BAY AREA MARKET UPDATE – “SOMEWHAT OF A PERFECT STORM…”
DataQuick, a San Diego based real estate information service reported this month that the median price paid for a Bay Area home moved above the half-million-dollar mark for the first time in almost five years, pushed up by pent-up demand, an improving economy, investor activity, low mortgage interest rates and constrained supply, as well as a continued decline in distressed sales.
The median price paid in the nine-county Bay Area rose to $510,000 in April. That was up 17.0 percent from $436,000 in March, and up a whopping 30.8 percent from $390,000 in April a year ago.
The 17.0 percent month-to-month increase is the highest in DataQuick’s Bay Area statistics, which go back to 1988.
“There’s somewhat of a perfect storm here, statistically speaking. The pent-up demand, the economy, interest rates, investor buying. Everything is in alignment right now, but that won’t always be the case…” said John Walsh, DataQuick president.
MARIN COUNTY MARKET UPDATE
Just like the Bay Area real estate market, our Marin County market continued to pick up steam in April, with the average sales price of a single family recovering to close to peak of the market values. Despite the much needed increase in inventory, demand continues to exceed supply as many buyers are anxious to take advantage of our Marin County “perfect storm.” Desirable properties continue to receive multiple offers and to sell for more than the list price.
SINGLE FAMILY HOMES MARKET ACTIVITY
The number of listed homes increased dramatically by the end of April to a total of 400 actively listed homes not in contract, up over 50% from the previous month. This is partly due to seasonality–spring is typically the time when the majority of sellers put their home up for sale–, however, the change is mostly attributable to the exceptionally low inventory at the start of the year since the current inventory is still 20% below last year’s in April.
The Average Sale Price increased to $1,152,406 which is only 6% lower than the Peak in 2007. This is significantly better than it has been over the last years through the recession. However, the value as represented by Price Per Square Foot is off by 17% from Peak, up from a low of over 30%. Sellers are waiting out the market for a full recovery as indicated by the 61% lower level of Inventory from 2007.
Single Family Homes in Contract
Greenbrae continues to be one of the hottest markets closely followed by Corte Madera. Those locations represent an excellent value with mid-range pricing, excellent weather and outstanding schools. Novato, Fairfax and San Rafael offer entry level pricing and investment opportunities which is reflected in the large number of homes in contract. Belvedere had only 5% of homes in contract due to the high price points and unique signature properties which are attainable by a relatively small buyer pool.
Market Activity by Price Point
The greatest amount of activity continues to be under $1 million, followed by the $1-$2 million range. The market under $2 million is seeing a flurry of activity and multiple offers particularly on homes that offer flat yards, finished interiors, and are close to town. The only sale over $4 million was a home in Tiburon which sold at $4,775,000 and Decker Bullock Sotheby’s International Realty represented the Buyers. Note that due to the lack of sales over $5 million, the Month’s Supply of Inventory based on closed transactions cannot be calculated.
Single Family Home Sales by Area
San Rafael had 59 sales, followed by Novato and Mill Valley, which are sizeable markets. San Anselmo and Corte Madera had a significant number of sales for the relative size of their markets. The fewest sales were in the Beach Cities of Stinson, Bolinas and Muir Beach, and Belvedere. Belvedere had the highest minimum sale price at $2,525,000 followed by Tiburon at $1,183,000.
If you are thinking of selling your home, feel free to contact me to discuss your particular situation. I can give you an idea of the current value of your home; you may be pleasantly surprised! If you are thinking of buying, let’s sit down and talk about your needs and your goals and what the best strategy will be to reach them.
I look forward to assisting you with your real estate needs in 2013!
Unless otherwise indicated, all reports and statistics presented in this report are based on data supplied by BAREIS MLS. Neither the author of this report, the Marin Association of Realtors nor its MLS guarantees or is in anyway responsible for this data’s accuracy.
About the author: The above Real Estate information on Marin County Real Estate was provided by Sylvie Zolezzi. I can be reached via email at Sylvie@YourPieceOfMarin.com or by phone/text at 415.505.4789. I am an award winning Realtor specializing in luxury residential real estate in beautiful Marin County, just north of the Golden Gate Bridge.
I specialize in Luxury Homes in the following towns in Marin County: Sausalito, Tiburon, Belvedere, Mill Valley, Corte Madera, Larkspur, Greenbrae, Kentfield, Ross, San Anselmo, San Rafael, Fairfax, and Novato.