Summer is here and we saw a subtle change in July after 12+ months of increasing prices and decreasing supply. The rate of increase in July for Marin home prices and the rate of decrease for Marin home sales began to slow versus prior months. In July we saw the median price sold increase 19% vs. July 2020 while the months of supply were flat to last year at this time. In the bay area as a whole, Home sales slowed in all counties with the exception of Solano County, where sales increased modestly by 3%. The sharpest declines in monthly sales were in Marin, Napa and San Francisco counties, where sales slowed by more than 20%.
I had predicted “vaccination vacation” effect a couple of months ago – referring to my thought that vaccinated buyers and sellers would hit the roads and skies and begin traveling. And travel they did – while I have only been on one flight in the last year, many of my friends are posting photos from beautiful beaches in Hawaii and mountains in Colorado. It remains to be seen if we are back in a more traditional cycle with home sales slowing in July and August and picking back up again after Labor Day.
I have a charming 3 bed/3.5 bath walk-to-town Larkspur home coming on the market in late August/early September. I also have a stunning 5 bed/4.5 bath 5200 sq ft home coming on around the same time. Stay tuned for more details.
How Can I Help?
These reports are a great place to start, but let’s continue the conversation. I am always happy to discuss the market and the best way to approach buying or selling a home in Marin County or the greater Bay Area. Call or text me anytime at 415-847-5584.
Despite the lifting of most business restrictions in July, the increase in the rate of COVID-19 infections hampered a greater economic improvement in the SF Bay Area even as the housing market remained strong. Many companies delayed plans for workers to return to the office in late July and August, while some consumers have curtailed activities.
The regional unemployment rate improved slightly to 5.8% in June, the latest month available, on par with the long-term average of the last twenty years. Through the first half of the year, 183,000 jobs were created, or in some cases workers were rehired, in the SF Bay Area. The availability of qualified workers remains an impediment to greater hiring volume, with many workers in a range of industries unwilling or unable to work as a result of COVID-19 concerns or lack of access to childcare.
With a resurgence of infections, employees able to work remotely may continue to do so, particularly in downtown San Francisco. The ability for a larger share of the regional population to work remotely for a longer period should continue to support buyer demand for larger homes in suburban neighborhoods.
While the regional economy continued to battle headwinds to the recovery, the housing market remained strong even as pricing broke records and some buyers have been priced out of the market. Following the record-setting sales pace in June, the number of closed sales decreased in July to 5,974 homes. This was a decrease of roughly 8% from last month, yet was the third-highest monthly total in the last five years, underscoring the strong demand for homes.
Additionally, closed sales were 20% higher than July of 2018 and 2019. Home sales slowed in all counties with the exception of Solano County, where sales increased modestly by 3%. The sharpest declines in monthly sales were in Marin, Napa and San Francisco counties, where sales slowed by more than 20%. Sales volume remained hampered by limited inventory in many neighborhoods as well as few options for starter home buyers. In some of the most competitive neighborhoods, a measure of buyer fatigue is entering the market as some potential buyers grow weary of getting outbid with each offer.
DIFFERENT SEGMENTS, DIFFERENT STORIES
While closed sales slowed throughout all price ranges, the greatest declines were in the upper price segments. The number of sales of homes priced less than $750,000 fell by only 1.4%, a minor amount. Conversely, sales of homes priced between $2.5 and $3.5 million fell by 17% from the previous month and sales of homes greater than $5 million declined by 23%. The $3.5 to $5 million price range slowed the most, with 29% fewer sales in July. Within the higher-priced home segments, buyers are faced with a limited number of options in many neighborhoods. A growing number of high-income households are looking to exit rather than relocate within the SF Bay Area.
“For Sale” vs. Sold Home Prices vs. Median Home Prices
Marin Home Prices List Price vs. Sold
Marin County Months of Inventory Based on Closed Sales
Average Price Per Square Foot
Marin County Number of Homes on the Market
I hope you have found my Marin County Real Estate Market Report informative. Please feel free to add your comments, questions or suggestions in the comments section below. If I may be of any assistance in helping you attain your real estate goals, please call or text me at 415-847-5584 and I will be in touch right away.