We find ourselves in what is typically the slowest time of the year with the phones ringing more than usual. It’s a pretty even mix of buyers and sellers, which always helps to create a balanced and nicely flowing market.
Market activity in Marin County remains fairly strong. Good homes that are well priced are still moving quickly everywhere, albeit at a somewhat slower speed than past Summer and Fall.
As of earlier this month, inventory is average, with 662 homes available for sale in Marin. And 41%, or 277 of them, are already in contract. And the mid-level price range is the hottest. For homes from $750,000 to $1,500,000, 47% are in contract. Under $750,000, 41% are in contract. And for homes over $1,500,000, 26% are in contract. Lots of crazy high prices these days. The $4 to $6 million house is almost a norm.
The California Association of Realtors predicts the median home price to increase 5.2% next year in the state, less than this year. More homes will become available as Sellers realize rising prices make it possible and desirable to sell. Many have been waiting for a reason to get off the fence. More supply will slow down price increases.
We expect a similar trend in Marin. We expect continued appreciation, but not at the rates we have seen for the last 18 months. That pent up demand, some of it going all the way back to the bank crash of 2008, has tapered off. Leading economists predict only a slight rise in mortgage rates, to 4.5% for a 30 year fixed mortgage. Marin typically runs higher than state average (don’t we in everything?) so rates for the County could be higher.
Recent stock market flip flops, civil unrest and inter national concerns have made everyone a little more cautious. But tech in SF is booming. Demand for Marin from young couples — usually when expecting a baby or shortly after having one — will remain the steady migration it has long been. And it’s a one way migration, too. We have never known anyone to move back to the city. One you get to Marin, you know there is no better place to be.
Have an amazing 2015. Let us know if we can help.
Pat & Bob Ravasio
All stats from Bareis MLS. BROKER is Coldwell Banker, Larkspur. CalBRE#01394550. Find us on Facebook @ Bob & Pat Ravasio’s real estate page.