August is traditionally a sleepy month in the Marin County real estate world, but we continued to see pricing increase while supply declined versus the same time last year. The median price increased 10% to $1,650,000 while the number of homes on the market (200) was down 18% versus August 2020. September promises to be a busy month with a very active market as I write this.
What’s Happening In My World
I have just launched 104 Hawthorne Avenue in Larkspur and the response so far has been great. It is a vintage charmer with 3 bedrooms, 3.5 bathrooms and two bonus rooms offering walk-to-town living and huge upside potential. Originally built in 1908, this beautiful home features many upgrades through-out with approximately 2,160 square feet plus an additional 1000+ square foot basement with 8-foot ceilings. Exclusively offered for $1,995,000.
Also coming later this month is a beautiful 4 BR / 2 BA single-level home in the San Marin area of Novato.
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.
The housing market continued to outperform the broader economy in the SF Bay Area as the spreading Delta variant dampened consumer and business optimism. A growing number of corporate entities delayed reopening offices in the region and extended business travel restrictions. With remote working options extended for many SF Bay Area workers, the heightened demand for houses with extra rooms for home offices as well as access to outdoor space should persist into next year.
SALES DIP BUT LOW INVENTORY AFFECTS PENT-UP DEMAND
Closed sales decreased for the second-consecutive month from the June peak. In August, 5,828 homes sold throughout the region, 2.4% lower than July. While the modest slowdown in sales tallies does not indicate a drop-off in buyer demand, record-high pricing in many cities continued to weigh on some potential buyers. The increasing cost of ownership and size of down payments deterred some first-time homebuyers, adding to the pent-up demand for homes.
Additionally, lack of suitable inventory curtailed potential trade-up households. Sales activity in the most affordable segments increased in August, bucking the overall trend of slowing transactions and highlighting continued elevated demand for affordable single family homes in the region. Sales of homes priced less than $1.25 million increased by 2.5% in August. Listed homes in this price range also sold quickly, spending less than 24 days on the market on average. Within this price tier, counties with the strongest rebound in August included Marin, Napa and Sonoma.
Some amount of buyer fatigue may be growing in the mid-priced tiers, with buyers facing highly competitive bidding situations in most neighborhoods. Many listings received multiple offers soon after coming to market and the average days on market decreased in the mid-priced segment. The number of sales closed fell by 6% in the $1.25 to $2.5 million range, while sales dropped by 11% in the $2.5 to 3.5 million range.
The volatile economy and rising rate of infections will continue to create uncertainty in the SF Bay Area even as the housing market closes out the remainder of the year at an elevated pace. Thus far during the pandemic, housing demand has not been dampened and there is little reason to believe that this will change in the coming months. The low mortgage rate environment is likely to persist, which will help new entrants to the most expensive housing market in the country.
While affordability concerns will remain throughout the region, elevated demand for quality single family homes will drive the housing market into 2022.
“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.