Marin County Market Report: August 2010
Market Report - August 2010
After a difficult 2009, Marin real estate sales throughout the first half of 2010 have been showing increasing signs of strength. Here are seven key indicators that make us optimistic about the market:
1. Transactions are up dramatically, increasing 21% through mid-August vs. same period last year. There have been 1,445 sales so far this year, vs. 1,190 last year for the same period.
2. REO’s and short sales as a percentage of overall sales are declining. They represent 19% of all sales so far this year. Although this number is historically very high for Marin, it is down dramatically from last year, when 24% of all sales were distressed properties.
3. Average sale price has increased 11%, from $834,123 to $925,026. Average sale price is a good indicator of the general direction of the market, and reflects that higher priced properties are beginning to sell more now.
4. Multi unit properties are selling again, now to all cash buyers. There were seven multi unit closings in Marin in the last 45 days. Most of them - and all of the big ones - were to all cash buyers. One of them was our listing, 11 Hillside, and the Seller’s rationale was pretty simple: he felt it was time to move money out of the stock market and into real estate, as prices have come down and his returns would be higher.
5. Average days on market is heading down, from 98 days on market in 2009, to 91 for properties year to date.
6. Luxury properties, above $2 Million, are moving again. Unit volume almost doubled in this segment this year, as 113 properties have sold, the highest being $14,000,000.
7. Price per square foot is up slightly, from $458 per foot to $471.
Increases are being seen in almost all towns, although the increases skew to more affordable markets. Fairfax sales are almost double what they were last year, as is Greenbrae. Novato is way up, as is Mill Valley. The only town showing a decrease in sales is Ross, but the number of transactions per year there is so low - 12 so far this year - that it is really a statistical anomaly.
Inventory continues to build. There are now 1,622 homes on the market for sale, and 24% of them are in contract. Technically, that’s a Buyers Market, and that level has held steady for the last few weeks. August is typically a slow sales month, with volume traditionally picking up again in September. We’ll let you know if that pattern holds in the next few weeks.
Source: Bareis MLS 8/15/2010
