The Mill Valley, CA. real estate market fulfilled low expectations in August 2009 with 22 sales — same as in July 2009. It has become apparent over the past several months that asking prices have largely halted their downward spiral. As is evident in the graph below, which tracks the median price per square foot (down from $740 to $612), in Mid-June prices flattened out in Mill Valley and have more or less remained stable. It will be interesting to see whether this flattening out carries over into the sales prices of homes trading this Fall and Winter.
The Mill Valley, CA. real estate market fulfilled low expectations in August 2009 with 22 sales — same as in July 2009. It has become apparent over the past several months that asking prices have largely halted their downward spiral. As is evident in the graph below, which tracks the median price per square foot (down from $740 to $612), in Mid-June prices flattened out in Mill Valley and have more or less remained stable. It will be interesting to see whether this flattening out carries over into the sales prices of homes trading this Fall and Winter.
Based on last month’s sales total of 22, we currently have an overall inventory of homes sufficient to last a bit more than 5.5 months (virtually the same as August 2009) — this is called the absorption rate.
San Rafael, CA’s real estate market is increasingly fueled by foreclosures and short sales. The entry level price band (under $600K) remains extremely hot (84% of such homes are currently in escrow) and the $600K to $800K price band has seen steady activity with 35% of homes in escrow (same as last month). Increased affordability, low interest rates (rates are down from the time of last month’s report), an increased presence of FHA loans, and a shifting mindset by both buyers and sellers, are impacting these price points in a positive manner. Additionally, the $8K tax credit for first time home buyers is likely helping pull some buyers into the fray, despite the income limitations placed on this credit. It will be interesting to see if the government expands the credit to include ALL buyers and increases the credit amount to $15,000 — that would make a big difference for a lot of people. Overall, the number of homes on the market fell to 142 homes (from 159 last month). [Click HERE for the rest of the article, courtesy of www.Sanafael101.com].
I have written in past months about the high level of competition in Novato, California’s entry level real estate market. This trend continues into Q3 2009. In August 2009, 38 Novato homes sold. This is down from 47 sales in July and the same as in June. Many of these sold properties were bargain basement homes that were in some of distress. But, the inventory continues its rapid absorption as pent up demand, historically low interest rates, the First Time Homebuyer Credit, and increased affordability carry the day. Continuing on a trend noted last month, the average sales price of Novato homes rose. In August 2009, the average price for a Novato home was $ 713,440. That is up from $632,078 in July and from $622,000 in June. While this large bump may be anomolous, the fact it follows a bump last month may prove significant. Certainly, the psychological impact on buyers waiting for bottom to hit may prove significant. [Click HERE for the rest of the article, courtesy of www.Novato101.com].
I generally avoid posting articles from other publications, but a recent Associated Press article carried by the San Francisco Chronicle seemed particularly clear and to the point. In sum, there is a "New Normal" in real estate locally (I work in Marin County, California where prices for single family homes are relatively high compared with the rest of the nation) and nationally. This New Normal can be characterized as world in which "real" buyers have significantly increased power due to a number of factors. To read the full story, please click here.
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Marin County, Ca. sits just north of San Francisco and features some of the best cities in the Bay Area. Call on me with any of your real estate needs. It is my pleasure to be of service.
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