Cynthia’s Weekly Redwood City Market Update 10.12.15

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Local Real Estate Market UpdateRedwood City

The median list price in Redwood City, Ca this week is $1,350,000. The69 properties have been on the market for an average of 37 days.

The Market Action Index has beentrending down lately, while inventoryand days-on-market are climbing. Thetrends imply a weakening market.

This Week

The market has been cooling over time and prices have recently flattened. Despite the consistent decrease in Market Action Index (MAI), we're in a Seller's Market (where significant demand leaves little inventory available). If the MAI begins to climb, prices will likely follow suit. If the MAI drops consistently or falls into the Buyer's zone, watch for downward pressure

Supply and Demand

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

Top/First $2,395,000 3,132 0.25 - 0.50 acre 4.0 3.5 27 17 3 0 32

Upper/Second $1,549,000 1,990 4,501 –6,5000 sq. ft. 3.0 2.0 40 17 4 5 21

Lower/Third $1,195,000 1,640 4,501 –6,500 sq. ft. 3.0 2.0 64 17 4 4 21

Bottom/Fourth $794,500 1,145 4,501 –6,500 sq. ft. 3.0 1.0 68 18 3 4 72

Characteristics per Quartile

Update for the week of October 12, 2015

Price trends continued their recent uptrend this week. While still below the market's price high-point, we've seen a nice run recently.

Median Price

Prices have generally settled at a plateau, although Quartile 1 is on a bit of an up trend 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


$1,400,000-

$1,300,000-

$1,200,000-

$1,100,000-

$1,000,000-

$900,000-

$2,250,000-

$2,000,000-

$1,750,000-

$1,500,000-

$1,250,000-

$1,000,000-

$750,000-

$500,000-


The market appears to be placing an increasing premium on homes. When list prices and price per square foot consistently increase in tandem, as they're doing now, you can often find short-term investment opportunities. Watch the Market Action Index for persistent changes as a leading indicator for these trends to flatten or drop.

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

$750-

$700-

$650-

$600-

$550-

$500-

$750-

$700-

$650-

$600-

$550-

$500-


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 61.10; 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.

80-

70-

60-

50-

40-

30-

20-

100-

90-

80-

70-

60-

50-

40-

30-

20-


The properties have been on the market for an average of 37 days. Half of the listings have come newly on the market in the past 21 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

Cynthia’s Weekly Redwood City Market Update 10.12.15

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