cynthia’s weekly redwood city market update – 7/28/15
DESCRIPTION
The median list price in Redwood City this week is $1,298,000. The57 properties have been on the market for an average of 30 days. The Market Action Index has beentrending down lately, while inventoryand days-on-market are climbing. The trends imply a weakening market.TRANSCRIPT
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Median Price List $1,298,000
Average List Price $1,786,995
Asking Price Per Square Foot $731
Average Days on Market (DOM) 30
Inventory of Properties Listed 57
Most Expensive Listing $25,000,000
Least Expensive Listing $349,900
Average Age of Listing 60
Percent of Properties with Price Decrease 14%
Percent Relisted (reset DOM) 9%
Percent Flip (price increased) 2%
Median House Size (sq. ft.) 1,695
Median Lot Size 6,501 – 8,000 sq. ft.
Median Number of Bedrooms 3
Median Number of Bathrooms 2
Local Real Estate Market UpdateRedwood City
Report for the week of July 20, 2015 Trend
The median list price in Redwood City this week is $1,298,000. The57 properties have been on the market for an average of 30 days.
The Market Action Index has beentrending down lately, while inventoryand days-on-market are climbing. The trends imply a weakening market.
This Week
Altos Research Value StatisticsMarket Action Index Strong Seller’s 74.1
The Market Action Index answers the question "How's the Market?" by measuring the current rate of sale versus the amount of the inventory. Index above 30 implies
a seller's advantage. Below 30, conditions give the advantage to the buyer.
The market has started cooling andprices have been flat for severalweeks. Since we're in the Seller'szone, watch for changes in MAI. Ifthe MAI resumes it's climb, priceswill likely follow suit. If the MAIdrops consistently or falls into theBuyer's zone, watch for downwardpressure on prices.
Supply and Demand
QuartileMedian
PriceSq. Ft. Lot Size Beds Baths Age Inventory New Absorbed DOM
Top/First $1,998,475 2,9150.25 -
0.50 acre4.0 3.5 29 14 3 1 21
Upper/Second $1,447,000 2,0196,501 –
8,000 sq. ft.
3.0 2.2 59 14 7 5 30
Lower/Third $1,041,500 1,6404,501 –
6,500 sq. ft.
3.0 2.0 68 14 5 3 22
Bottom/Fourth $790,000 1,0404,501 –
6,500 sq. ft.
2.0 1.0 69 15 4 5 45
Characteristics per Quartile
The market appears to be hovering around this plateau. Look for a persistent change in the Market Action Index before we see prices deviate significantly from here.
Median Price
Prices have generally settled at a plateau, although Quartile 1 has been trending a bit downward in recent weeks. We'll need to see a persistent shift in the Market Action Index before we see prices across the board move from these levels.
Quartile Price
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Powered by Altos Research LLC | www.altosresearch.com | Copyright ©2005-2014 Altos Research LLC
The value placed on homes continues to increase, despite the fact that prices in general have remained basically flat. These conditions can arise when inventory is light and more, smaller homes have more influence on overall prices.
Price per Square Foot
Inventory has been climbing lately. Note that rising inventory alone does not signal a weakening market. Look to the Market Action Index and Days on Market trends to gauge whether buyer interest is keeping up with available supply.
Inventory of Properties Listed for Sale
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The Redwood City market is currently quite strongly in the Seller's Advantage zone (greater than 30). The 90-day Market Action Index stands at 74.09; indicating very little supply relative to the demand.
Market Action Index
Not surprisingly, all segments in the market are showing high levels of demand. Watch the quartiles for changes before the whole market changes. Often one end of the market (e.g. the high-end) will weaken before the rest of the market and signal a slowdown for the whole group.
Market Action Index per Quartile
Residential house prices are a function of supply and demand, and market conditions can be characterized by analyzing those factors. Watch this index for sustained changes: if the index falls into the Buyer’s
Advantage zone (below 30) for a long period, prices are likely in for a downward correction.
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The properties have been on the market for an average of 30 days. Half of the listings have come newly on the market in the past 14 or so days.
Days on Market
It is not uncommon for the higher priced homes in an area to take longer to sell than those in the lower quartiles.
Days on Market per Quartile