Redwood City Market Conditions September 2014
- Median sales price falls below $1 million
- Pending sales flat
- Inventory increases across all market segments
Most price indicators fell in September, with the median sales price dropping below $1 million for the first time since April. Close sales fell, while pending sales were mostly flat. Inventory increased but homes were on the market fewer days.
September’s median sales price was $934,000, which was $181,000 or 16% lower than August’s $1,115,000. It was $6,000 over the median sales price from a year ago ($928,000). The median price has now been higher than a year earlier for 31 consecutive months.
The average price per square foot increased $12 or 2% from $666 in August to $678 in September. That was $52 or 8% higher than September 2013’s $626. September’s closed sales were for an average of 105%, compared to 107% in August and 105% a year ago.
Eleven fewer sales closed in September (36) than in August (47), a 23% decline. September’s sales were also 27% or 13 units lower than the 49 that closed in September 2013.
56 homes were actively listed at the end of September, 30% more (13 units) than August’s 43 but one less than a year ago. 41 sales went pending during September, one less than in August and 12 less than a year earlier. There was 1.4 months of inventory on the market at the end of September relative to pending sales, up from 1.0 month at the end of August.
September’s pending sales were listed for an average of 23 days, down from 31 days in August and 28 days a year ago.
Analysis by Price Range
After falling for the past two months, the inventory of homes priced under $750,000 regained some ground, increasing from four properties at the end of August to nine at the end of September. That represented 16% of Redwood City’s total. Pending sales, on the other hand were cut by more than half, from 11 in August to five in September. 12% of Redwood City’s pending sales in September were in this segment. The increased supply and decreased sales resulted in month-end September having 1.8 months of inventory in this segment, up from 0.4 months at the end of August.
Five homes were added to inventory in the $750,000 to $1,499,999 price range, ending September with 25. A year ago, 23 homes were actively listed in this segment. Pending sales increased by five units also, from 24 in August to 29 in September. 32 sales went to contract a year earlier. Inventory relative to pending sales was relatively unchanged at about 0.85 months. 71% of the pending sales in September were in this price range, along with 45% of inventory.
In the upper end of the market (homes priced at or above $1.5 million), inventory increased three homes in September to 22. Pending sales were unchanged from August with seven. This segment accounted for 39% of Redwood City’s inventory and 17% of its pending sales.
