Hello Everyone,
Happy New Year, and welcome to 2010!
Emerging from the traditionally quiet period of the year (regarding real estate, that is), we see that is has not been all that quiet. Numbers of accepted offers for both Single Family Residences (SFR) and Condominiums were double or more than in the same period in the last two years. Months Supply of Inventory at the end of December was 3.5 for SFR's and 4.1 for Condo's, lowest in over two years. Total SFR units sold finished 2009 at 1656, 5.5% more than 2008. Condo's at 497 sold for the year down just 2% from the year-ago figure. Some of this activity, no doubt, due to buyers desire to get taxpayer credits while they last and to take advantage of historically low interest rates which are bound to go up sooner or later. The question is when. Will the Fed start to raise interest rates while employment is still at 10% +? Is there another round of foreclosures coming that will depress housing prices further. As the toy crystal ball I had as a child was fond of saying: "answer hazy, ask again later". One thing is for sure. Buyer taxpayer credits will end, and interest rates will eventually rise. Prices and interest rates are excellent now. Many think this is a great time to buy. Time will tell.
City-by-City report out this week shows percentage in contract down in 5 Marin cities and towns, up in 7, and essentially unchanged in one (San Rafael, 37%). Belvedere lowest at 14.29% in contract, even after a 2 point rise, while Fairfax has the top spot at 59%, and still-hot Novato comes in a close 2nd at 53.6%. Pricing still critical in all Marin County markets, with overpriced listings sitting on the market and eventually withdrawn, cancelled, or selling for significantly less than properties "priced right" from the beginning. No time to push the envelope or test the market. Pricing, preparation, and presentation still critical factors in listing and selling a home. Sellers advised to seek the advice of experienced local REALTORS who know the market.
Market Action Report for both SFR's and Condo's attached again this month. Please take a look and let me know if you like these reports and find them useful.
2010 promises to be an interesting, and perhaps a pivotal year for real estate. It will be interesting to see what happens.
More later---
Until then, best wishes to all,
Fred
p.s. for access to spreadsheets please see http://www.fredanlyan.com
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