Any buyer scouring the market for a home in the Peninsula can tell you there are no “deals” out there. As we have discussed many times before, Redwood City has been the best kept secret in the Peninsula for a very long time – until now.
The rapid growth we have been seeing throughout the Peninsula has made its way to Redwood City. In Q2 of 2014 we have seen staggering growth of median price at a rate of roughly 18 percent as compared to Q2 2013. Median sales prices are now consistently over $1million, and this quarter we push beyond the $1.1Million mark. Comparatively, the rate of increase from the prior year was roughly 21%, but median price was still hovering around 900k.
Sales are consistently strong and we are seeing a steady stream of buyers trying to get into the market before they are priced out entirely. Eager buyers are also pressured as they know that interest rates continue to be at record low levels, which won’t remain that way forever. Combined, these are causing home prices to soar to new levels.
How long will this last? Every buyer, seller, agent, and economist has their own theory. At this point, it’s best to do what works for your own situation. If you can sell now, do it. There are plenty of buyers in the market to satisfy the supply, and it’s looking like we are at a new all-time high. If you’re looking to buy a home to live in for multiple years, do it now. We can’t predict the exact timing of any changes to the real estate market, but can make a case as to why now is a good time to sell or buy.