Year End Market Report : Marin County Real Estate

Year end data is in, and we wanted to quickly review the ups and downs of the year. Because while it was challenging, and in some ways the worst of times, it was also rewarding, bodes well for the future, and was in many ways the best of times!

Here’s the news you’ll be seeing on the front page of the newspaper: average sale price for the year fell to $853,390, a 20% decrease from 2008. That is the largest decline in average sales price in the 43 years of data we have available. And days on market increased, from 85 days in 2008 to 101 in 2009.

So here’s what you won’t read in the newspaper…the seeds of the housing recovery have already been planted, and many people are enjoying the benefits.

1.More people were able to buy their first home last year, and get a foothold in one of the toughest housing markets in the country. The combination of falling prices, low interest rates, and the first time homebuyers tax credit brought first time buyers out in droves.

We are proud to say that our team put NINE first time Marin County home buyers into houses in 2009!

2. The buyers of today are more qualified than the ones doing it five years ago. They’re buying homes the old fashioned way - with healthy down payments, and qualifying for loans at very high standards, with good credit scores and solid income. These are not people who are going to fold at the first signs of a downturn.

3.Despite where we were in January of 2009, when many were questioning the ability of the American financial system to survive, the number of transactions in Marin County in 2009 actually rose vs. 2008. We are still very low by historical standards, at 2,156, but that’s up 4% from last year.

And current market conditions continue to bode well. Right now 36% of available homes are in contract. That is the highest percentage in several years, at a time when the numbers are typically low.

4.If you find a good house under $750,000, move quickly, because over 50% of the ones available have a contract on them! We expect this trend to stay very strong because anyone qualifying for the first time homebuyers tax credit must be in escrow by May 1. If interest rates stay low, than anyone who can buy will be looking very, very hard at this price point.

5. Interest rates are still great. Conventional loans are still available at 4.75%. Even multi-unit loans are still available through FHA at the 5.5% range. It’s almost like Eisenhower was still President and everyone was still driving a Plymouth!

We’ve gone through a difficult correction. But we’re still a huge fan of Marin County real estate. It is still one of the best places to live in the world, with great communities, wonderful schools, unparalleled opportunities for recreation and a benevolent climate. Housing supply is pretty much fixed, so long term, this is still a great place to buy a home!

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