Monday, June 28, 2010

The Anlyan Report. Marin County Real Estate 6.25.10

Hello Everyone,

Dow Jones down just under 3% for the week on continuing investor jitters about jobs, the economy, the Euro---- and now another concern has surfaced. Seems that "M3", a measure of the money supply that inclues a broad range of bank accounts, cash, and other assets, has been shrinking at a rate not seen since the Depression years, raising fears of deflation. Read the full article at http://www.telegraph.co.uk/finance/economics/7769126/US-money-supply-plunges-at-1930s-pace-as-Obama-eyes-fresh-stimulus.html

San Diego-based real estate reporting firm MDA DataQuick, in a report dated June 17 made the following observations about the Northern California real estate market:

* Bay Area housing units sold up 11% in May compared to the same period last year.
* Units sold in May up 18% from April. This compares to a historical April/May increase of 6.9%
* Sales of higher-priced homes increasing and the low end slowing, most likely due to tax credits and greater availability of jumbo loans helping the upper end and reduced pace of foreclosures moderating lower-priced sales activity
full text available at:
http://www.dqnews.com/Articles/2010/News/California/Bay-Area/RRBay100617.aspx

Here in Marin, sales activity continues to be mixed. Agents reporting some open houses extremely well-attended, while others have few visitors. Varies by town, neighborhood, price range, and specific homes. Local offices busy, with lots of new open escrows, but many deals at significant discounts from listing prices. Multiple offers more common on well-priced homes but even so, sales prices not going very far, if at all over list price in most cases. Buyers' and Sellers' best asset in this market is a professional REALTOR experienced in their specific market.

Single Family Residences (SFR)
Active inventory up very slightly but mostly stable at 1308 units compared to 1294 at last report. Percentage in contract down at 25.08% overall, a balanced market. The under-$1million segment also down at 33.97%--- was 40% five weeks ago. $1-2million segment down as well, while the $2-3million and $3million and up segments both show modest increases. Year-to-date (YTD) units sold (June 22) still up, with 845 SFR's sold compared to 602, up 40.3% from the same period time last year--- deceleration of recent weeks continues with this drop from last report's 42%. Average Days on Market (DOM) at 93, an improvement from 110 last year at this time.

Marin County Condo's active inventory at 368 and percentage in contract at 33.42%. Both figures relatively stable with small increases from the June 8 level of 365 units and 32.88% in contract. Average DOM at 117, up 3 days from last year's 114 at this time. YTD units sold at 229, up 11.17% from the 206 units sold by this time in '09 and down from last report's 13%.

Local real estate recovery definitely seems to be in progress but still sensitive to volatility of broader economic conditions. Buyers continue to be careful, looking for value. Sellers and their agents need to be realistic, sharp, and ready to respond to the demands of the market. Pricing, preparation, presentation, market awareness, marketing ability, and willingness to respond to local market conditions are keys to success.

more next time---

Until then, best wishes to all,
Fred
P.S. for access to spreadsheets please see http://www.fredanlyan.com

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