Cynthia’s Weekly Redwood City Market Update for the Week of 12.1.15

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Local Real Estate Market UpdateRedwood City

The median list price in Redwood City this week is $1,498,000. The77 properties have been on themarket for an average of 39 days.

Inventory has been lightening latelyand the Market Action Index has beentrending up. Though days-on-marketis increasing, these are mildly positiveindications for the market.

This Week

In the last few weeks the market hasachieved a relative stasis point interms of sales to inventory.However, inventory is sufficientlylow to keep us in the Seller's Marketzone and prices have recentlyresumed upward pressure.

Supply and Demand

Quartile Median Price Sq. Ft. Lot Size Beds Baths Age Inventory New Absorbed DOM

Top/First $2,498,000 3,260 0.25 - 0.50 acre 4.0 3.5 16 19 3 0 41

Upper/Second $1,685,000 2,125 4,501 –6,5000 sq. ft. 3.0 2.5 57 19 3 3 31

Lower/Third $1,395,000 1,810 4,501 –6,500 sq. ft. 3.0 2.0 54 19 5 5 33

Bottom/Fourth $928,500 1,255 4,501 –6,500 sq. ft. 3.0 1.8 70 20 5 5 51

Characteristics per Quartile

Update for the week of December 1, 2015

While this week the median didn't fluctuate much, prices continue to sit at all time highs. A persistent drop of the Market Action Index into the Buyer's zone will be a leading indicator of the price strength subsiding.

Median Price

Pricing in the upper-half of the market (Quartiles 1 and 2) has been relatively flat recently while the lower-half prices have remained strong. Quartiles 3 and 4 have been increasing in the last few weeks. Look to the Market Action Index Quartile breakdown for a leading indicator on which group will lead the market in the near future.

Quartile Price



This is a market where watching the value metrics (like price per square foot) can provide insight that you don't get at first glance. Despite the fact that home prices are rising fairly consistently, the price per square foot of homes listed is declining a bit. Often this can be attributed to new and remodeled homes on the market. Buyers in the area are paying more but also getting more for their money.

Price per Square Foot

Inventory has been falling in recent weeks. Note that declining inventory alone does not signal a strengthening market. Look to the Market Action Index and Days on Market trends to gauge whether buyer interest is changing with the available supply.

Inventory of Properties Listed for Sale


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 57.09; 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 characterizedby 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.


The properties have been on the market for an average of 39 days. Half of the listings have come newly on the market in the past 28 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

Documents

Cynthia’s Weekly Redwood City Market Update for the Week of 12.1.15