cynthia’s weekly redwood city market update – 7/6/15

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Median Price List $1,199,000

Average List Price $1,725,875

Asking Price Per Square Foot $706

Average Days on Market (DOM) 28

Inventory of Properties Listed 57

Most Expensive Listing $25,000,000

Least Expensive Listing $349,900

Average Age of Listing 62

Percent of Properties with Price Decrease 14%

Percent Relisted (reset DOM) 5%

Percent Flip (price increased) 4%

Median House Size (sq. ft.) 1,660

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 July 6, 2015 Trend

The median list price in Redwood City this week is $1,199,000. The57 properties have been on the market for an average of 28 days.

Demand measured by the MarketAction Index is increasing and days-on-market is holding steady. Withmore properties coming available,conditions are mildly positive.

This Week

Altos Research Value StatisticsMarket Action Index Strong Sellers 76.1

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.

The market remains in a relativestasis in terms of sales to inventory.Prices have not been moving higherfor several weeks. However, inventory is sufficiently low to keep us in the Seller's Market zone so watch changes in the MAI. If the market heats up persistently, prices are likely to resume an upward climb.

Supply and Demand

QuartileMedian

PriceSq. Ft. Lot Size Beds Baths Age Inventory New Absorbed DOM

Top/First $1,998,475 3,2100.25 -

0.50 acre4.0 3.5 30 14 5 3 19

Upper/Second $1,398,500 1,8956,501

8,000 sq. ft.

3.0 2.0 60 14 2 5 32

Lower/Third $996,500 1,6054,501

6,500 sq. ft.

3.0 2.0 68 14 6 7 22

Bottom/Fourth $790,000 1,0904,501

6,500 sq. ft.

2.0 1.0 68 15 4 4 37

Characteristics per Quartile

The market has been on a downward trend in the last few weeks and this week, while essentially flat, doesn't break us out of that cycle.

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



We're seeing fairly unusual market conditions as prices have been in a downward trend but price per square foot is actually increasing. (Buyers are paying less and getting less home for their money.) Anomalies like these can be attributed to microlocation variables.

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


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 76.05; 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 28 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 – 7/6/15

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