Marin Market Update: Buyers Take Control
We’re going to start trying to review pertinent market data every two weeks. Rather than devolve into “analysis paralysis”, we focus on a couple of key numbers. Here they are, as of Oct. 1, 2006.
Total homes on market: Â Â Â Â Â Â Â Â 1405
Percentage in contract: Â Â Â Â Â Â Â Â Â 21%
Marin, $1MM-$2MM, in contract: 22%
Marin, $2MM-$3MM, in contract: 15%
We consider it a “Buyer’s Market” when percent in contract falls below 25%. We’ve been below 25% since July 6, 2006, and the number was holding steady until the last couple of weeks, when it started to come down.
For perspective, at the same time one year ago, the percent in contract was 34%.
The cause, interestingly, is a slight drop in buyer activity, but more importantly, there is an increase in inventory. Inventory typically falls at this time of year, and instead, it is increasing, as more people put homes up for sale.
September data hasn’t been posted yet, but anecdotally, pricing remains strong. Some people focus on the number of price reductions in the market; that’s more a barometer of seller’s expectations coming into line with marketplace conditions than an actual decline in prices.
So if you’re buying, should you wait so you can get a better deal?
I’m sticking to what I’ve said before.
1. Interest rates are good. Heck, by historical standards, they’re great. 6.25% for a 30 year fixed? Where do I sign up?
2. This is a tough place to buy a home. If you find one that fits your criteria, take it. I saw two great houses in Corte Madera last week - great shape, priced well, and called my hot buyers about them. Both went into escrow five days later. Don’t fool yourself into thinking that everything is just sitting. It isn’t.
This is a rare time in Marin County when buyers can actually choose among several homes that fit their needs, write an offer when they don’t have a gun at their head, negotiate in good faith to get appropriate repairs made, and get a loan that they’ll be happy about years from now.
Take advantage of it.
