February Redwood City Market Update
We’re close to the end of February and it’s time for a Redwood City real estate market update. So far this quarter, the numbers we’re seeing look consistent with last year, but also show a subtle shift in the market — and possibly a shift in selling strategy as well.
Right now, homes are selling for less on average than last year — the average sale price for this quarter is $1,540,203, which comes out to $953 per square foot. Homes are also taking a little longer to sell. The average days on the market right now is 36 days vs. 15 days last year. What’s interesting is that the average sale price is lower, but the average list price is higher. This shows a shift in pricing strategy that we would see in a more balanced market. Rather than pricing low with the expectation of multiple offers resulting in a high sale price, we’re starting to see more homes priced higher and selling at asking, or below asking. This shows a pricing strategy that may be ready to accommodate the house sitting on the market a little longer, as well as a potential price reduction. It will be interesting to see how this trend continues through the year.
Below are the numbers for the first quarter of the past ten years and this quarter, so far.
Q1 Number of New Listings & Sales
So while we haven't had a record number of new listings so far this quarter, the number of sales we have seen isn't triggering any huge indicators either. One thing to keep in mind while considering these numbers, is that the first half of the first quarter is typically pretty quiet. January is a sleepy time for new listings as sellers and buyers are still getting their bearings after the holidays and need some time to get focused and put plans into action.
Typically, we start to see a rush that sets in right around mid February, which I think we’re seeing. Open houses become busier, there are more requests for disclosures, and multiple offers start to come back into the picture. The rush right now may be seasonal, then again it could be something else. With interest rates and prices down it’s a great time to buy in Redwood City, especially for homeowners looking to sell their current home and buy something bigger, as well as first time buyers that may have been priced out last year.
Depending on our economy, available inventory, and interest rates, we could continue to see relatively strong demand for real estate in Redwood City through April, like we've seen in recent years. In any case, I'll report back once we wrap up the first quarter. Or if you’re looking for more in depth advice, click below, and let’s set up a time to chat.
Cliff Whearley has been a resident of Redwood City for 23 years and was named Realtor of the Year in 2018 and 2016 at Dwell Realtors, Inc. If you have any real estate questions, he would love to help!