Cynthia’s Weekly Redwood City Market Update – 6/9/15

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Median Price List $1,349,000

Average List Price $1,327,129

Asking Price Per Square Foot $702

Average Days on Market (DOM) 40

Inventory of Properties Listed 51

Most Expensive Listing $3,495,000

Least Expensive Listing $116,000

Average Age of Listing 53

Percent of Properties with Price Decrease 16%

Percent Relisted (reset DOM) 10%

Percent Flip (price increased) 8%

Median House Size (sq. ft.) 1,810

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

Median Number of Bedrooms 3

Median Number of Bathrooms 2

Local Real Estate Market UpdateRedwood City

Report for the week of June 1, 2015 Trend

The median list price in Redwood City this week is $1,349,000. The51 properties have been on the market for an average of 40 days.

Inventory has been lightening latelyand the Market Action Index has been trending up. Though days-on-market is increasing, these are mildly positive indications for the market.

This Week

Altos Research Value StatisticsMarket Action Index Strong Sellers 78.8

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 $2,011,944 3,2350.25 -

0.50 acre4.0 3.2 24 12 2 3 86

Upper/Second $1,475,000 2,1006,501

8,000 sq. ft.

3.0 2.5 47 13 5 6 12

Lower/Third $1,149,000 1,5604,501

6,500 sq. ft.

3.0 2.5 62 13 6 5 22

Bottom/Fourth $729,000 1,1404,501

6,500 sq. ft.

2.0 2.0 68 13 5 5 45

Characteristics per Quartile

Though this week saw relatively little price change from last week, the market seems to be show some signs of strength. The Market Action Index is a good leading indicator for the durability of this trend.

Median Price

Prices have generally settled at a plateau, although Quartile 1 has been trending a bit downward 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



In a market where prices are rising some, 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. As a result the value one can buy stays the same.

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 78.76; 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 40 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

Cynthia’s Weekly Redwood City Market Update – 6/9/15

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