May 20, 2016 Redwood City current real estate market trends.
How to know when is the best time to buy a home? Knowing the current trends is the knowledge one needs when buying a home. The information provided shows where the market is going, how are sellers and buyers reacting to it, and when is the right time to jump in a purchase your home at the right price and at the right time. Read this post and be far ahead of your competition who wants to buy your home. Don’t let them do that to you.
Here are my findings for the past seven days and how they fared to the previous week with the up or down arrow.
Weekly Market Update for Redwood City: May 20, 2016
During the previous 7-days…
↓ 16 new homes brought on the market for sale
↓ 12 homes went under contract as pending sales
↓ 17 homes closed escrow and now have new homeowners
↓ 16 Average days on market
↓ 1.5 Months of inventory available
↑ $874.00 Per square foot for sold homes
↑ 7.9% Above asking price was average sale price
↓ $1.316,027 Average Sale Price of a home in Redwood City
Key: Trending down: ↓, Trending up ↑, No change: ±
Cliff’s Viewpoint:
This week homes in Redwood City saw a continued strong trends in most categories The trend with the most noticeable change was the number of homes who reduced their asking price, which were 7 the highest figure all of 2016. There is still a large number of home-buyers. The Average Days to Sell, (ADS), figures are slightly down, 16 days this week from 19 days last week. The year to date ADA figure fluctuates between 15-29 days. ADS has been on a slight downward trend since October of 2015.
This week the Months of Inventory, (MOI), is down to 1.5 months. March 2016 was the lowest for the year at 1.4 months. There are less homes for buyers to choose from this week. This could be because the increase of the Average Selling Price (ASP) which has been slipping since mid-April. The demand for homes is still very strong. To demonstrate 16 new homes came on the market for sale and 12 homes were brought under contact last week, in addition 17 homes closed escrow. This means almost twice as many homes were sold or they closed escrow than home which, came on the market last week for sale. It’s not a really good time for home-buyers.
Dollar per square foot, ($/Sq. Ft.) is the only stable trend. It has been relativity level over the past 12 months. Once the level got over the threshold of $800/sq ft it never looked back. It closed this week at $874/sq ft up $39.00 from last week.
The List Price vs. Sell Price ratio, (LP:SP), is the most erratic trend. It just can’t seem to make up its mind. Understandably, buying a home is an emotional purchase, hence rational business thinking sometimes gets left at the front door and the fluctuation of the LP:SP ratio. For example, Jan ’16 the LP:SP was 104.5%, Feb ’16 it was 107.9%, March it was 106.2%, April ’16 was 108.3%, and last week it was 107.9%. These means from the first of the year homes have been closing escrow 4.5% – 8.3% over the asking price. Even though there are over asking price homes being sold the underlining trend is most homes are selling close to the list price or homes are being dropped in price to generate offers by more savvy home buyers.
Finally, the Average Sale Price, (ASP), this past week the ASP dropped down to $1,316,027 from the highest level in over 12 months of $1,863,612 in mid-April. The ASP has been on a upswing all year long! Most of the homes that are coming on the market for sale are priced over a million dollars. What I have seen is the homes that come on the market for sale priced under one million dollars’ amount to only between 15.0% – 42.6% of all homes offered for sale. Put it another way, 85.8% of all homes in Redwood City today will cost the home buyers at least $1,000,000.00!
Of course there are exceptions to the rule when it comes to homes. The only homes that stay on the market for sale are the ones who are overpriced, which are far and few in between, to the rest of the market or are in poor condition aka functional obsolescence. The quarterly trend for home prices as I see it, is going to be a steady increase in prices.
When you go to a Sunday Open Houses in Silicon Valley you will see lots of other home buyers looking at the homes along with you. The home buyers from the tech industry like Oracle, Electronic Arts, Google, Facebook, Intel, Box, LinkedIn, Instagram, and Buffer are out in full force, along with the bio-tech home-buyers from companies like; V Biosciences, Abbott Vascular, AbGenomics, and Genotech ready to place offers on their new homes. And, they all seem to have large sums of discretionary income to spend too.
As you can see the real estate market in Redwood City is still very strong and homes are selling faster and receiving higher offers for more money.
If you are looking to purchase a home in San Mateo or Santa Clara counties Cliff Keith and Team have many homes for you to choose from.
Some of these homes are not in the MLS and some are in MLS. The point being if you are trying to buy or sell a home we would love to help you find that perfect home. Especially, if you have not found a home and have been looking for one over 3 months.
What to Do Next?
To find your new home all you need to do is an easy 3-Step Process.
- Pick up your cell phone,
- Look up my number (650-346-7366),
- Call me immediately.
When you do call, we will discuss the best way we can meet so you can get the best information you need that will help you locate and purchase your new home as quickly as possible and receive the highest value possible for the amount of money you want to spend. Do it now. It’ll be the smartest decision you’ll ever make.
