Redwood Shores Real Estate March 2012

Sales Activity Healthy in 2012

Redwood Shores is a relatively small market with less than 100 sales in most years, so comparing activity in just the first quarter of the year can be misleading. Sales appear to be up sharply in the first three months of 2012, as compared to 2011, with 15 homes sold this year, versus three homes sold last year. However, that it is a bit misleading as there were also 15 homes sold in the first three months of 2010. 2011 is the outlier, not 2012. Overall, sales activity is healthy to start the year, in line with the trends we are seeing for all of San Mateo County.

The inventory of for-sale homes remains low in the Redwood Shores real estate market. At the end of March 2012 there were five unsold homes, which at the current sales pace is only enough for one month. Unless the number of newly listed properties increases inventory will likely remain limited for awhile. So far, new listings are down slightly from last year.

The average home that ends up selling in Redwood Shores does so in about a month, versus two months for all of San Mateo County. However, the average can be skewed by homes that are mis-priced or have unmotivated sellers and sit on the market for six months. Many desirable homes sell in less than a week, meaning that buyers who are able to keep up on new listings and make a quality offer quickly have the advantage.

Price Levels Appear Steady

With so few sales, average and median price levels move around a lot from month to month in the Redwood Shores real estate market and it can be challenging to get an indication of trends. Price levels for the 15 homes sold in the first three months of 2012 suggest that average and median selling values remain steady at just under $1,000,000. The average price per square foot is just under $500 and has been so for the past few years.

Sellers are continuing to get pretty close to their asking price. The sale price divided by list price has averaged 100% in 2012, meaning that homes on average sold for the same as their final asking price. While this statistic is not perfect -- it doesn't properly account for homes that were price reduced and then immediately sold -- it is a relevant price signal. Interestingly, in Redwood Shores the ratio has increased 1% each year, from 97% in 2009, t0 98% in 2010, to 99% in 2011 and now up to 100% so far in 2012. This is a positive sign for price appreciation and also means that sellers need to think about doing more than just pricing even with prior comps. Depending on a seller's needs and motivation, there might be an opportunity to get a higher selling price. A Realtor who knows your local market can help determine the best pricing strategy for the unique combination of your market and your personal situation.

Thinking of buying or selling a home in Redwood Shores?

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

 

By The Numbers - Redwood Shores Real Estate for March 2012