for access to spreadsheets please see http://fredanlyan.com
Hello Everyone,
Another wild week! Dow Jones all over the map. Lehman Brothers fails. AIG teeters on the brink. FED puts together a rescue plan. White House seems to be more on top of this than Hurricane Katrina. Lots of criticism about bailing out the "fat cats", but govt. sees no real choice and is compelled to save them while backstopping the U.S. and world financial system. This action seems to calm the markets and Dow returns to sanity or a facismile thereof. Once all this is in place, options for next president will be significantly narrowed.
Here in Marin County, buyers and sellers understandably concerned about availability of mortgage money as well as price levels, with buyers wanting to wait until market reaches bottom and sellers nervous about whether to sell now or wait until value comes back up. Move-up buyers have a great opportunity to save money even if they get less for their present home. The savings on a more expensive home will outweigh any loss on the former property. Of course if it is possible to keep the old home and rent it out while waiting for further market appreciation, that would be an even better solution!
Condo's the star in this week's Marin real estate production! Condo market overall went to 35.37% in contract, with 133 of 376 listed properties in contract. This is technically a strong sellers' market. Nice to see some renewed strength in this segment, albeit at significantly lower prices than a year or two ago. Properties finally moving again but very price sensitive and buyers selective and skittish with a number of properties falling out of escrow. Market at -20% in YTD units sold, compared to this time last year. This is a major improvement from earlier this year and follows a trend that has been going on for quite a few weeks now. Average YTD sold price $520,729 vs last year's $641,225, and days on market (DOM) at 92 vs. '07's 76 at this time.
Single Family Residences (SFR) slipped again this week to 20.61% in contract, a buyers' market overall. Varies, of course, by city, town, neighborhood, condition, etc. Under $1 million "entry level" market still a sellers' market at 27.39% in contract, but just barely. Prices holding up better than condo's though with average YTD sold price at $1,314,021 vs. last year at this time $1,373,219 and DOM at 77 vs 07's 70 days at this same date. Word from local mortgage brokers is that loans are pretty much all "full doc" right now, with jumbo loans much scarcer than previously. This may improve a bit as more order returns to the national financial scene. In the meantime, buyers with cash are in a very good position.
More financial events playing out daily and it will probably be a while before we see the final result. One thing for sure though, if you need a place to live it is tough to beat Marin County, and over the long run, I'd bet on more price appreciation---
More next week.
Until then, best wishes to all,
Fred
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