Hello Everyone,
We are still in a very active real estate market, even though we have entered the traditionally slower holiday season. A snapshot of our current market might read something like this: "Inventory low; percentage in contract, relatively high; prices down from the same time last year, but up slightly from October. Frustrated buyers snapping up good new listings as soon as they come on the market."
A December 14 report from DataQuick, the San Diego-based real estate news service confirms the above characterization of the market, and adds that distressed properties continued to make up about 47% of all home sales in the Bay Area in November, a number it says is up slightly from 45.2% in October, and 46.7% a year ago. According to the article, investors purchased over 22% of Bay Area real estate in November, and over 27% of all sales appeared to have been for cash. For some time, we have been noting this trend among investors and we think it is worth repeating. Read the full text of the article at:
http://www.dqnews.com/Articles/2011/News/California/Bay-Area/RRBay111214.aspx
Single Family Residences (SFR)
For the period ending December 13, there were 795 single family homes listed on the Marin MLS. 303 of them, or 38.11% were in contract. In the under-$1million range, it was 48.25%;
$1million to $2million, 26.32%; $2million to $3million, 14%; and $3million-up at 9.52%. Of these, only the $2-3million range constituted a drop---- it was 17.86% at last report. But with only 50 listings in the segment, 2 or 3 homes can make this kind of difference so probably not statistically significant. What is significant is that homes in the over-$2million range still represent an incredible value for those who want and can afford them. YTD SFR's sold as of 12.13.11 at 1816 vs. 1744 the same time last year, an increase of 4.1%. Days on Market (DOM) at 114 vs. 111 last year, and average sold price at $996,650 compared to $1,031,860 at the same time in 2010.
Condo's
On December 13, there were 266 condominiums listed on MLS in Marin County, and 123 of them, or 46.24% were in contract. Even though that represents a 3 point drop from last report, it is an impressively high number. In the under-$1million segment (all but 9 units), the percentage in contract was 47.47%. For condo's over 1 million, only 1 of 9 listed units was in contract, or 11%. YTD condo sales as of 12.13 were 547, compared to the year-ago figure of 454, representing an increase of 20%. DOM were up from 138 last year at this time, to 145, and average sold price was $374, 475, down from the comparable 2010 figure of $396,894. Some buyers have been getting very good deals on condo's that they would not have been able to afford just a few years ago. They are taking advantage of this window of opportunity to get a foothold in the Marin County real estate market. Some of these units are in attractive developments and require only cosmetic repairs. Rewards in this market are going to those who recognize value and are willing to act.
More next time. Until then, wishing you all the best for the Holidays and the New Year ahead,
Fred
p.s. For access to spreadsheets please see my website http://www.fredanlyan.com/
The next report will be in January
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