2013: A Rock & Roll Year in Real Estate
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2013 has been a very busy year in Marin Real Estate.
Marin cities homes' rose on average 16% (!) for an overall county average price of:
(SFR, YTD, YOY).
In addtion, the number of homes that sold rose 6% to 2268 (from 2133 homes the year before).
(YTD and YOY)
It started out with low inventory and plenty of buyers.
By March it was evident that we were in some sort of super accelerated bubble. Prices were rising a full 1 to 3% monthly. While we Realtors were thrilled, we were also nervous; If the prices continued to rise, would there be another market correction in a few years?
While this was an exciting time for Realtors and homeowners, it was very frustrating for our buyers as properties were bid up sometimes as much as $100,000 by (often times) all cash buyers.
Investors and flippers returned to the market place and were causing havoc with families seeking homes to live in.
Pent up demand, historically low interest rates and plentiful Bay Area jobs were fueling our local market.
By Mid May, interest rates began to rise. Within a month, rates were up a full point- almost at 5%.
The market remained hot in Southern Marin.
However, there were fewer multi offer situations in which buyers were bidding $100,000 plus over the asking proice.
By mid July, the bulk of the pent up demand had either been satisfied or buyers became weary of jostling with one another for the same few properties.
North Marin witnessed a formidable slow down during the summer months. I was able to get my buyers into an Atrium Eichler in Upper Lucas Valley with a significant decrease over the initial listing price. ($1,125,000 reduced to $1,050,000).
However, activity throughout out Marin began to pick up in mid September.
Then, the news about the impending Debt ceiling debate hit the wires. Once again, buyers became circumspect.
The Current Real Estate Scene:
Most Buyers have not realized that there are deals out there that most likely will not be there next Spring season. (Economic forecasters and anecdotal stories indicate that next Spring will be busy again; albeit not as insane as this past Spring.)
The momentum has again, swung back to the buyer.
Rates are in the mid four percent range (see below) for most thirty year loan products and inventory remains low.
However, homes are now sitting on the market for up to and over 45 days. The median home price today of $910,000 is down from $945,000 in May of this year.
Only 40% of homes are selling in under 30 days compared with 51% of homes in May.
Those homes that do sell in under 30 days are only averaging 2.6% over list price compared with the month of May in which homes that sold in under thirty days were selling for 5% over the list!
Homes that sell in under 60 days currently account for 70% of the market place compared with 84% of the market place in May.
Further, there has been a significant reduction in multiple offers.
Check back often for market updates or call me for a personal market evaluation.
**Stats mashed by Yours Truly courtesy of BAREIS.
i look forward to hearing from you,