Of the 13 Marin County towns and cities we usually follow, 7 are now
characterized as being "Very Strong Sellers' Markets"---- meaning that
56% or more of listings in those towns are in contract. Housing
inventory in the County is incredibly low. At the end of December,
Months' Supply of Inventory (MSI) was only 1.9 months for both Single
Family Residences (SFR) and
Condominiums. Reluctant Sellers continue to hold their properties off
the market while waiting for higher home prices to arrive. That time may
be here sooner than many people thought.
According to a January 16 article
from Data Quick, a La Jolla,CA-based real estate news service, the
median price of a Marin County home in December was up 27.6% from
December 2011 (with about half the increase coming from appreciation, and the other
half coming from a change in market mix, meaning more expensive homes
are being sold) . This was just a few points off the Bay Area average
appreciation of 32%--a year-over-year increase the Data Quick Article
notes is "The highest in Data Quick's statistics, which go back to
1988". The article goes on to state that "the median reached a high of
$665,000 in June/July 2007 and then fell to a low of $290,000 in March,
2009". The alticle also notes: "At the median's current rate of
increase, sometime this spring it will
have recovered about half of its (the median's) loss since its summer
2007 peak."
Buyers continue to pounce on attractive new inventory, and multiple
offers are once again common. Recently, an attractive, small single
family home in a West Marin town received a rumored 33 offers, going
into contract at a price that was reportedly almost double the asking
price. Extreme? Yes! Representative of the average deal? No. But Marin
County real estate is getting competitive again, after several years of
bargain basement homes for buyers.
In real estate, as in life,
timing is, if not everything, at least an important factor. People who
make money in markets are usually those who receive, recognize, and act
on information before everyone else climbs on board. We have said for
many months now that it was time for buyers to jump into the market to
take advantage of low prices and interest rates. Prices have risen, but
they are still a bargain compared to 2006/2007. Interest rates are still
incredibly low. And there is other good news for buyers---- Even with
the price increases, there are still pockets of opportunity in the
market. On January 29, only about 37% of homes in the $1million to $1.9
million range were in contract. In the $2million and up range, the
figure was only 26-27%. Don't wait too long, because this will change
too! Buyers in the hot, under-$1million range can still be
successful-----with a good REALTOR and an attitude of optimism and
persistence.It is not uncommon for buyers to make 4 or more offers
before getting the home they want,but it can be done----hang in there
and prepare to be aggressive with offers when the situation calls for
it!
Sellers are now in a pocket of opportunity similar to
that occupied by buyers a year or two ago. What a great time to take
advantage of the current shortage of housing inventory! An experienced
local REALTOR can be an invaluable resource in assessing your home's
current value and formulating and implementing a market strategy
designed to maximize its value. Don't put off calling your local REALTOR
to discuss getting your home on the market in time for the spring sales
season. Beat the crowds. Opportunities don't last forever!
More next time---
Until then, best wishes to all,
Fred
visit me at http://www.fredanlyan.com
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