The lazy days of summer are here. Whether you're headed out on vacation or enjoying a staycation, we're all in a vacation frame of mind. But the real estate market never takes a break and we are officially half way through the year. Here are a few trends that have emerged: (full market report link)
- Median home price in the first half of 2016 in Marin was $1,200,000 vs. $1,105,000 during the first half of 2015, a 9% increase.
- Available inventory took a nose dive. 959 homes for sale in the first half of 2016 vs. 1,104 homes for sale in the first half of 2015 or a 13% decrease in inventory
- A quick flyover of various Marin communities in the first half of the year showed 134 homes sold in Mill Valley for a median price of $1,500,000, 221 sold in San Rafael for just over $1,000,000, Tiburon sold slightly less homes than the previous year for a median price of $2,157,000, Larkspur sold 18 homes inn 2016 vs 20 in 2015 a median price of $1,530,000, Sausalito sold 31 homes for a median price of $1,915,000 and Kentfield maintained a median sale price of $2,000,000.
- Properties priced over $2 million have seen marked slowdown. As of last week there were 134 homes priced over $2 million and 29 of them were in contract or 17.7%. Many of the homes priced over $2 million that have sold experienced a price reduction, longer days on market and discounted sale prices before eventually selling.
- Interest rates are at record lows. Under 3.75% for a 30 fixed rate jumbo loan and 2.87% for a 5 year adjustable rate. With the turmoil in the world economy (Brexit and China anyone?) , these rates should remain steady at least through the end of the year and possibly beyond, especially with our presidential election looming.
What to expect next? A normalizing economy and as a result a normalizing real estate market. That said, inventory should remain relatively tight and competition by multiple bidders should continue in the more entry level price points which is defined as homes and condominiums under $1.5 Million. Sellers of prime properties should be have no problem selling as long as they price correctly by paying close attention to recent comps. It’s looking like an interesting second half of the year coming up.
Call me if you need help sorting through this information. Have a great summer!