Marin Real Estate Update – Q2 2009

The Big Picture:

There have been some dramatic changes in the Marin market within the past 3 months compared with the previous 3-month period. There has been a 79% increase in the number of homes sold; median prices have risen by 9% for single family homes, and prices of condos have surged by 37%. While prices are still well below where they were year ago, this represents a significant shift in the market. Sales for homes priced under $750,000 have seen the most activity, comprising 56% of all sales, turning this segment from a Balanced Market to a Seller’s Market, which we haven’t seen in any segment for many quarters.  Balance has also been restored to the ratio of condos to single family homes, with condo sales representing a more traditional 28% of all sales. The number of distressed properties (short sales and foreclosures) listed on the MLS has dropped to 120, from 163, which is helping to stabilize prices. Overall, this is a much improved picture from the first quarter, as buyers seem to be coming off the sidelines and getting back into the game.

Prices:

The median price for a single family residence in Marin in Q2-2009 was $775,000, down 29% from the same quarter a year ago but up 9% from the previous quarter. The median price for a condo was $357,000, down 24% from the same quarter a year ago but up 37% from the previous quarter. A more accurate reading is that for each area, within which home values are more comparable. The Q2 median price by area and the percent change from the same period in 2008 and from the previous quarter (Q1-2009) is shown below:

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

* Less than 25 homes have sold this quarter for this area, so these statistics are less reliable than those for other markets.

Inventory and Time on Market

As of July 6, 2009, there were 1,080 residential properties on the market in Marin, down from the same quarter last year when there were 1,160 homes on the market. The median time it takes to sell has dropped from 80 to 65 days on market. With 563 homes having sold this quarter, the time it would take to sell the current “inventory” has dropped to 6 months from the previous 10 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 has changed from a Balanced Market to a Seller’s Market for homes priced less than $750,000 (45% 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 remains a Buyer’s Market for homes priced more than $1,750,000 (only 8% are in escrow).

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