Redwood Shores Real Estate - June 2012
Inventory Down to Nearly ZeroRedwood Shores is a relatively small market with less than 100 sales in most years, so random variation are to be expected. However, the drop in inventory has been dramatic. At the midway point of last year there were 11 unsold homes on the market, which already represented a relatively constrained market for Redwood Shores. At the end of June 2012, inventory fell to one unsold home. That is not a typo, only 1 home was listed on the market at the end of June 2012 when we pulled the data.
The driving force behind the dramatic reduction in inventory has been a sharp bump in sales, and a modest decline in new listings. There have been 34 homes sold this year in Redwood Shores, up from 19 at the midway point last year. (Last year was a bit of an anomaly, there were actually 38 homes sold in the first six months of 2010). At the same time that sales increase from last year, the number of new listings is down 10% with just 40 homes newly listed so far in 2012.
Price Levels Appear Steady, So FarA relatively healthy local economy and record low interest rates means that buyer demand is actually quite strong up and down the Peninsula. With more buyers competing for a dwindling supply of homes we would expect prices to rise. To-date, the summary statistics do now show any clear signs of price increase. Stay tuned for our next update as we will be monitoring the situation closely.
Part of the reason why it is hard to see changes in price levels is that because Redwood Shores is a relatively small market, average and median price levels move around a lot from month to month. The change is due more to what type of homes happened to sell in a given month rather than underlying price movement. For example, average and median prices appear to be up about 7% in 2012. However, the average home sold in Redwood Shores in 2012 has about 7% greater square footage than the average home sold in 2011. The average price per square foot has been flat.
By The Numbers - Redwood Shores Real Estate for 2012
|Current Month||YTD Total or Average|
|June 2011||June 2012||Jan - Jun 2011||Jan - Jun 2012|
|Days on Market||23||19||23||28|
|Months of Supply||0.8||0.1||2.3||1.0|
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.