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Median Price List $1,299,000

Average List Price $1,814,147

Asking Price Per Square Foot $708

Average Days on Market (DOM) 28

Inventory of Properties Listed 61

Most Expensive Listing $25,000,000

Least Expensive Listing $349,900

Average Age of Listing 61

Percent of Properties with Price Decrease 15%

Percent Relisted (reset DOM) 10%

Percent Flip (price increased) 5%

Median House Size (sq. ft.) 1,900

Median Lot Size 4,501 6,500 sq. ft.

Median Number of Bedrooms 3

Median Number of Bathrooms 2

Local Real Estate Market UpdateRedwood City

Report for the week of July 27, 2015 Trend

The median list price in Redwood City this week is $1,298,000. The61 properties have been on the market for an average of 28 days.

Demand measured by the MarketAction Index is increasing and days on market is trending downward. Even as more properties come available, these are positive trends for the market.

This Week

Altos Research Value StatisticsMarket Action Index Strong Sellers 72.8

The Market Action Index answers the question "How's the Market?" by measuring the current rate of sale versus the amount of the inventory. Index above 30 implies

a seller's advantage. Below 30, conditions give the advantage to the buyer.

The market has started cooling andprices have been flat for severalweeks. Since we're in the Seller'szone, watch for changes in MAI. Ifthe MAI resumes it's climb, priceswill likely follow suit. If the MAIdrops consistently or falls into theBuyer's zone, watch for downwardpressure on prices.

Supply and Demand

QuartileMedian

PriceSq. Ft. Lot Size Beds Baths Age Inventory New Absorbed DOM

Top/First $2,498,000 3,1320.25 -

0.50 acre4.0 3.5 29 15 4 2 19

Upper/Second $1,688,861 2,2906,501

8,000 sq. ft.

3.0 2.5 54 15 5 3 14

Lower/Third $1,088,000 1,6454,501

6,500 sq. ft.

3.0 2.0 66 15 4 4 39

Bottom/Fourth $789,490 1,0454,501

6,500 sq. ft.

2.0 1.0 73 16 4 4 41

Characteristics per Quartile

Though this week saw relatively little price change from last week, the market seems to be show some signs of strength. The Market Action Index is a good leading indicator for the durability of this trend.

Median Price

Prices have generally settled at a plateau, although Quartile 3 has been declining in recent weeks. We'll need to see a persistent shift in the Market Action Index before we see prices across the board move from these levels.

Quartile Price

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Powered by Altos Research LLC | www.altosresearch.com | Copyright 2005-2014 Altos Research LLC

In a market where prices are rising some, price per square foot is essentially flat. This often implies that new homes coming on the market are pricier, and also larger than older homes. As a result the value one can buy stays the same.

Price per Square Foot

Inventory has been climbing lately. Note that rising inventory alone does not signal a weakening market. Look to the Market Action Index and Days on Market trends to gauge whether buyer interest is keeping up with available supply.

Inventory of Properties Listed for Sale

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The Redwood City market is currently quite strongly in the Seller's Advantage zone (greater than 30). The 90-day Market Action Index stands at 72.79; indicating very little supply relative to the demand.

Market Action Index

Not surprisingly, all segments in the market are showing high levels of demand. Watch the quartiles for changes before the whole market changes. Often one end of the market (e.g. the high-end) will weaken before the rest of the market and signal a slowdown for the whole group.

Market Action Index per Quartile

Residential house prices are a function of supply and demand, and market conditions can be characterized by analyzing those factors. Watch this index for sustained changes: if the index falls into the Buyers

Advantage zone (below 30) for a long period, prices are likely in for a downward correction.

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The properties have been on the market for an average of 28 days. Half of the listings have come newly on the market in the past 7 or so days.

Days on Market

It is not uncommon for the higher priced homes in an area to take longer to sell than those in the lower quartiles.

Days on Market per Quartile