According to an October 17 report by DataQuick,
a San Diego-based real estate news service, a total of 300 homes sold
in Marin County in September, at a median price of $750,000. The figure
includes both single family homes and condo's and reflects an increase
of 15.4% in price and 11.9% in numbers of units for sale, compared to
the same period last year. In August of this year, the comparable
figures were 350 units sold at a median price of $760,000. The article
notes that in the nine-county Bay Area real estate market, September
marked the second month of a month-to-month decline in the median sales
price which, it stated, reached a high of $665,000 in June/July of 2007,
and a low of $290,000 in March of '09.
Although the median price
of Bay Area homes has increased year-over-year, every month for the
last 18 months, DataQuick's president, John Walsh, predicts "It's likely
we'll see year-over-year price gains trend lower for the forseeable
future". This, the article states, is a result of higher mortgage rates,
increasing inventory of homes for sale, and decreasing purchases by
investors, as well as changes in market mix, or the types of homes being
sold. For more details, see the complete article.
Further
research into the current statistics for Marin County reveals that,
overall, there are approximately 878 active listings on the Marin MLS
for Single Family Residences and Condo's. 347 of these, or 41%, are in
contract, indicating a slight sellers market for the County as a whole.
When we checked the numbers back in July, 386 of 878 listed properties
were in contract, so market activity, though not slowing dramatically,
has dropped back just a bit, creating an opportunity for some buyers who
may have felt buffeted by the frenzied pace of offers and sales earlier
in the year. The numbers, since they are averages, can obscure the fact
that, within the County, individual market can vary greatly.
Currently, the most active markets are: Larkspur-- 9 of 16 listed
properties in contract, or 56%; Sausalito--- 20 of 36 properties in
contract, or 55.5%;Corte Madera, at 53.8%, with 14 of 26 listed
properties in contract; Novato---82 of 163 properties in contract for
50.3%; San Rafael, with 89 of 186, or 47.8%; Fairfax 45.16%; San
Anselmo, 43.9%. These are hot sellers' markets with lots of buyer
competition, but good homes can be found, with persistence and the aid
of an experienced local REALTOR.
Currently active markets with
slightly less pressure and competition are: ; Greenbrae at 36.36% in
contract, and Mill Valley, at 34.78%.
The markets with the lowest
percentage in contract and therefore presenting the greatest opportunity
for buyers, albeit mostly on the higher end are: Kentfield, at 29.17%
in contract; Ross, 27.27%; Tiburon,23.4%; and, the Queen of them all,
Belvedere, with only 9.3% of some admittedly very high-end homes in
contract. These communities feature a preponderance of higher-priced
homes. But, for the high-end buyer, the opportunities are real. For more
details on specific communities, neighborhoods, and individual homes
contact an experienced local REALTOR.
More next time!
Until then, best wishes to all,
Fred
visit my website at http://www.fredanlyan.com
or email fred@marinmodern.com
Monday, October 21, 2013
Thursday, September 5, 2013
The Anlyan Report. Marin County Real Estate. 9.5.13
DataQuick, the La Jolla, CA-based real estate news service
noted in an August 15 report that the number of homes sold in the Bay Area in July was
the highest since 2005. According to the article, the 9,339 homes sold represented
an increase of 18.3% from the previous month and a 13.3% increase over July of
2012. The article quotes Data Quick’s president, John Walsh, characterizing the
current market not as a “frenzy”, but as a market that is in the process of “re-balancing”
itself and “regaining lost ground”. According to the article, Mr. Walsh noted
that increasing prices would eventually
attract more sellers, and the increased supply of homes for sale is expected to moderate
future price increases.
Here in Marin County, there were 224 Single Family Residences
(SFR) and 68 Condo’s sold in the month of August. This compares to 250 and 76
in July, a decrease of around 10.5% for
both categories. Sales mostly limited by lack of inventory, still following a
long southward slide as many potential sellers continue to be reluctant to place their
homes on the market and await further price appreciation. Inventory of homes
for sale at the end of August was just 430 SFR’s and 74 Condo’s. This compares to August of ’12, when
there were 822 SFR’s (66.1% drop) and 218 Condo’s (47.7% drop) available for
sale. The supply of homes for sale in the County, characterized as Months’
Supply of Inventory (MSI) continues to decrease. At the end of August, it was
1.9 months for SFR’s and 1.1 months for Condo’s. This compares to 2.6 months
(SFR) and 2.2 months (Condo) in July, and 3.5 months (SFR) and 3.2
months (Condo) in August of 2012. Days on Market (DOM) are also dramatically
lower. The current 63 days for SFR’s and 47 for Condo’s represents a decrease
of 29% (from 89 days) for SFR’s and 55% (from 105 days) for Condo’s compared to
August of 2012. Prices continue to
increase as buyers compete for a limited number of listings. Price per square
foot at the end of August averaged $527/sf for SFR’s and $400/sf for Condo’s. Compared
to August of 2012, this represents an increase of 19% (from $443/sf) for SFR’s
and 25.4% (from $319/sf) for Condo’s. At the end of August, the average SFR was
selling for 100.9% of asking price, while Condo’s sold, on average for 104.4%
of asking price.
This is the long
way of saying that the current real estate market in Marin is very
competitive, with a shortage of homes available for sale compared both
to demand and to historical inventory levels. As a result, many buyers
are paying 4 or 5 percent or more over asking price. Even 10% is not
unusual. In spite of this, qualified buyers who are persistent are
finding and buying homes, often after making several offers. Sellers who
have been waiting may find that the current market offers the
opportunity they've been seeking. Recommendation for both Buyers and
Sellers: Call an experienced local REALTOR---- an invaluable asset this
market!
Wednesday, April 3, 2013
The Anlyan Report 4.3.13. Market Sizzles, Buyers Battle, Sellers Sit and Wait???
Data Quick, a La Jolla, CA-based real estate information
service, in a report dated March 14, 2013, noted the following about the Bay
Area real estate market:
- February’s median home prices up 24.6% compared to February of 2012. The Service attributed about half of the gain to price increased, and the rest to “market mix”, meaning that fewer low-priced distressed-property sales were taking place.
- February foreclosure resales, at 13.6% of the Bay Area market, were down from 26.4% a year ago. Short sales, at 21.4% were also down substantially from the year-ago figure of 27%.
- Absentee Buyers (mostly investors, according to the article) purchased 28.2% of Bay Area homes in February, paying a median price of $303,000. This compared to the same time last year when they represented 25.6% of the market and paid a median price of $245,000.
A chart accompanying the article noted Marin County February
home sales of 201 units--- just 2 fewer than in February of 2012. But the
median price rose 21.4%, from $535,500 to $650,000.
The Marin County City by City Report, out this week, shows 5
of the 13 cities and towns we follow to be Very Strong Sellers’ Markets, with
56% or more of listed properties in contract on April 1, 2013. Corte Madera led
the pack, with 15 of 19 listed properties in contract, an incredible 78.95%!
Novato was a close second, with 71.6%, or 106 of 148 listed homes in contract.
Greenbrae came in third, at 66.7% (8 of 12 homes in contract). San Rafael, 4th
(106 of 169 properties in contract) at 62.7%, and San Anselmo rounded out the
top 5, with 36 of 62 listed properties in contract, or 58.02%!
Mill Valley (54.88%), Fairfax, (54.55%), and Sausalito
(54.29%) all tied for 6th place. Ross was slightly below at 47.06%, followed
by Tiburon (37%), Kentfield (35%), and finally, Belvedere, at 19%. These last four
figures probably reflecting the fact that jumbo loans are still more difficult
to obtain than standard financing. Well-qualified prospective buyers for these
high-end communities would do well to make a move now rather than waiting until
the housing recovery pushes these properties further up the ladder and possibly
out of reach.
Low Marin County Housing inventory continues to challenge
would-be buyers, with only 287 Single Family Residences (SFR) and 60 Condo’s
available as of March 31. This compares to 448 SFR’s and 111 Condo’s in February,
and 837 SFR’s and 223 Condo’s in March of 2012! Current inventory is down to
1.6 months for SFR’s and 1.1 month for Condo’s. Last year, in March, it was 4.5
months for SFR’s and 3.9 months for Condo’s. At some point, it makes sense that
basic economics of supply and demand would entice more sellers to place their
homes on the market--- but it hasn’t happened yet. There were 227 new listings
for SFR’s and 61 for Condo’s in March. This compares to 303 and 75 in March of
2012. Attractive, well presented, and well-located new listings are being
snapped up by buyers, who are competing with one another and often bidding up
prices by 5-10% or even more. It is not unusual to see 4, 6, 10, or even more
offers on desirable properties. Potential sellers who are weighing the options
may want to contact their local REALTORS to get an idea of the current value of
their homes. It may be a pleasant surprise!
More next time--------
Until then, best wishes to all,
Fred
Friday, February 1, 2013
The Anlyan Report. Marin County Real Estate 1.29.13. Weather Cool, Market Hot!
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
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
Sunday, December 16, 2012
Marin County Real Estate. The Anlyan Report 12.16.12
Sellers. Are You Missing The Big Wave?
This month's blog is for sellers, potential sellers, and would-be sellers who are sitting on the sidelines waiting for the market to improve.
I just spent the last 2 and a half hours looking up, writing down, and digesting the November real estate statistics for Marin County. It seems to me like a great time to sell, so I can't understand where all the sellers are! Let me share with you some of the numbers I found:
Number of homes sold in November: 2012 2011 2010
Single Family 185 164 147
Condo 56 62 46
Inventory of homes for sale 11.30:
Single Family 421 846 1072
Condo 96 263 332
Months' Supply of Inventory:
Single Family 2.3 5.2 7.3
Condo 1.7 4.2 7.2
Ratio of Sales Price to List Price:
Single Family 99% 96.5% 95.2%
Condo 101.3% 95.7% 96.7%
New Listings in November:
Single Family 118 150 157
Condo 33 54 55
The Greenbrae housing market is sizzling right now, with only 12 current listings, and 9 of them in contract--- a red-hot 75%. Novato is not far behind, with 126 of 174 current listings in contract--- 72.4%! Larkspur (9 of 16, or 56.25%), San Rafael (95 of 170, or 55.88%), Fairfax (11 of only 20, or 55%), and Corte Madera (only 6 listings and 3 are in contract!---50%). Even Belvedere, with the lowest percentage in contract of all the cities and towns surveyed, has 6 of 20 listings in contract, or 30%. Buyers are scrambling to find properties that will work for them. Multiple offers are happening every day. If you have been waiting to sell your home, this may be the right time! Call your experienced local REALTOR and make an appointment to go over recent comparable sales in your neighborhood. You may be pleasantly surprised!
This month's blog is for sellers, potential sellers, and would-be sellers who are sitting on the sidelines waiting for the market to improve.
I just spent the last 2 and a half hours looking up, writing down, and digesting the November real estate statistics for Marin County. It seems to me like a great time to sell, so I can't understand where all the sellers are! Let me share with you some of the numbers I found:
Number of homes sold in November: 2012 2011 2010
Single Family 185 164 147
Condo 56 62 46
Inventory of homes for sale 11.30:
Single Family 421 846 1072
Condo 96 263 332
Months' Supply of Inventory:
Single Family 2.3 5.2 7.3
Condo 1.7 4.2 7.2
Ratio of Sales Price to List Price:
Single Family 99% 96.5% 95.2%
Condo 101.3% 95.7% 96.7%
New Listings in November:
Single Family 118 150 157
Condo 33 54 55
The Greenbrae housing market is sizzling right now, with only 12 current listings, and 9 of them in contract--- a red-hot 75%. Novato is not far behind, with 126 of 174 current listings in contract--- 72.4%! Larkspur (9 of 16, or 56.25%), San Rafael (95 of 170, or 55.88%), Fairfax (11 of only 20, or 55%), and Corte Madera (only 6 listings and 3 are in contract!---50%). Even Belvedere, with the lowest percentage in contract of all the cities and towns surveyed, has 6 of 20 listings in contract, or 30%. Buyers are scrambling to find properties that will work for them. Multiple offers are happening every day. If you have been waiting to sell your home, this may be the right time! Call your experienced local REALTOR and make an appointment to go over recent comparable sales in your neighborhood. You may be pleasantly surprised!
Tuesday, September 18, 2012
Marin County Real Estate 9.17.2012, Listing Drought Continues. The Anlyan Report
Hello Everyone,
The theory of yin and yang tells us that eventually everything changes into its opposite, and the Marin County real estate market is in the process of doing just that! The traditional late summer/early fall market rally has hit. Significantly more homes are being sold than there are new listings to replace them and our months' supply of inventory (MSI) continues its southward journey. Frustrated buyers compete for a shrinking inventory of desirable properties while many potential sellers seem unaware of the dramatic market turnaround of the last few months. For those who have been waiting, now may be the best time in the past few years to list your home for sale. Contact a local REALTOR who is knowledgeable about your neighborhood to get an opinion on the value of your home.
Inventory of Single Family Residences (SFR) for sale in the County was 544 at the end of August. This compared to 1003 in 2011, and 1242 in 2010. The current inventory represents a 2.3 MSI vs. 5.7 months in 2011 and 9.0 months in 2010. The numbers for condominiums are similar: Inventory on August 31 was 107 Condo units, or a 1.6 month supply. This compares to a 6.2 month supply, or 359 units, in August of 2011 and 379 units in August, 2010, representing a 10 month supply based on market conditions at that time.
New Listings are down, with only 189 new SFR listings and 58 new condo listings in August. In August of 2011, there were 239 SFR and73 condo listings, and during the same period in 2010, the numbers were 276 for SFR and 82 for condo's.
The number of homes sold for the month of August is up, with 236 SFR's sold during the period this year, compared to 175 in 2011 and 138 in 2010. For condo's, the numbers were: August, 2012- 65; August 2011-58; and August 2010-38. This represents an increase in the number of homes sold in August of 2012 over August of 2011 of about 29%!
Average sales price has not shown dramatic gains, but it is important to remember that it is a reflection not just of market value, but also of market mix. What this means is that different homes are selling this year than last year so we can't directly compare the prices. What we can look at, however, is the ratio of sales price to list price, which is now over 100% in both the SFR and Condo markets. This reflects an excess of demand over current supply, resulting in multiple-offer situations and sales prices in excess of listing prices. (Potential Sellers---see paragraph 1!)
A September 14 article from, DataQuick, a La Jolla, CA-based real estate information service stated:
"-The Bay Area posted its strongest home sales for the month of August in six years, the result of low mortgage interest rates, an improving economy and increasing demand in mid- to move-up market segments." The article went on to quote DataQuick's president, John Walsh: "Most economists agree that the housing market is off bottom. But there's a big gap between the market being ‘off bottom' and being normal, which it's not. The single biggest bottleneck is still the dysfunctional mortgage lending market. It'll be interesting to see how yesterday's announcement that the Fed is going to buy mortgage-backed securities plays out".
With continuing bargain interest rates, and low housing inventory, "interesting" is probably an understatement. More later. Until then, best wishes to all,
Fred
The theory of yin and yang tells us that eventually everything changes into its opposite, and the Marin County real estate market is in the process of doing just that! The traditional late summer/early fall market rally has hit. Significantly more homes are being sold than there are new listings to replace them and our months' supply of inventory (MSI) continues its southward journey. Frustrated buyers compete for a shrinking inventory of desirable properties while many potential sellers seem unaware of the dramatic market turnaround of the last few months. For those who have been waiting, now may be the best time in the past few years to list your home for sale. Contact a local REALTOR who is knowledgeable about your neighborhood to get an opinion on the value of your home.
Inventory of Single Family Residences (SFR) for sale in the County was 544 at the end of August. This compared to 1003 in 2011, and 1242 in 2010. The current inventory represents a 2.3 MSI vs. 5.7 months in 2011 and 9.0 months in 2010. The numbers for condominiums are similar: Inventory on August 31 was 107 Condo units, or a 1.6 month supply. This compares to a 6.2 month supply, or 359 units, in August of 2011 and 379 units in August, 2010, representing a 10 month supply based on market conditions at that time.
New Listings are down, with only 189 new SFR listings and 58 new condo listings in August. In August of 2011, there were 239 SFR and73 condo listings, and during the same period in 2010, the numbers were 276 for SFR and 82 for condo's.
The number of homes sold for the month of August is up, with 236 SFR's sold during the period this year, compared to 175 in 2011 and 138 in 2010. For condo's, the numbers were: August, 2012- 65; August 2011-58; and August 2010-38. This represents an increase in the number of homes sold in August of 2012 over August of 2011 of about 29%!
Average sales price has not shown dramatic gains, but it is important to remember that it is a reflection not just of market value, but also of market mix. What this means is that different homes are selling this year than last year so we can't directly compare the prices. What we can look at, however, is the ratio of sales price to list price, which is now over 100% in both the SFR and Condo markets. This reflects an excess of demand over current supply, resulting in multiple-offer situations and sales prices in excess of listing prices. (Potential Sellers---see paragraph 1!)
A September 14 article from, DataQuick, a La Jolla, CA-based real estate information service stated:
"-The Bay Area posted its strongest home sales for the month of August in six years, the result of low mortgage interest rates, an improving economy and increasing demand in mid- to move-up market segments." The article went on to quote DataQuick's president, John Walsh: "Most economists agree that the housing market is off bottom. But there's a big gap between the market being ‘off bottom' and being normal, which it's not. The single biggest bottleneck is still the dysfunctional mortgage lending market. It'll be interesting to see how yesterday's announcement that the Fed is going to buy mortgage-backed securities plays out".
With continuing bargain interest rates, and low housing inventory, "interesting" is probably an understatement. More later. Until then, best wishes to all,
Fred
Friday, August 17, 2012
The Anlyan Report. Marin County Real Estate 8.17.12
The Marin County real estate market bustles with frenzied activity as
buyers scramble for a limited supply of available homes. What's going
on here?
Many potential sellers still seem to be under the impression that it is not a good time to place their homes on the market, and are postponing their plans to relocate, downsize, or move up. It is true that prices are not what they were in 2006---but they are a far cry from the lows of 2009! Seller reluctance has resulted in the following statistics (believed accurate, but not guaranteed) as of July 31.
There were 223 single family residences (SFR) and 53 condominiums (Condo's) sold in July in Marin County. In 2011, it was 172, and 49, and in 2010, it was 166 and 41. Inventory of available homes in July was 563 SFR's and 105 Condo's. The previous year,the numbers were 1034 and 386, and in July of 2010, there were 1290 SFR's and 381 Condo's available for purchase. A client recently made an offer on a home that was newly-listed, went significantly over asking price, was one of 11 offers, and was not in the top half. So, Sellers may want to re-evaluate the quality of this market as it relates to their goals. Admittedly, prices are not what they were a few years ago, but the market is active, interest rates are at historical lows, and well-marketed, well-priced properties are selling quickly, and often for over asking price. The ratio of sale price to list price in Marin at the end of July was .989% for SFR's and 1.005% (meaning they actually went over asking price, on average) for Condo's. New listings continue to lag, with only 223 SFR's and 53 Condo's listed during the month of July, they barely kept up with the number of units sold. Months Supply of Inventory (MSI) in the County continues to drop, with a 2.5 MSI of SFR's and a 2.0 MSI of Condo's as of July 31. This compares to 6.0 and 7.9 in July of 2011, and 6.0 and 9.3 in July of 2010!
San Diego, California-based DataQuick, a real estate news service, in an article dated August 15, and captioned "Bay Area Home Sales and Prices Continue Upward Trend". Noted that home sales in the Bay Area rose on a year-over-year basis in July for the 13th continuous month. The article stated that the Bay Area market is "re-balancing slowly" from "low-end bargain chasing" to "increasing activity in the mid and move-up markets". The article went on to note that absentee buyers (mostly investors) purchased 22.6% of Bay Area homes in July, and that all-cash buyers accounted for 27.3% of Bay Area sales during the month, up 26% from a year ago. The article also mentioned that jumbo loans (over $417K) represented 38.5% of July's "purchase lending", the highest since December of 2007, when it was 38.6%.
The increase in jumbo loan availability and use is fueling the demand for mid-range and higher homes. Loan guidelines have eased, and mortgage money is available for qualified buyers. Strict appraisal standards are holding prices to more rational levels compared to the go-go days of a few years ago, but many homes still garner multiple offers and go significantly over asking price.
Buyers need not be discouraged. Following the advice of a good, persistent REALTOR, it is still entirely possible to find the home of your dreams. But sales happen fast, especially on attractive listings, so the home that comes on the market on Wednesday or Thursday may already be in contract before the open home on Sunday. It is a better idea to go see it now! Ask your agent about pre-emptive offers. And don't be afraid to put your best foot forward!
Many potential sellers still seem to be under the impression that it is not a good time to place their homes on the market, and are postponing their plans to relocate, downsize, or move up. It is true that prices are not what they were in 2006---but they are a far cry from the lows of 2009! Seller reluctance has resulted in the following statistics (believed accurate, but not guaranteed) as of July 31.
There were 223 single family residences (SFR) and 53 condominiums (Condo's) sold in July in Marin County. In 2011, it was 172, and 49, and in 2010, it was 166 and 41. Inventory of available homes in July was 563 SFR's and 105 Condo's. The previous year,the numbers were 1034 and 386, and in July of 2010, there were 1290 SFR's and 381 Condo's available for purchase. A client recently made an offer on a home that was newly-listed, went significantly over asking price, was one of 11 offers, and was not in the top half. So, Sellers may want to re-evaluate the quality of this market as it relates to their goals. Admittedly, prices are not what they were a few years ago, but the market is active, interest rates are at historical lows, and well-marketed, well-priced properties are selling quickly, and often for over asking price. The ratio of sale price to list price in Marin at the end of July was .989% for SFR's and 1.005% (meaning they actually went over asking price, on average) for Condo's. New listings continue to lag, with only 223 SFR's and 53 Condo's listed during the month of July, they barely kept up with the number of units sold. Months Supply of Inventory (MSI) in the County continues to drop, with a 2.5 MSI of SFR's and a 2.0 MSI of Condo's as of July 31. This compares to 6.0 and 7.9 in July of 2011, and 6.0 and 9.3 in July of 2010!
San Diego, California-based DataQuick, a real estate news service, in an article dated August 15, and captioned "Bay Area Home Sales and Prices Continue Upward Trend". Noted that home sales in the Bay Area rose on a year-over-year basis in July for the 13th continuous month. The article stated that the Bay Area market is "re-balancing slowly" from "low-end bargain chasing" to "increasing activity in the mid and move-up markets". The article went on to note that absentee buyers (mostly investors) purchased 22.6% of Bay Area homes in July, and that all-cash buyers accounted for 27.3% of Bay Area sales during the month, up 26% from a year ago. The article also mentioned that jumbo loans (over $417K) represented 38.5% of July's "purchase lending", the highest since December of 2007, when it was 38.6%.
The increase in jumbo loan availability and use is fueling the demand for mid-range and higher homes. Loan guidelines have eased, and mortgage money is available for qualified buyers. Strict appraisal standards are holding prices to more rational levels compared to the go-go days of a few years ago, but many homes still garner multiple offers and go significantly over asking price.
Buyers need not be discouraged. Following the advice of a good, persistent REALTOR, it is still entirely possible to find the home of your dreams. But sales happen fast, especially on attractive listings, so the home that comes on the market on Wednesday or Thursday may already be in contract before the open home on Sunday. It is a better idea to go see it now! Ask your agent about pre-emptive offers. And don't be afraid to put your best foot forward!
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