Cynthia’s Weekly Redwood City Market Update for the Week of 3.7.16

8/19/2019 Cynthia’s Weekly Redwood City Market Update for the Week of 3.7.16

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Local Real Estate Market Update Redwood City

The median list price in RedwoodCity this week is $1,498,000. The 38properties have been on the market foran average of 17 days.

The Market Action Index has beentrending down lately, while inventory is climbing. These trends imply a

weakening market.

This Week

In the last few weeks the market has

achieved a relative stasis point interms of sales to inventory. However,inventory is sufficiently low to keep usin the Seller's Market zone so watchchanges in the MAI. If the market heatsup, prices are likely to resume anupward climb.

Supply and Demand

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

Top/First $2,668,000 3,720 0.25 - 0.50acre

4.0 4.0 10 9 2 1 13

Upper/Second $1,698,000 2,130 4,501 –6,5000 sq. ft.

3.0 3.0 60 9 3 1 18

Lower/Third $1,319,475 $1,726 4,501 –6,500 sq. ft.

3.0 2.2 60 10 6 4 7

Bottom/Fourth $809,500 1,135 4,501 –6,500 sq. ft.

3.0 1.0 70 10 5 4 28

Characteristics per Quartile

Update for the week of March 7, 2016


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While this week the median didn't fluctuate much, we are relatively close to themarket's price high-point. A persistent drop of the Market Action Index into theBuyer's zone will be a leading indicator of the price strength subsiding.

Median Price

Prices have settled at a price plateau across the board. Prices in all four quartiles are

basically mixed. Look for a persistent shift (up or down) in the Market Action Indexbefore prices move from these current levels.

Quartile Price

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$1,600,000 -



In a market where prices are rising fairly consistently, price per square foot is essentially flat. This

often implies that new homes coming on the market are pricier, and also larger than older homes. Asa result the value one can buy stays the same.

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 gaugewhether buyer interest is keeping up with available supply.

Inventory of Properties Listed for Sale



The Redwood City market is currently quite strongly in the Seller's Advantage zone (greater than30). The 90-day Market Action Index stands at 64.47; indicating very little supply relative to thedemand.

Market Action Index

Not surprisingly, all segments in the market are showing high levels of demand. Watch thequartiles 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 17 days. Half of the listingshave come newly on the market in the past 7 or so days.

Days on Market

It is not uncommon for the higher priced homes in an area to take longer to sell thanthose in the lower quartiles.

Days on Market per Quartile

Documents

Cynthia’s Weekly Redwood City Market Update for the Week of 3.7.16