Zip Code Spotlight: Redwood City, 94061
This post first appeared in the February 2009 edition of Cirios Trends.
Real estate, as they say, is local. Nothing could be more true, especially in the current market.
While the zip code is admittedly an imperfect geographic marker for residential real estate analysis, its tough to get reliable data that’s much more detailed. Zip code level analysis can still provide a relevant snapshot of the market and demographic activity in the area.
This month’s zip code is 94061, which encompasses the part of Redwood City, CA west of El Camino Real on either side of Woodside Road (see map below). Homes in this area vary widely in size and price, making zip code level data tricky to interpret.
Generally, as you move west from El Camino, values increase and houses get bigger. The Emerald Hills area (near Cañada College) and the southwest corner of the zip code, near Stockbridge Avenue in Atherton, are both very desirable neighborhoods.
Current listings of single family residences in the area range from $299,000 for a 2 bed, 1 bath teardown near El Camino and Woodside Road to $1,995,000 for a large, newly constructed home near Atherton. The median listing is a 1,440 square foot, 3 bed, 2 bath listed for $788,000.
To get a sense of how this area is truly a bifurcated market, the “1” on the map corresponds to 417 Redwood Ave, a 4 bed, 2 bath with around 2,000 square feet of living space currently listed at $795,000. The “2” marks 944 Castle Hill Road, an updated home in much better condition, but with virtually identical characteristics listed for $1,225,000. Clearly, zip code isn’t everything.
Examining sales trends in the area (see graph below), the pattern is to be expected. Prices rose steeply through the end of 2007, since higher-end markets have taken longer to succumb to the housing market turmoil. Prices have fallen steadily for the past year or so, as demand has dried up. We expect this trend to continue, as homes in this desirable area return to more affordable levels.
In a market as varied as 94061, median home prices trends not only reflect changing property values, but also the buying patterns in a given area. Are property values really falling this quickly, or are cheaper homes selling more often than expensive ones? For an answer to this question, check out Austin Nelson’s “Deconstructing the Average” on www.ciriosre.com.