Redwood City Real Estate - March 2012

Raziel Ungar

April 5th, 2012 - 2 min read
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Sales Up in 2012

The Redwood City real estate market has had a hot start to the year, in terms of the number of transactions. Through the first three months of 2012, there have been 128 homes sold, up from 100 in the same period last year.

At the same time that sales are up 28 percent, the number of newly listed homes have fallen sharply. Compared to 2011, 12 percent fewer homes have come onto the market. The combination of rising sales and fewer listings has driven inventory down significantly. At the end of March 2012 there were less than 75 homes for sale in Redwood City. Last year at this time, there were 168 homes on the market. That means that the amount of for-sale homes available to a prospective buyer has declined by more than 50 percent! Each buyer has much less choice than they did just 12 months ago and each seller has much less competition. This is obviously very good for sellers.

Steady Prices

Last September we noted that although selling values appeared to be declining in Redwood City it may have just been a normal random fluctuation in the types of homes being sold. Six months later, that seems like the most reasonable explanation. Selling values are up compared to 2011, but on average have basically been flat for the past two years.

Going forward, the extraordinarily low level of inventory is one indicator pointing to higher prices. When buyers have to compete for a limited supply the tendency is for the most sought after homes to get multiple offers, culminating in offers above asking prices. When offers come in above asking prices it leads to higher selling values, higher comps and higher asking prices for future listings. We will continue to track inventory levels to get an idea of future price movements.

Thinking of buying or selling a home in Redwood City?

If you're interested in learning more about the Redwood City real estate market, considering selling your home in Redwood City, or thinking about moving to Redwood City, please drop me a line and I'd love to connect with you.

By The Numbers - Redwood City Real Estate for March 2012

Current Month YTD Total or Average
March 2011 March 2012 Jan - Mar 2011 Jan - Mar 2012
Sales 45 56 100 128
Days on Market 59 45 58 54
Months of Supply 3.7 1.3 5.0 1.9
Average Price $657,000 $742,000 $682,580 $728,141
Median Price $590,000 $715,000 $636,980 $683,078
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