Almost No Inventory
Inventory levels of unsold single family homes are nearly zero in Redwood Shores. This has come as part of a multi-year trend of falling inventory in both Redwood Shores and the greater Peninsula. In 2010, there were an average of 13 unsold homes at the end of every month in Redwood Shores. By 2012, monthly ending inventory had declined to just five homes. In the most recent month of data, March 2013, there was only a single unsold home on the market at the conclusion of the month.
The lack of inventory is driving prices upward as buyers compete for the dwindling supply. Because Redwood Shores is a relatively small real estate market, with around five home sales per month on average, it can be difficult to track the price trend on a monthly basis. The change in average and median prices in any given month is due more to what type of homes happened to sell in a given month rather than underlying price movement. However, if you smooth the data out over a 12 month average a trend appears. Prices are rising!
Median and average home prices are up nearly 20% on an annual basis, though some of this increase is due to a shift in the size of homes that are selling (10% bigger in recent months). The average price per square foot, which can help to correct for this shift shows underlying prices are up around 10% or high single digits over the past year.
Sales Levels Normal to Start the Year
There have been 12 sales in the first three months of the year in Redwood Shores, about the same as in 2012 when there were 15 homes sold to start the year.
Sellers have been incredibly successful in the past 12 to 18 months in terms of actually selling their house. In the past 18 months, there have been 104 recorded new listings, 95 recorded sales and about 20 listings that either expired from the listing service or were cancelled (suggesting that either the seller had a change of heart or was not presented with an offer that met their price point). Properly priced homes that have been relatively well maintained in decent locations are nearly guaranteed to sell in the current market.
By The Numbers - Redwood Shores Real Estate for 2013
|Current Month||YTD Total or Average|
|March 2012||March 2013||Jan - Mar 2012||Jan - Mar 2013|
|Days on Market||22||7||33||18|
|Months of Supply||1.0||0.2||1.3||0.7|
|Avg $ per Sq Ft||$476||$571||$475||$535|
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.