Redwood City

Redwood City Market Conditions September 2015

  • Median sales price rebounds some
  • Other price indicators fall
  • Closed sales increase sharply
  • Inventory still low

As we enter autumn, we are beginning to see the typical fall slowdown in the Redwood City real estate market. Inventory continues to constrain sales and demand is still very high. However, the pace is less frantic and multiple offers are less common, particularly for homes priced in the upper end of their price band. We are seeing buyers “revisit” properties as they realize inventory is tight and what they saw yesterday just may be the best property that is on the market today.

Price indicators showed mixed results in September, with the median sales price increasing after declining the past three months but other statistics falling. The median sales price in September was $1,332,500, 7% or $85,000 higher than August’s $1,247,500. September’s median sales price was
42% or $394,500 higher than September 2014’s abnormally low $938,000. Note that September 2014 was the last time the median sales price was below $1 million.

Sales in September closed for about 106% of the average list price, the first time since January that this ratio has been below 110%. It was 112% in August and 106% a year ago. The price per square foot fell $24, from $851 in August to $827 in September. That compares to $783 a year ago.

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54 sales closed in September, up 35% from 40 in August and 39% from 39 in September 2014.

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Note that in each of the past several months, pending sales and inventory numbers have been restated (pending sales downward and inventory upward) the following month, so we need to take some caution with the following data.

I am particularly skeptical of Redwood City’s numbers for September. Inventory decreased 20 units, from 95 at the end of August to 75 at the end of September. Pending sales show an increase of 27 homes 42 in August to 69 in September. I would expect fairly large adjustments to these numbers when the final data is available.

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Homes were on the market for an average of 26 days in September, up from 14 days in August. Properties were also available for an average of 26 days a year earlier.

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Analysis by Price Range

The inventory of homes priced under $1 million fell from 36 at the end of August to 23 at the end of September. That was 31% of Redwood City’s total inventory. 32% of the city’s pending sales were in this category. 22 sales went to contract in September, the same number as in August.

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In the $1 million to $1.75 million price range, pending sales increased form 16 in August to 36 in September while inventory fell from 39 at the end of September to 30 at the end of August. This price range accounted for 40% of inventory and 52% of pending sales.

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22 properties priced at $1.75 million or more were actively listed at the end of September, compared to 20 at the end of August. Pending sales increased from four in August to 11 in September. 29% of inventory and 16% of pending sales were in this segment.

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