January 27, 2012 Friday’s Weekly Market Update For Redwood City
The Updated Redwood City Friday’s Market Update: 2011 and 1/20/2012
Redwood City real estate: Here is the MLS data for single-family homes over the past 7 days in Redwood City, CA. These numbers show data gathered between Friday 1/13/2012 – 1/27/12:
Date: 2011-1/20-27
New Listings -762-18-12
$ Increased—000-00-02
$ Decreased–000-08-03
BOM————-000-05-03
Pending–——-000-09-12
Do Not Show–000-07-12
Sold–————-557-07-10
Rentals–———000-01-02
Expired–———786-00-00
Cancelled–——000-01-03
What do those numbers mean? They mean 30% of the homes that came on the market for sale, their counter parts of active listings that are on the market dropped their asking price. It appears some homes are not at the current market value when placed for sale on the open market.
What type of market do I see here? The numbers point to a Seller’s Market! WHY you may ask? It’s because of the basic law in economic, Supply and Demand. Redwood City had 12 new homes, which came on the market for sale during the past 7 days and 40 homes, or 3.33 times more homes removed from the market for various reasons.
The months of inventory is sitting at 4.8 months. The LP:SP Ratio (for list price vs. sale price) jumped to 98.3%. The days to sell lowered from last month of 113 to this month 67. This is a sign Redwood City is in a “Sellers Market” from these numbers.
If you were a home buyer looking to buy a home in Redwood City, I’d say it’s time for action on your part. If you are a home seller in Redwood City, I say, it too is time for you to consider putting your home on the market for sale, today.
Both Redwood City’s homebuyers and sellers will make an intelligent decision by taking action to buy and sell their homes.
By doing so, Buyers would be ahead of the home buying market curve because the media hasn’t realized the market is shifting towards a Seller’s Market. And, when the media starts reporting the shift in the Redwood City real estate market more homebuyers will begin looking to buy their home in Redwood City. Redwood City homebuyers you are smart! Make the smart choice. As a side note, Redwood City real estate in past recessions, kept ahead of inflation for investors. (See 9/19/11 blog post on inflation.)
Redwood City Home Sellers you are smart too! Take action today, and offer your home to the market for sale because you will begin to see quicker offers during this trend. This will cause you, the home seller, to negotiate on your offers fewer concessions in terms of the price and conditions.
Robert Aldana Yes and NO. Most areas in NorCal are like that but the info is misleading. Properties are in demand, but prices are not going up anytime soon. Low rates with low prices is keeping things hit, but most sellers will not see one penny as many of not most deals are either SS or REO’s. Good deals out there, lots of buyers, but not like traditional times with non SS/REO deals where buyers can overbid on home like before. Lenders will not allow it in their appraisals. Just my 2 cents, probably all that it is worth!
Robert Aldana https://www.facebook.com/RobertAldana,
Thank you so much for your comments. I appreciate them and agree with you in some of the area. Much like your answer of yes and no. Your points about the lenders being unreasonable and hard nose on their appraisals are absolutely correct. Although I still have not seen a bank that would not take more money than they want.
We are both in the real estate business; however, our market places are different on many facets. It doesn’t mean either of our markets is right or wrong it just mean our markets are different. In my market, Redwood City year to date we have had 10 Short Sales or real estate owned (REO’s) of which none of them have sold. On the other hand the total number of “conventional” new listing in Redwood City sits at 56 with 1 home selling since January 1, 2012. This represents as a percentage a market share by Short Sales and REO’s as being 17.85%.
No doubt 17.85% of any market will have an impact. I submit it’s not so much as the numbers as it is the FEAR of the buying public that is the culprit. Until our economy settles down and buyers know they have a job tomorrow that the price of oil is stabilized, and our national debt is dealt is brought under control I think the real estate market will keep on fluxing like a roller coaster. It just so happens Redwood City ride favors a Seller’s Market over the past 7 days.
Again, thank you for your comments. I really do appreciate them.
Cliff Keith