Is the Redwood City Real Estate Market Cooling Down?
Is the real estate market finally cooling down? At the beginning of September, we saw a healthy increase in the number of homes listed for sale, noticeable price reductions on listings, and an uptick in the average days on market. The market has cooled in the past six weeks which means we could be heading for a slow down, or at least, a more balanced market than we’ve seen in the last seven years. Here’s a look at some recent stats for Redwood City:
2017 Q3 vs. 2018 Q3
There were roughly 15% more new listings in 2018
Number of sales stayed pretty much the same
The average list price of a home is about 9% higher in 2018
Average sale price is about 12% higher in 2018
September 1 - october 12 // 2017 vs. 2018
There were roughly 20% more new listings in 2018
Number of sales is down by about 10% in 2018
The average list price is up by about 6% in 2018
The amount of price reductions we've had is up 300% in 2018
The average days on market is up by about 33% in 2018
The market has undoubtedly cooled over the last month or so. So what does this mean for you?
If you’re a buyer —
Over the past few years, being a buyer in the Bay Area has been tough. Most houses have been selling with multiple offers at hundreds of thousands of dollars over the list price. If you’re just starting to look or were actively looking earlier in the year and decided to take a break over the summer, now is a great time to buy.
As is usually the case, timing is everything. With the current conditions, you could potentially buy something contingent upon selling your house or even purchase something for less than you would be able to in a more competitive buyer’s market. These conditions may stay the same or pick back up in a few months. If you’re getting ready to buy a home, I’m happy to hop on the phone (650) 704-8883 or meet up for coffee and help you strategize.
If you’re in the market to buy, another thing to take into consideration is that interest rates have increased quite a bit and many experts believe they will continue to in 2019. Talk to your lender and know your costs before making an offer. Depending on your loan amount, an increase of half a percent could mean the difference between of your monthly payment being hundreds of dollars more or less per month.
If you’re selling your house —
If you are getting ready to list your house it’s helpful to know that the market isn’t where it was a few months ago. Because of the increase in inventory, properties are taking longer to sell and may not see competitive multiple offers.
Does that mean you shouldn’t sell now? That depends. If you’re not in a rush, you could take a gamble and wait a few months to see what happens — the market may pick back up or could continue to slow. Or if your goal is to buy another home with a contingency of your home selling first, the chances of successfully doing so are higher now than they have been in a long time.
To be successful selling in the current market, it’s more important than ever to price your home just right and to work with a realtor that will help you market your home well. If you need advice or would like to schedule a complimentary consultation to look at your home’s value, I’d love to meet with you.
Cliff Whearley has been a resident of Redwood City for 23 years and was named Realtor of the Year 2016 at Dwell Realtors, Inc. If you have any real estate questions, he would love to help!