much.
October’s median sales price was $1.25 million, off $82,500 from September’s $1,332,500. The median price was, however, 15% higher than October 2014’s $1,090,000. The price per square foot fell for the second straight month, from $827 in September to $773 in October. It was the first time since January that the price per square foot was below $800. A year ago, it was $690. Homes sold for 106.2% of their list price, on average, in October, up slightly from 105.6% in September. The ratio had been over 110% all year prior to September. It was 106.7% in October 2014.
After increasing last month, closed sales fell 14 units to 40 during October. That compares to 52 a year earlier.
91 properties were actively listed at the end of October, down five from 96 at the end of September but three more than a year ago. Pending sales fell three units to 49 during October, versus 52 in both September this year and October 2014. Inventory relative to sales was little changed at about 1.85 months.
An indication of the demand (at least for some homes) is that the average closed sale in October was on the market an average of only 17 days. That is less than September’s 24 days and October 2014’s 25 days.
Analysis by Price Range
Demand continues to be strongest for homes priced under $1 million. Inventory in this segment fell from 31 in September to 23 in October, which was a quarter of all inventory in the city. 22 sales went to contract during October (45% of all sales), up from 16 in September. A one month supply was on the market at the end of October, about half of what we had at the end of September.
42 homes priced from $1 million to $1.75 million were actively listed at the end of October, one more than at the end of September. Pending sales fell from 27 in September to 19 in October. That bumped the supply relative to pending sales to 2.2 months at the end of October. This price range accounted for 46% of inventory and 39% of sales.
The $1.75 million-plus market segment saw inventory increase slightly and pending sales increase slightly. Inventory went form 24 at the end of September to 26 at the end of October, while pending sales increased by one to eight units during October. A 2.7 month supply was available at the end of October, down from a 3.3 month supply at the end of September.