Why Buy A Condominium in Marin County?
Condominiums continue to be a strong market in Marin County, just as strong as houses. In April, average sale price for a condo in Marin increased 19% from the prior year, according to Data Quick.
It’s cooling a bit now, but sales are still relatively strong. This will be a series of posts about condominiums, and why they make sense in Marin County. We’ve closed five condo sales already this year, and have one listed right now.
There are a couple of market fundamentals driving the demand, we believe. Importantly, these are all long term trends, not short term, and will continue to drive demand.
1. Price. It seems obvious, but is worth pointing out. You can get into a condo for less than $350,000 in Novato, and the low $400s in Mill Valley. That’s well below what you’ll pay for a house, yet you get all the advantages of home ownership: equity build, mortgage tax deductions, control over your own space, and a leveraged investment.
2. The “Silver Tsunami.” According to a recent story in the Marin IJ, one in three Marin County residents will be 65 or older by 2030. As age increases, so does the desire to make things easier, and downsize. Condos fit the bill perfectly. Less space, no maintenance, and a built in community all make condos desirable as we age. And thanks to Proposition 60, there is a HUGE tax incentive to downsize for people in California (email us for more information on Prop 60).
3. Boomerang Generation. Newsweek just ran a story with a frightening statistic: over half of all college graduates are returning to their childhood bedrooms and staying with their parents. And more than 1 million American homes housed young adults in 2006, up 28% from 2004. If you’ve met my oldest daughter, you know why this scares me - don’t get me wrong, she’s fantastic, but the time has come for a little separation!
More parents are looking to condos as an investment and as a place for their older children to live while they get started in the adult world. We’re working with one client doing that right now.
There you have it. Three basic drivers of condo demand in Marin County, none of which show any signs of abating.
Oh, and new condo developments in Marin County? There’s a few coming up - Larkspur Landing will come on next year - but in the scheme of things, probably a drop in the bucket, and a high price point. With supply static, and demand strong, prices will remain stable.
