While there were plenty of home sales in Marin County, inventory is still very low as we are approaching a record-tying median home price for May. The County is seeing multiple offers and prices selling over asking in the $100,000's. The buyers in our market, having lost out on several multiple offers, are getting more aggressive and ready to outbid any multiple offer situation. But, not all markets are hot, nor are homes flying off the shelves. Some price points (see below) are showing signs of fatigue, and not moving as quickly, but we still categorize the market as a "Seller's market." If you are looking to buy we are seeing sellers respond favorably to quick closings and fewer contingencies.
National mortgage rates are still very low -- the lowest rates we have seen in nearly seven months -- though today it was announced that the Fed has raised interest rates, so we'll be watching closely in the next few months to see how this affects home sales. More and more first-time home buyers are jumping into the market. Now is the time to speak with your lender and get pre-approved!
The median home sale price in Marin for the month of May was $1,290,000, with a total of 225 single family homes sold.
The Marin market is still going strong as we enter into the summer months --new listings are still coming on the market, but some agents and buyers are taking a breather, which is good news for the rest of us! Take a trip to Tahoe if you must, but the market is not going on vacation this year and we think motivated buyers and sellers will be best served if they stay in the game.
If you are listing your home think twice about listing too high, for if you do you may see your property sit on the market longer than you like, and ultimately may fetch an even lower price than its market value. We are still seeing some price reductions. And, motivation is often the culprit of higher prices and properties sitting on the market. If Sellers have no incentive to sell (other than fetching the highest possible price they can get for their home) they may not be realistic with their pricing. On the flip side, if a seller is motivated to move and must do so for financial or other reasons, pricing the house to sell will definitely work to their advantage. Consumers and investors always want value! And, sometimes a perceived value can drive prices higher than perhaps they should go -- hence the continuing price escalation in the Bay Area.
Single Family Homes Sold in May 2017 vs May 2016
Over the last year, we saw a 3.2% price increase, with the number of single family homes increasing from 221 to 225; not as large of an increase as we've been seeing, but still an accurate reflection of a productive month year over year. The luxury areas of Ross, Tiburon, and Sausalito each saw positive price growth in May; 3.3%, 22%, and 27% increases respectively. The areas of Mill Valley, Novato, and San Rafael are the usual top producing towns in Marin, each seeing over 30 homes sold in both May 2016 and May 2017.
As we mentioned, the low inventory in Marin has many properties moving quickly and over the asking price. This may be a reflection of the market seeing pent up demands this spring season after the elections last fall.
Trends of Homes Sold in Marin in Varying Price Ranges in May
With over 60 homes sold in the below $1 million and $1-$1.5 million ranges, it's safe to say we are still seeing a healthy influx of homes priced reasonably for buyers in Marin. The $1-$2 million range has an average of 30 days on market, which is consistent with last year's data as well. The luxury sector of $5 million plus homes are seeing well over 100 average days on market, possibly reflective of longer escrows or buyers taking longer to make the decision to buy.
Marin Design Awards
We had a fantastic turnout for our inaugural Marin Design Awards with over 300 people in attendance from the Bay Area design community. Through the community’s contributions we were able to make a substantial donation to Home for a Home. Home for a Home partners with real estate agents who donate a percentage of their commission to build a home for a family in critical need in Guatemala.
The Recipients of the 2017 Marin Design Awards were:
Architecture Award: Ron Sutton & Elizabeth Suzuki, Sutton Suzuki
Interior Design Award: Allison Bloom, Dehn Bloom
Landscape Design: Ive Haugeland, Shades of Green
Home Decor Award: Robin Petravic and Catherine Bailey, Heath Ceramics
Floral Design: Jodi Shaw, Flourish Succulents
Fashion Award (clothing design): Stephen Gordon, Guideboat
Fashion Award (accessory design): Christina Palomo Nelson & Megan Papay, Freda Salvador
The Costa Group serves buyers, sellers and investors in Marin County, Wine Country and san Francisco.