2024 Redwood City Real Estate Market Forecast

Scenic Redwood City is at the midpoint of the San Francisco Peninsula. It's fantastic climate encourages many people to get out in the great outdoors to explore Edgewood Park Natural Preserve or enjoy Pickleball and other activities at Red Morton Community Park, Stulstaf and the many other local parks.

Not only that, Redwood City is home to some of the best schools in California, including North Star Academy rated #1 as an Elementary School and #6 as a Middle School in the state.

In the hub of the high-tech industry, Redwood City attracts many looking for jobs in the software and cybersecurity industry. And across the Redwood City housing market, you'll find a range of housing choices, including gorgeous luxury real estate with water or city light views.

The Redwood City real estate market has historically been one of the most stable and best appreciating in the country. The current median home price is around $1,192,600, according to the National Association of Realtors. Over the past seven years, equity in the market has increased considerably, with home equity increasing approximately $427,000. Although recently homes have had equity decline by an average of $179,230 in 2022 due to increased interest rates, real estate remains a solid investment, with equity projected to grow over the next several years due to high demand with limited inventory. This is particularly true for premium locations.

However, prices in the greater San Francisco market are down compared to a year ago, and they continue to weaken in the current market. High mortgage rates continue to deter buyers who aren't sure whether they are ready to make the move, even with rates coming down slightly in recent days. This decline in overall home value could make it the ideal time to buy in the Redwood City market

That said, continued economic uncertainty and the gradual increase of housing inventory by sellers who must sell will continue to create uneven and tentative demand by buyers. For example, the average price of a home in Redwood City declined slightly over the past several months. Some think 2024 will bring falling prices and buying opportunities with the possibility of lower interest rates years out. The most resilient and active portion of the market are smaller, single family homes, in top condition and locations.  Often these homes are  still receiving multiple offers.

While buyers are looking into smaller homes and home prices are starting to come down, some buyers are finding that it's still difficult to negotiate as much as they might like on the asking price of a home. Around 28% of buyers are purchasing their homes for more than the asking price, the National Association of Realtors notes. That could mean excellent news for sellers: they can often hope to sell their home for a reasonable price.

On average, the greater San Francisco area has seen 3,124 permits for one-unit buildings over the past 12 months. Around 12% of buyers prefer to move into new-construction homes due to their desire to avoid potentially problematic plumbing or electricity issues. About 88% of buyers purchase a previously owned home due to the better price and availability for established properties. New construction throughout the greater San Francisco area has remained relatively limited, but consistent through the years.

If you're thinking about purchasing a home in Redwood City, there are several things you need to take into account:

Before you start exploring homes on the Redwood City housing market, it's important to consider how much house you can afford. Research the cost of living in Redwood City, which may be higher than in the rest of the country. Don't just think about the cost of monthly mortgage payments. You must factor in the cost of utilities — especially if you're moving from a smaller home to a larger one or have previously had your utility costs included in your rent — and the cost of things such as home insurance and basic home maintenance.

You need to carefully evaluate two key things before purchasing a home in Redwood City. First, you need to determine your must-haves. Carefully think through the elements that are most important to you. Do you want a luxury home with a pool? A home with a fireplace? Are you looking for specific amenities, such as an in-home spa or theater? Know what those must-have items are to include in your property purchase.

Next, consider your dealbreakers. If there are elements that you do not want your property to have, you must clearly name them. For example, if you need a home without many stairs or do not want the responsibility and maintenance that comes with a pool, make sure you name those elements up front. Discuss them with your real estate agent so you know you are looking at the best properties for your needs.

If you want to purchase a property in Redwood City, you need a local real estate agent to help you find the perfect property. A local real estate agent can help walk you through available properties and amenities, give you a better idea of what you can expect as you budget for the perfect property, and connect you with other experts in the area who can help with the home buying process.

As you explore homes for sale in Redwood City, remember that location matters. How long will it take you to commute to work? Do you primarily work from home, or will there be frequent occasions when you have to go to the office? What about schools? Is it essential for you to have your children in a specific local district? Talk to your real estate agent about any vital location questions.

If you're interested in a home in Redwood City, Katherine Hunt can help you find a property that fits your unique needs. Reach out today to learn more about the properties available in Redwood City and connect with an expert team that will help get you into your new home.

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