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Median Price List $1,350,000

Average List Price $1,373,354

Asking Price Per Square Foot $671

Average Days on Market (DOM) 40

Inventory of Properties Listed 51

Most Expensive Listing $2,998,000

Least Expensive Listing $116,000

Average Age of Listing 52

Percent of Properties with Price Decrease 16%

Percent Relisted (reset DOM) 6%

Percent Flip (price increased) 6%

Median House Size (sq. ft.) 1,810

Median Lot Size 6,501 - 8,000 sq. ft.

Median Number of Bedrooms 3

Median Number of Bathrooms 2

Local Real Estate Market UpdateRedwood City

Report for the week of May 25, 2015 Trend

The median list price in Redwood City this week is $1,350,000. The51 properties have been on the market for an average of 40 days.

With inventory, days-on-market, and the Market Action Index all recently plateaued, the market is not sending strong directional signal for the nearterm outlook.

This Week

Altos Research Value StatisticsMarket Action Index Strong Sellers 79.4

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.

Home sales continue to outstripsupply and the Market Action Indexhas been moving higher for severalweeks. This is a Seller's market sowatch for upward pricing pressure inthe near future if the trend continues.

Supply and Demand

QuartileMedian

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

Top/First $2,011,944 3,2350.25 -

0.50 acre4.0 3.0 24 12 3 3 83

Upper/Second $1,495,000 2,4906,501

8,000 sq. ft.

4.0 2.5 46 13 4 3 12

Lower/Third $1,199,000 1,6806,501

8,500 sq. ft.

3.0 2.0 59 13 6 4 20

Bottom/Fourth $749,900 12394,501

6,500 sq. ft.

3.0 2.0 68 13 5 5 45

Characteristics per Quartile

The market appears to be hovering around this plateau. This week prices eased down a bit. The Market Action Index is a good leading indicator for the durability of this shift.

Median Price

Prices in most of the market have stabilized recently. Only Quartile 4 shows any price increases in the last few weeks. Often this condition happens in markets where demand has fallen (for example, due to micro-location variables) but supply is still relatively short. Buyers are focusing on the lowest price homes in the area.

Quartile Price

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

While prices have been basically flat, the price per square foot has been heading ownward. While not a sign of broad strength in a market, larger homes are coming more available and buyers are tending to get more home for their money.

Price per Square Foot

Inventory has been relatively steady around these levels in recent weeks.

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 79.37; 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 40 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