Local Real Estate Market Update

Redwood City

This Week

Update for the week of September 28, 2015

The median list price in Redwood

City, Ca this week is $1,150,000. The
63 properties have been on the
market for an average of 34 days.
With inventory and days-on-market
basically unchanged and the Market
Action Index decreasing, the market
is not sending strong directional
signal for the near-term outlook.

Supply and Demand

The market has been cooling off a

bit in recent weeks, as more homes
are available and demand is less.
We're already seeing prices move
lower as a result. Expect this trend
to continue especially if the index
falls to the Buyer's zone. Watch for a
persistent up-turn in Market Action
to signal prices rising again.

Characteristics per Quartile

Median
Price

Sq. Ft.

Lot Size

Beds

Baths

Age

Inventory

New

Absorbed

DOM

Top/First

$2,300,000

3,132

0.25 - 0.50
acre

4.0

4.0

19

15

27

Upper/Second

$1,314,000

1,850

4,501
6,5000 sq. ft.

3.0

2.0

60

16

10

13

Lower/Third

$969,000

1,255

4,501
6,500 sq. ft.

3.0

2.0

72

16

36

Bottom/Fourth

$768,500

1,171

4,501
6,500 sq. ft.

3.0

1.5

70

16

61

Quartile

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Median Price

This week prices bumped up a bit but the trend of recent weeks is generally downward.
A pickup in demand will be reflected in the Market Action Index, so watch that chart
to try to identify a trough in the market.

$1,400,000$1,300,000$1,200,000$1,100,000$1,000,000$900,000-

Quartile Price

Pricing trends have been lacking strong directional indication lately. Prices in
Quartiles 4 and 2 have been mixed in recent weeks, while Quartile 3 is down and
Quartile 1 is up. Look to the Market Action Index to determine when we may see a
shift in prices from these current levels.

$2,250,000$2,000,000$1,750,000$1,500,000$1,250,000$1,000,000$750,000$500,000-

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Price per Square Foot

The market's light downward trends are shared across both price and value. People are recently
placing less value on homes (you can see the recent declines in price per square foot as evidence.)
Look for significant changes in the Market Action Index as a precursor to price and value changes,
possibly as inflection points for good investment opportunities.
$750$700$650$600$550$500-

Inventory of Properties Listed for Sale

Inventory has been relatively steady around these levels in recent weeks.

$750$700$650$600$550$500-

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Market Action Index

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 62.98; indicating very little
supply relative to the demand.

80706050403020-

Market Action Index per Quartile

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.

1009080706050403020-

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.

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Days on Market

The properties have been on the market for an average of 34 days. Half of the listings
have come newly on the market in the past 14 or so days.

Days on Market per Quartile

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

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