Monday, December 9, 2019

12/2/2019 - 12/8/2019

Inventory didn't see the same drop it did the week prior, but it did continue it's downward trend.  The week after Thanksgiving provides the only semi-optimal window to list a home for sale in the month of December, as it provides two full weekends of open houses before the holidays roll around and everyone goes off on vacation.  I would expect fewer new listings this week and moving forward until January.  

4 listings were either cancelled or expired this week, which is a common thing to see around this time of year.  We will likely see those homes back on the market in a month or so, because after 30 days you are able to relist your home in the MLS with a fresh days on market counter, giving it the appearance of a "new" listing.

Monday, December 2, 2019

11/25/2019 - 12/1/2019

As fewer new homes are listed each week, the average age of our inventory is gradually getting higher and higher.  Redwood City's 55 active single-family homes for sale have been on the market for an average of 66 days.  When you take this into consideration, along with the fact that we are now officially in the slow season for real estate activity, it is reasonable to expect that many of these 55 sellers are getting anxious to get into contract before Christmas.  Some of these sellers are even likely to pull their homes off the market if they don't sell in the next couple of weeks, with plans to relist after the holidays.  

This presents buyers with a unique window of opportunity where sellers are more likely to work with them to get a deal done, even if the initial offer isn't quite what they were looking for.  So while the holidays aren't the most convenient time to make one of the biggest financial decisions of your life, they do present some advantages to buyers who stay active.  

Monday, November 25, 2019

11/18/2019 - 11/24/2019

Inventory is reeling in as the holidays approach us.  With Thanksgiving week officially upon us, our 59 currently active single-family homes for sale are the lowest since the first week of September.  Expect that number to continue dropping through December.  As we get closer to Christmas, we will probably see more cancellations and withdrawn listings, as sellers pull their homes off the market and wait to relist in the new year.  This is a common strategy for homes that have already racked up significant days on market heading into the holidays.  The idea is that since the holidays are generally a slow time for real estate anyway, it offers a good window to take your listing down, perhaps make some cosmetic improvements/changes, take new photos/video, and consider a new price.  After 30 days you can relist your home in MLS and it will show as a brand new listing again.  

Monday, November 11, 2019

11/4/2019 - 11/10/2019

Average sales prices came in much lower this week, but this is more reflective of the size and location of the homes that sold rather than a price trend, as price per square foot numbers remain strong and homes still closed above their average list price.  

The highest sale of the week was actually a RealSmart listing at 1010 Eden Bower Lane, a gorgeous 4BD/2BA home in the Farmhill Estates neighborhood which sold for $2,010,000.  The lowest sale of the week was a small 760 square foot 2 bed, 1 bath home at 600 Warrington Ave, which sold for $770,000.  This was actually the 4th lowest sale of the year in Redwood City, with the 3 lower sales located within a few blocks of this home in the Fair Oaks area.  

I would expect to see a lot of inventory clearing out over the next few weeks as we approach Thanksgiving.  This is a great time to be a buyer, as sellers are eager to get their home off the market before the holidays roll around.

Monday, October 14, 2019

10/7/2019 - 10/13/2019

After an impressive inventory surge from the end of August through the middle of September, things had slowed down in recent weeks.  But this past week saw another jolt, with 21 new single-family homes being listed for sale, bringing inventory back up to the mid-70's in Redwood City.  Still, we're actually below what inventory was around this time in 2018, which is when we first started started to notice the market shifting away from multiple offer scenarios and towards longer days on market. 

We have about a month and a half until the holidays roll around and put the industry on ice for a couple months.  We'll likely see inventory continue to climb in the weeks leading up to this, as sellers scramble to get their homes on the market and try to sell before Thanksgiving.

Monday, October 7, 2019

9/30/2019 - 10/6/2019

For the first time since April of 2012, the Redwood City real estate market saw a month where the average sales price was lower than their average list price.  September's sales to list ratio came in at 99.6%, which at an average sales price of just over $1,700,000 for the month, means that listings were selling at an average of around $30,000 below their original list price.  We're continuing the trend so far in October, with our first 12 sales of the month closing at an average of almost $40,000 under their list price.  This doesn't come as a surprise, as sellers have been experiencing this market shift for a while now.  But what IS remarkable, and I would venture to guess is almost unprecedented in any US real estate market (no data to back this up), is for a city to go 88 consecutive months with a sales to list price ratio above 100%.  To put things into perspective - the last time our average sales to list price ratio fell below 100%, the average sales price of a home in Redwood City was just under $700,000... Single-family home values have increased at an average of roughly $130,000/year since then.  Let that sink in...