Marin County Real Estate Market Report
Lack of inventory – homes to sell – continued to be an issue last month, with the number of new listings down almost 60% compared to the same time last year. According to this article, this is not unique to Marin – new listings are down 40-50% throughout the San Francisco Bay Area. Pricing continues to march upward, with median home prices up 12% to $1.55mm compared to the same time last year.
Sellers on the Sidelines – Why?
So what is driving this? Sellers are sitting on the sidelines but why? Rising interest rates or the recent stock market volatility doesn’t explain this. It is the number one topic agents discuss when we get together.
One theory is that the market is “locked up” with sellers unable to find a place to buy, so they defer selling their homes. Since the housing issue is national, even my clients who are moving out of the Bay Area are stuck in the same cycle. I am not sure how this ends but I do believe that more inventory on the market will then create even more inventory if this cycle reverses.
What are your thoughts? Please add them in the comments section at the bottom of this post.
Have We Reached the Top of the Market?
We have been asking this question for several years now, as both the housing and stock markets continue to move upwards. However at the national level we are seeing some signs that the market may be easing. According to the latest quarterly report from the National Association of Realtors®, out of 183 measured markets, 67% of the metros reached double-digit price appreciation compared to 78% in the prior quarter.
If the conventional wisdom evolves to this being the top of the market, we may see many sellers on the sidelines decide to cash in. Time will tell.
Coming Soon – Stunning Eichler in Lucas Valley
I will be launching a stunning Eichler home in Lucas Valley in the coming days. It has been completely remodeled with many upgrades and features 4 bedrooms, 2 bathrooms and a beautiful back garden with stunning views of the Lucas Valley hills. Please call or text me for details.
How Can I Help?
These market 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.
Check Out My 2022 Sizzle Reel!
From the Golden Gate Sotheby’s Market Report…
LOW INVENTORY CONSTRAINS SALES ACTIVITY
The low level of inventory combined with higher prices continued to constrain sales activity. The number of homes sold in January fell to the lowest level since the first month of the pandemic. Back in early 2020, the uncertainty surrounding the burgeoning pandemic and restrictions on open houses caused the number of closings to fall drastically. However, in 2022 the primary reason for the drop in sales is a lack of inventory and the surge in prices. For some prospective buyers, the recent price increases combined with the uptick in mortgage rates have pushed households back to the sidelines. Buyer fatigue is returning to the market as some potential buyers have lost out to higher bidders multiple times. In January, sales volume decreased to roughly 2,700 homes in the SF Bay Area, a nearly 20% decrease from January 2021 and 37% lower than one month ago.
The SF Bay Area housing market should remain strong through the remainder of the year even as potential headwinds increase. With inflation rising and the Federal Reserve all but certain to raise interest rates this year, the average mortgage rate will increase as well, leading to higher purchase costs. The surge in house prices in the last few years has already moved ownership beyond the income means of some households. Housing affordability will remain a significant issue throughout the SF Bay Area in the coming years. While stock markets have been volatile to begin the year, investment income as well as IPOs should continue to provide many households with additional capital to purchase homes. With travel restrictions steadily lifted across the globe, a return of international buyers may add to buyer demand in the near term. The scarcity of housing is unlikely to change in the coming year and limited numbers of existing owners are likely to list their homes for sale. With little prospect of a substantial increase in for sale inventory, prospective buyers will continue to compete for a small pool of homes and pricing should trend higher, potentially leading to new record levels.
What My Clients Are Saying…
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Marin Real Estate Market Stats
Marin County Real Estate Market Report Charts
(click any slide to enlarge & launch slideshow)
“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.
This handy calculator is a great place to start. Then give me a call at 415-847-5584 and let’s discuss.
Would you like to see this data for your town only?
I am also excited to announce that my website now has new real estate market reports by town with more coming soon. Please check these out:
These are all accessible from the “Market Reports” menu item here on my website at any time.