This week of close sales was a bit atypical for Redwood City real estate, in terms of property characteristics. The average size of the 10 sold homes was 2,279 S/F, and average lot size was 10,536 S/F - both well over the average for single-family homes in Redwood City. The larger than usual homes likely played into our average price per square foot falling below $1,000 for the first time in 8 weeks. Though it may sound counter-intuitive, a larger home does not always mean a higher price per square foot, even if its sales price is much greater than a smaller home. Think of it like the law of diminishing returns - at some point, the value you are adding to a home by increasing square footage diminishes the more you add. So often times the homes with the highest price per square foot are smaller homes with quality finishes and upgrades.
No comments:
Post a Comment