Marin County Housing Market Report: Sales Strengthen In January

As I predicted a few weeks ago (I hate it when writers do that, I promise never to do it again), sales in Marin County strengthened in January.

In fact, in the under $1MM segment, we are very much in a balanced market situation.

Maybe it was the expceptionally dry weather. Maybe it was that buyers figured out interest rates are historically low. Maybe it was the change to the New Year. But whatever it was, buyers were active again.

Even though inventory rose, the percentage of homes in contract increased to 28% as of 1/31/07, up from 24% just two weeks prior.

In the under $1MM segment, which is the largest part of the market, the percent in contract is 32%. That’s a very balanced market.

Inventory rose from 721 to 827 homes available for sale. So that means that people are buying homes faster than they are coming on for sale.

Also of note, full year data is out for 2006. Average sale price in Marin County rose slightly, from $1,078,819 to $1,091,526. Not a huge increase, but it is the 39th time in the last 41 years average sale price for a home increased on an annual basis in Marin County. It’s also an interesting development, despite all the predictions of a housing bubble bursting.

If you’re thinking about whether or not to buy a home, ask yourself: how many investments have that kind of track record? Not many, I’m sure, but if you know of one, please let me know too! (Don’t forget, they need to double in value every ten years also).

We consider it a Buyers Market when percent in contract is less than 25%, balanced when it is 25% -40%, and a Seller’s Market when it is over 40%. Here are the numbers:

January 31, 2007

Total Homes Available:                     827
Total Homes in Contract:                 228
Percent in Contract:                        28%
Percent in Contract, under $1MM:     32%
Percent in Contract, $1MM-$2MM:     25%
Percent in Contract, $2MM-$3MM:     18%

As always, email me if you’d like a full report.

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