Hello Redwood City neighbors!
In my last report, it was clear that a slight market shift or market correction was evident when comparing January and February 2016 sales data versus all of 2015. The Q1 2016 sales data was just released by SAMCAR and similar trends are continuing to show a slight correction in the marketplace. Here are a few highlights by housing category. Homeowners should pay particular attention to statistics highlighted in yellow. Supporting charts are also provided.
Redwood City Single Family Home Statistics*:
Days of Market: 31days or almost 30% longer compared to 2015. Favoring buyers.
Median Sales Price: Down by 6%. The market is shifting. We are not experiencing the double-digit growth we saw in 2015.
Price pre Square Foot: Essentially flat at 2.59%. Not the double-digit growth we saw in 2015. The market is shifting.
% Of List price Received: Down almost 2%. We’re also seeing fewer offers per property sold as well as many price reductions.
Months of Inventory: Up over 157% to almost 2 full months, favoring buyers.
Monthly closed transactions: 239 per month versus 359per month in 2015, over almost 33% less!
The Big Take Away
Homeowners should be seriously considering selling strategies before the upcoming summer slow-down. One key California-centric strategy is how to defer capital gain tax. To be clear there is no imminent real estate market crash, however one must ask if the current market shift represent the calm before the storm (?). Some industry pundits have predicted a market correction of as much as 20% in 2016. At a current average selling price of $1.2M for a single family home, that could be as much as $240K out of your pocket if those predictions come true. As a seller, do not forget that the Fed has also promised to increase interest rates by the summer which will make all homes more expensive to buy, thus possibly slowing the market even more.
I trust you’ll find this information useful, and I encourage you to share it with friends, family and colleagues. Let’s meet soon to discuss your current and future real estate aspirations. Whether a seller or buyer, I will put you in the best possible position to maximize your investment(s), contributing to your immediate and long-term wealth.