Marin Residential Market Update [sponsored]

Financial market volatility during the first quarter of 2016 brought interest rates down to the benefit of homeowners and buyers, but it also raised apprehension levels and cooled the market slightly. While apprehension subsided in recent weeks, it’s appropriate to review longer term trends with the buying season upon us.

Quarterly market trends over the past three years show a slight movement from very seller favorable market conditions toward more balance. The available home supply, average selling time and the sold price as a percentage of asking price all moved in the direction of buyers. The median sale price has been essentially flat after reaching $1.15 million for single family homes and $575,000 for condominiums during the second quarter of 2015.

Inventory conditions remain very tight at 1.35 months overall, but the first quarter of 2016 was the first time since 2014 that the number of single family homes available for sale exceed the number of homes sold. While this is not yet the case for condominiums, the gap between listings and sales is narrowing. Another indicator suggesting less heated market conditions is the slight reduction in the premium above asking prices sellers have been receiving. During Q1 2016, sellers on average received 101% of asking price vs. 104% in Q2 2015, the most recent high.

The most active neighborhoods for single home sales in Q1 2016 were Novato and San Rafael, comprising 55% of the sales in Q1 2016. This represented a slight reduction in the number of sales, but an increase from a 51% share in Q1 2015. Single family home and condominium sales combined by price range were well distributed in the $500,000 to $1.5 million bracket, comprising 65% of the total sold in Q1 2016. The most significant change in Q1 2016 vs. Q1 2015 was the decline in sales in the $2.0 to $5.0 million bracket. Sales declined by about one-third, from 64 to 44 homes sold.

Of course, all of these trends are reflecting countywide data, but what's happening in each city or even a specific neighborhood may vary widely. Real estate is nuanced and highly local. For more personalized information, call me today at 415.328.4143. I'll match you up with a member of our team who can assist with all your real estate needs.

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