Single-family homes in Redwood City are selling at a pace that’s unprecedented in the last two years. And after a sluggish start to the year, the number of closings month to month is rising dramatically.Let’s look more closely at a few trends: number of days on the market (DOM), number of available properties and number of sales finalized.
Days on the market
We started the year in January with an average days on the market of 29 for Redwood City homes. This tells us how long homes remain on active listing status before they’re bought. In the next month, February, the DOM dropped to 10, which was the fastest pace that homes have sold here in more than two years.
For each of the next three months – March, April and May – the average days on the market was 14. This number, likewise, hasn’t been equaled in two-plus years.
Before the drop from 29 to 10, the average monthly DOM between February 2014 and January 2015 was 23.1. The longest time on the market since May 2013 was 48 days, in December 2013.
Assuming the number of buyers interested in purchasing in a given market remains steady, we expect to see speedier sales when inventory drops. Let’s look at the homes inventory in Redwood City from several different angles.
• May 2015: 109 listings • May 2014: 155 listings • May 2013: 186 listings
Here are the inventory numbers for four-month clusters:
• February-May 2015: 396 • February-May 2014: 485
Finally, totals for the last two 12-month periods:
• June-May 2015: 1,217 • June-May 2014: 1,624
Properties sold on the rise
A shrinking homes inventory hasn’t resulted in fewer sales. This year began with 24 sales in January. Another 24 homes were sold in February. In March, that number more than doubled to 52. In April there were 50 sales. In May, it jumped to 60, which is a little above average for the last two years.
In the 12 months ending in May 2015, 541 homes were sold – 45.1 per month. In the 12 previous months, the number was 588, which comes to 49 per month.
These numbers show that reduced inventory and faster sales go hand in hand. What’s interesting is that there appears to be a solid number of motivated buyers as the number of single-family home sales hasn’t decreased even with fewer homes to choose from.
Look for these trends to continue in Redwood City, which is still one of the more affordable communities in Silicon Valley.