Marin Real Estate Update – Q1 2008

The Big Picture:

Contrary to the dire news from much of the rest of the country, prices for single family homes in nearly all towns in Marin are up in the first 3 months of 2008 – both from the same quarter a year ago and from the previous quarter.  Prices for condos on the other hand, with the exception of Sausalito, are down from the previous quarter, with San Rafael and Novato seeing the steepest declines. The number of homes that sold in the quarter just ended is down by 28% from the same quarter a year ago, and the length of time that homes stayed on the market has increased significantly.  With more homes on the market, and a slower rate of sale, the “inventory” of homes has stretched to 9 months. Homes priced under $750,000 are approaching a Balanced Market, while homes at the high end have shifted to a strong Buyers Market.

Prices:
The median price for a single family residence in Marin in Q1-2008 was $945,000, down 3% from a year ago, and down 4% from the previous quarter. The median price for a condo was $485,000, down 13% from a year ago and down 13% from the previous quarter. The Q4 median price by area and the percent change from the same period in 2007 and from the previous quarter (Q4-2007) is shown below:

Statistics from BAREIS MLS, deemed reliable, but not guaranteed.

Inventory and Time on Market

As of April 3, 2008, there were 1007 residential properties on the market in Marin, up from the same quarter last year when there were only 761 homes on the market, and up from646 homes in the prior quarter. It has been taking longer to sell homes, with a median number of days on market of 78, compared with 54 days last year at this time, and 53 days in the prior quarter. With more homes on the market, and fewer selling, the time it would take to sell the current “inventory” has risen from over 5 months, to 9 months.

Buyers or Sellers Market?
It’s generally considered a Buyers Market when less than 25% of listings are in escrow, a Balanced Market when 25-40% are in escrow, and a Sellers Market when more than 40% are in escrow.  By this measure,

Ø      It remains a Buyer’s Market for homes priced less than $750,000 (24% are in escrow).

Ø      It remains a Buyer’s Market for homes priced between $750,000 - $1,750,000 (20% are in escrow).

Ø      And it has changed from a Balanced Market to a Buyer’s Market for homes priced more than $1,750,000 (only 18% are in escrow).

For more information, visit our web site at www.MarinRealtyExperts.com.
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