Cynthia’s Weekly Redwood City Market Update

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Median Price List $1,399,475

Average List Price $1,706,580148

Asking Price Per Square Foot $686

Average Days on Market (DOM) 35

Inventory of Properties Listed 48

Most Expensive Listing $13,990,000

Least Expensive Listing $116,000

Average Age of Listing 53

Percent of Properties with Price Decrease 15%

Percent Relisted (reset DOM) 6%

Percent Flip (price increased) 4%

Median House Size (sq. ft.) 1,720

Median Lot Size 6,501 - 8,000 sq. ft.

Median Number of Bedrooms 3.5

Median Number of Bathrooms 2

Local Real Estate Market UpdateRedwood City

Report for the week of May 11, 2015 Trend

The median list price in Redwood City this week is $1,399,475. The48 properties have been on the market for an average of 35 days.

Inventory and days-on-market areboth trending higher recently. However, the improving Market Action Index implies some increaseddemand will temper the negativetrends.

This Week

Altos Research Value StatisticsMarket Action Index Strong Sellers 77.1

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.

Home sales continue to outstripsupply and the Market Action Indexhas been moving higher for severalweeks. This is a Seller's market sowatch for upward pricing pressure inthe near future if the trend continues.

Supply and Demand

QuartileMedian

PriceSq. Ft. Lot Size Beds Baths Age Inventory New Absorbed DOM

Top/First $2,297,000 3,4950.25 -

0.50 acre4.0 3.5 14 12 4 4 27

Upper/Second $1,549,000 2,1526,501

8,000 sq. ft.

3.5 2.5 58 12 6 5 49

Lower/Third $1,198,000 1,5854,501

6,500 sq. ft.

3.0 2.0 68 12 3 7 21

Bottom/Fourth $662,000 1,2804,501

6,500 sq. ft.

3.0 1.5 74 12 3 5 43

Characteristics per Quartile

Prices have moved upward in the last few weeks and are nearing the market's all time high. 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

Prices in most of the market have stabilized recently. Only Quartile 4 shows any price increases in the last few weeks. Often this condition happens in markets where demand has fallen (for example, due to micro-location variables) but supply is still relatively short. Buyers are focusing on the lowest price homes in the area.

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. Home prices are rising a bit recently and 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 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


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 77.06; 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 Buyers

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 35 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

Documents

Cynthia’s Weekly Redwood City Market Update