2012 Market Trends for real estate in Redwood City

2012 Market Trends for real estate in Redwood City

Here are the 2012 Market Trends for real estate in Redwood City. Redwood City homeowners have

Redwood City arch
2012 Market Trends for real estate in Redwood City

a lot to cheer about when ringing in the New Year on their home values. They saw the cost per square feet of their homes go up 10.5%, the average sale price jumped up 11% and best of all the Listing Price: Selling Price Ratio (LP: SP) ended the year up 2.8%.

These positive upticks in Redwood City real estate I feel can be contributed to 3 factors; 1.) Historical low-interest rates, 2.) Inventories down by 30% or more all year, 3.) Realistic home sellers using pricing strategies, which attracted home buyers.

The LP:SP ratio remained steady in an upward trend all of 2012. January started at 98.4% and ended up in December at 102.2% for any a 101.0% for the year. (LP:SP ratio is the different between the home seller’s asking price and the final selling price.)

How long a home stayed on the market for sale before it has sold went down 63% from 2011 to 46 days in 2012. Interesting that number was under 40 days between June and November of 2012.

The days to sale went down and the LP:SP ratio went up and the “sweet spot” for homes sold in Redwood City for 2012 was $600,000 – $1,000,000. 70% of all homes sold in 2012 in Redwood City sold for under $ 1,000,000.

The Average Sale Price for 2012 was $ 838,607 in Redwood City. January ended at $749,183 and December ended at $ 925,000. The reasons for this increase of 11% can be found above. Also, between the months of May to August only 8% of the housing inventory got replenished with new houses. The basic economic principle of supply and demand applies.

2012 saw the price per square foot start at $446 and zoomed to $545 in August and settled in at $498 for the year. This was a 10.5% increase in price per square foot Redwood City home buyers were willing to pay during 2012. You can blame some of the higher costs on increase in construction materials and added code compliance costs by various governmental agencies.

For the year of 2012 homeowners had a pretty good year. If Redwood City homeowners plan on selling their homes in 2013 I believe they will see some of the same results. I will expound on this belief in future posts on my predictions for 2013. Be sure to return and read them within the next week.

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