Market Shift Continues Thru Summer. Great Opportunities Exist For Aggressive Buyers!

Greetings and thanks for checking in.

Here a brief rundown of what’s been happening in Redwood City during the month of July 2016 compared to July 2015.

There are many reasons for the recent market shift. I encourage you to contact me for a for a low-key, private and highly informative consultation which will show you how these facts and figures will affect your real estate aspirations. What you don’t know will hurt you.

Big takeaways:

  • The market is still active and flourishing. While there are some buyer-positive market shifts happening, buyers still need to keep their foot on the gas. Do not get complacent!
  • The condo figures indicate that many buyers may be looking to condos as a back-up plan if they feel priced-out of Single Family Homes.
  • Months of inventory has spiked up. The market feels like it’s flattening out.
  • We are seeing fewer offers per completed transaction. Homes that garnered 6-10 offers in 2015 are now getting 2-5, and in many cases those offers are for less dollars above asking price than in recent years. Double-digit offers seem to be yesterday’s news.
  • More offer dates are being set with no offers coming in at all, hence…
  • We are also seeing many more price reductions.
  • It is still a seller market, but less so than last year. Sellers should be mindful of their pricing strategy. Last year’s pricing models will not work and will result in “stale bread syndrome”.
  • Detailed statistics below

Single Family Homes (July 2016 versus July 2015)

  • Days on Market: 24 days versus 23 in 2015. Change of over 4%.
  • Median Sales Price: $1,315,000 versus $1,338,000, down close to 2%. Huge price gains seen in recent years have slowed dramatically. Maybe even peaked?
  • Price per Square Foot: $909 versus $833 in 2015. Just over 9% change.
  • % Of List Price Received: 106% versus 112% in 2015, down over 5%.
  • Months of inventory: 1.3 months versus 3 weeks in 2015 or an over 85% change benefiting buyers.
  • Monthly Closed Transactions: 49 transactions versus 62 in 2015, close to 21% decrease.

Condos (July 2016 versus July 2015)

  • Days on Market: 19 days versus 18 in 2015, or down over 18%. Activity has slowed.
  • Median Sales Price: $930,000 versus $760,000 in 2015. Spike up over 22%. 
  • Price per Square Foot: $773 versus $557 in 2015. Spike up over 31%. 
  • % Of List Price Received: 109% versus 104% in 2015. Over 4% increase.
  • Months of inventory:  About 2.3 months versus less than1 month in 2015 or a 155% change benefiting buyers.
  • Monthly Closed Transactions: Flat year-on-year at 8 units

Dino Virella
Passion > Integrity > Results
CalBRE #019111


* All statistics as per SAMCAR