Redwood City remains in relatively good shape compared to these other communities. Our inventory is higher then normal, but at least it’s below the 2008 highs thanks in part to fewer sellers coming to market. Meantime, year to date sales are about 20% better then this same time last years and about 5% then this same time in 2008. So far un 2010 we have sold about 333 single family homes, which is not bad, but falls far short of the 500 or so homes that we were selling in years like 2002-2005.

So why with all the talk about the nation’s home selling tanking has Redwood City held up so well. Home sales fell nationally after the $8,000 federal tax rebate ended. If you live in Nebraska and your home costs $40,000 then the tax rebate is a big deal. However, while it might be nice to get the rebate, the Bay Area’s $1M home buyers are not going to rush into buying a house to receive an $8,000 rebate.

I believe that a big ingredient in helping keep our real estate afloat has been the incredibly low interest rates. This is making home more affordable for those who need to buy.

Meantime, as you view the average price increase for single family homes in Redwood City, keep in mind what I reported last month. The increase is more a matter or larger homes starting to sell again and not actual value increases. This is demonstrated by the data below showing each month the average size of the homes and lots have increased in Redwood City.