Local Real Estate Market Update

Redwood City

This Week

Trend

Report for the week of April 27, 2015

The median list price in Redwood

City this week is $1,362,475. The
52 properties have been on the market
for an average of 40 days.

Median Price List

$1,362,475

Average List Price

$1,491,148

Average Days on Market (DOM)

40

The Market Action Index has been

trending down lately, while inventory
and days-on-market are climbing.
The trends imply a weakening market.

Inventory of Properties Listed

52

Asking Price Per Square Foot

$697

Most Expensive Listing

$4,498,000

Least Expensive Listing

$450,000

Average Age of Listing

55

Percent of Properties with Price Decrease

Supply and Demand

In the last few weeks the market has
achieved a relative stasis point in
terms of sales to inventory.
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, prices are
likely to resume an upward climb.

19%

Percent Relisted (reset DOM)

4%

Percent Flip (price increased)

4%

Median House Size (sq. ft.)

1,830

Median Lot Size

6,501 - 8,000 sq. ft.

Median Number of Bedrooms

Median Number of Bathrooms

Altos Research Value Statistics

Market Action Index
Strong Sellers
73.4
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.

Characteristics
per Quartile
Median
Price

Sq. Ft.

Lot Size

Beds

Baths

Age

Inventory

New

Absorbed

DOM

Top/First

$2,299,000

3,344

0.25 0.50 acre

4.0

3.5

16

13

61

Upper/Second

$1,499,000

2,130

6,501
8,000 sq.
ft.

3.0

2.5

47

13

45

Lower/Third

$1,248,000

1,491

6,501
8,000 sq.
ft.

3.0

2.0

75

13

26

Bottom/Fourth

$659,000

1,090

4,501
6,500 sq.
ft.

2.0

1.0

69

13

27

Quartile

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

Quartile Price
Pricing in the upper-half of the market (Quartiles 1 and 2) has been
relatively flat recently while the lower-half prices have remained strong.
Quartiles 3 and 4 have been increasing in the last few weeks. Look to the
Market Action Index Quartile breakdown for a leading indicator on
which group will lead the market in the near future.

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Price per Square Foot

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.

Inventory of Properties Listed for Sale

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.

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Market Action Index

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 73.41; indicating very little
supply relative to the demand.

Market Action Index per Quartile

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.

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.

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Days on Market
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 7 or so days.

Days on Market per Quartile

It is not uncommon for the higher priced homes in an area to take longer to sell than
those in the lower quartiles.

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