Percent Of Homes In Escrow . . . Who Cares?

Who cares? You should (if you are considering buying or selling a home, that is). The percentage of homes in escrow can be a very telling indicator regarding the state of the market.

For example, a couple of years ago, certain parts of Marin County experienced an “Extreme Sellers Market” with over 55% of homes in escrow at any given time. Today, those same areas are likely to be in a “Neutral” market (e.g., about 30% of homes in escrow). Some other market segments in Marin fall squarely into the “Strong Buyers Market” category.

Of course, whether it is a Seller’s or Buyer’s market has a great impact on negotiations. As a buyer or seller, it is important to understand and appreciate the importance of the “Percent of Homes in Escrow.”

Below is a guide to interpret the numbers as they relate to non-luxury homes (e.g., homes under $2 million) in Marin:

• 0 – 10% of Homes in Escrow — Extreme Buyer’s Market
• 10 – 20% of Homes in Escrow — Strong Buyer’s Market
• 20 – 30% of Homes in Escrow — Buyer’s Market
• 30% – 35% of Homes in Escrow — Neutral Market
• 35% – 45% of Homes in Escrow — Seller’s Market
• 45% – 55% of Homes in Escrow — Strong Seller’s market
• 55% – 100% of Homes in Escrow — Extreme Seller’s Market

Like all statistics in real estate, the percentage of homes in escrow must be analyzed in conjuction with other numerical data to be understood in context, such as average and median sales prices, market segment, days on the market, number of homes sold, inventory, and absoption rates.

If you have any questions or would like to discuss this concept and how it impacts you and your assets, please e-mail me at [email protected].

San Francisco / Marin Ferry Services (Sausalito, Tiburon, & Larkspur)

The ever-more-popular ferry services into San Francisco are really worth a try either for leisure or for commuting. The high-speed ferries take just 30 minutes to get you from Larkspur to San Francisco (and the older boats taking a leisurely and more ponderous 45 minutes).

 

The ferries provide some of the very best views of The City, the Golden Gate Bridge, The Rock (Alcatraz), Angel Island, San Quentin, and the waterfront communities of Tiburon, Belvedere, Greenbrae, and Sausalito. Taking one of the slow boats can be absolutely delightful on sunny days. You can grab a beverage at the bar (yes, there are fully stocked bars) and head out to the deck for one of the most wonderful boat rides you could imagine.

 

There is also service to Giants games at AT&T Park (dropping you off steps from the turn-stiles) and Angel Island (reserve a campsite and stay on the island overnight!). Another wonderful way to take in the sights is to ride bikes over the Golden Gate Bridge to Tiburon (or Sausalito), relax at a local waterfront restaurant (such as Sam’s in Tiburon), and then take a ferry back to The City. You can make a day of it.

 

The Golden Gate service (which runs lines from Larkspur and Sausalito) plans to add another high-speed boat to the Larkspur line in 2009. It will be the largest boat yet, with a seating capacity of 499 passengers. Have fun!

 

Click HERE for the Larkspur & Sausalito schedules.

 

 

Click HERE for the Tiburon & Angel Island schedules.

 

16 White Oak Way, Pointe Marin, Novato

Elegant Pointe Marin home on desirable and quiet cul-de-sac, far from Ignacio Blvd.

Property features include:

• Built in 2002
• 3+ bedrooms, 2.5 bathrooms
• Wonderfully landscaped with automated irrigation
• Efficient dual-paned windows
• 76 gallon water heater
• Dual climate air conditioning and heat
• Gourmet Kitchen (chef?s island, granite counters, stainless appliances, lots of cabinet space, and more
• Master Bedroom (very large with dressing area)
• Newer paint highlights inside
• Master Bath with oversized tub, big step-in shower, dual sinks, and huge walk-in closet
• Open and spacious flowing interior with lots of light
• 3-car Garage
• Formal Dining Room with vaulted ceiling
• Living Room with French Doors and vaulted ceiling
• Close to shopping, restaurants, Marin Country Club, cleaners, etc.

Property Address: 16 White Oak Way, Novato, CA 94949

Listing Price: $949,500

16WhiteOak.com

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If you would like to learn more about this newer home or set up an appointment to see it, please call Kyle Frazier, the listing agent, at (415) 350-9440.

Kyle Frazier, J.D., Broker Associate, CRS, e-Pro
Frank Howard Allen Realtors
Email: [email protected]

Novato Real Estate Market (7/1/07 Home Sales Report)

Novato home sales and real estate values–have they hit slack tide? That’s a tough question. While much of the rest of Marin continues to experience meaningful appreciation and, yes, even multiple offers. Novato home sales are a different story. Of course, Novato homes that are PRICED FOR TODAY’S MARKET, are nicely maintained, updated, and/or located in the most desirable neighborhoods continue to sell (especially those priced under $700,000). Once prices get up above $700,000, however, the percentage of homes in escrow (a good barometer of market strength) dips to about 20% until you get to the $1.5 million price range (at about 13%). These numbers clearly indicate a fairly strong buyers market.

Interestingly, homes priced in the $1 million – $1.5 million range are selling at a similar rate (in terms of percentage in escrow) as those in the $700,000 to $800,000 price range. Homes in Novato that sold during the past month (there were 44 home sales) averaged about 65 days on market for an average price of about $969,000 (about $416 per square foot). Note that the average days on market for active and pending homes was 69 days (higher than that of homes that sold–emphasizing the need to price homes for today’s market).

Current absorption rates are lowest (indicating the lowest inventory relative to demand) in the under $700,000 price range–there is about a 3 month inventory. Homes in Hamilton Field, Pointe Marin, Presidents, Rush Creek, San Marin, Partridge Knoll, and Atherton Ranch continue to be in high demand, as do the new luxury homes at Stonetree. Over the past few weeks 3 homes sold on Windwalker Way (off of Olive Avenue towards Atherton Avenue) in the $1.35 million to $1.6 million range.

If you would like me to run the exact numbers on your neighborhood, just give me a call at (415) 350-9440. It is my pleasure to be of service.

 

 

Marin County, California, Luxury Homes Report (July 2007 Sales and Inventory Analysis)

The number of Marin luxury homes for sale continues to rise. Following the strong early Spring selling season, luxury estates, view and waterfront homes, new construction, and homes with prime locations continue to sell at a very respectable rate. Overall, about 20% of Marin County, California?s luxury homes (those priced above $2 million) are in escrow?there are 166 active listings and 32 in escrow. Proximity to San Francisco continues to be the driving force behind appreciation and sales as reflected by the fact that most of these homes are located in Southern Marin (the majority are in Mill Valley, Sausalito, Tiburon, and Belvedere, and a little further north in Ross and Kentfield).

In the $2 million to $4 million range, the number of active listings is up by 41 for a total of 148 homes. That may seem like a lot. But, in a flurry of activity, 35 homes in that price range sold in Marin last month. Mill Valley, with its convenient location close to San Francisco, had the largest number of homes sold with 14. Tiburon had 6 sales, San Rafael had 3, Belvedere had 2, Corte Madera had 2, and Kentfield and Sausalito each had just 1 sale. Overall, in Marin County, the average days on market was 62 days, the average sales price about $2.78 million (roughly $897/per sq. ft.), and these homes averaged about 3,362 square feet.

In the $4 million and up range, there are currently 50 active homes on the market in Marin, up by 5 from last month. Tiburon leads the pack with 12 homes, followed by Belvedere with 9, Ross with 8, and Kentfield with 7. Sales is this price range over the past month are led by Ross, with 2 sales averaging an astonishingly low 16 days marketing time and $5.2 million dollars sales price (that’s about $1,300/per sq. ft.). We are all waiting to see the sales price for the Bill Graham estate in Corte Madera, which has gone into Pending status at an asking price of $24 million.

Below is a graph identifying the numbers of active listings and homes in contract in Marin?s luxury home market segment. Note that all homes in contract are included in the category ?Pending? even though some are technically ?Contingent? properties. Call Kyle Frazier, CRS, Broker Associate, Frank Howard Allen Realtors of Marin, at 415/350-9440 with any questions.

Marin Cities & Towns	$2 Million ? $4 Million		$4 Million & Up
	Active	Pending	Active	Pending
Sausalito	8	3	2	0
Belvedere	5	2	9	2
Tiburon	23	6	12	1
Mill Valley	20	3	2	1
Corte Madera	2	0	0	1
Larkspur	4	1	0	0
Greenbrae	0	0	0	0
Kentfield	11	2	7	0
Ross	4	2	8	1
San Anselmo	8	1	0	0
San Rafael	19	1	1	0
Novato	5	1	1	0

Reducing Fire Hazards Around Your Marin Home

Over the past few weeks, we have seen the destruction wildfires can bring to communities in the Western States. Those who lived through the fire in the East Bay Hills can attest to the utter destruction and fear wrought by wildfires. Over the past few days, the news has reported suspicious grass fires in Marin. Indeed, there are many areas of Marin County that are particularly sensitive to fire danger. The following information is geared towards protecting against the threat of wildfires, as well as providing information about what to do if confronted with one. For more information, check out their website: FireSafe Marin.

At the heart of preparing against the threat from wildfires, is the concept of “Defensible Space,” which refers to the area around a home that is cleared of dry grass, etc., allowing firefighters a clear means to fight fire and keep it away from your house. It is recommended that you clear all dry grass, brush, and fallen leaves which are within 30 feet of the home (150 feet if you are on a hill).  Much of the following information was obtained from the Marinwood Fire Department website.

Before Wildfire Threatens

Design and landscape your home with wildfire safety in mind. Select materials and plants that can help contain fire, rather than fuel it. Use fire-resistant or non-combustible materials on the roof and exterior structure of the dwelling, or treat wood or combustible materials used in roofs, siding, decking or trim with UL-approved fire retardant chemicals. Plant fire-resistant shrubs and trees. For example, hardwood trees are less flammable than pine, evergreen, eucalyptus or fir trees.

Protecting Your Home

· Regularly clear roof and gutters of pine needles, leaves or other debris.
· Inspect chimneys at least twice a year. Clean then at least once a year. Keep dampers in good working order. Equip chimneys with stovepipes with non-flammable screen of 1/2 inch or smaller mesh.
· Install a smoke detector on each level of your home, especially near bedrooms; test monthly and change the battery two times each year.
· Teach family members how to use a fire extinguisher (ABC type) and show them where it is kept.
· Keep a ladder that will reach the roof.
· Consider installing protective shutters or heavy fire-resistant drapes.
· Keep household items handy that can be used as fire tools: a rake, axe, handsaw or chain saw, bucket, shovel, garden hose.

Create a Defensible Space

To create a defensible space, remove all dry grass, brush, and dead vegetation at least 30 to 100 feet around you home. Here are additional steps to help reduce potential exposure to flames and radiant heat.

· Regularly remove dead and dying vegetation.
· Mow grass regularly.
· Thin a 15-foot space between tree crowns, and remove limbs that are within 10 feet of the ground.
· Remove dead branches that extend over the roof.
· Prune tree branches and shrubs within 10 feet of a stovepipe or chimney outlet.
· Remove vines from exterior walls.

When Wildfire Threatens

If you are warned that a wildfire is threatening your area follow instructions of local officials. Remember, personal safety should always come first!

· Back you car into the garage or park it in an open area facing the direction of escape. Shut doors and roll up windows. Leave the key in the ignition. Close garage windows and doors, but leave them unlocked. Disconnect automatic garage door openers.
· Confine pets to one room. Make plans to care for your pets in case you must evacuate.
· Arrange temporary housing at a friend’s or relative’s home outside the threatened area.

If advised to evacuate, do so immediately:

· Know at least two exit routes from your neighborhood in case of emergency evacuation.
· Wear protective clothing – sturdy shoes, cotton or woolen clothing, long pants, a long-sleeved shirt, gloves, and a handkerchief to protect your face.
· Take a your Disaster Supplies Kit.
· Lock your home.
· Tell someone when you left and where you are going.
· Choose a route away from fire hazards. Watch for changes in the speed and direction of fire and smoke.

If you’re sure you have time, take steps to protect your home:

Inside
· Close windows, vents, doors, venetian blinds or non-combustible window coverings and heavy drapes. Remove lightweight curtains.
· Shut off gas at the meter. Turn off pilot lights.
· Open fireplace damper. Close fireplace screens.
· Move flammable furniture into the center of the home away from windows and sliding glass doors.

Outside
· Seal attic and ground vents with pre-cut plywood or commercial seals.
· Place combustible patio furniture inside.
· Connect garden hose to outside taps.

Emergency Supplies

When wildfire threatens, you won’t have time to search for supplies. Assemble a Disaster Supplies Kit with items you may need if advised to evacuate. Store these supplies in sturdy, easy-to-carry containers such as backpacks, duffel bags or trash containers. Include:

· A three-day supply of water (one gallon per person per day) and food that won’t spoil.
· One change of clothing and footwear per person and one blanket or sleeping bag per person.
· A first aid kit that includes your family’s prescription medications.
· Emergency tools, including a battery-powered radio, flashlight, and plenty of extra batteries.
· An extra set of car keys and a credit card, cash or travelers checks.
· Sanitation supplies.
· Special items for infant, elderly or disabled family members.
· An extra pair of eye glasses.
· Keep important family documents in a waterproof container.

For lots of links to additional fire and safety related materials go to the FireSafe Marin resources page.  Have a safe and fun Summer! 

San Rafael Real Estate Market (July 2007 Home Sales Report)

The real estate market in Marin’s County Seat, San Rafael, has been strong on the whole. Inventory has risen as families intent on moving during the Summer months began putting their homes on the market–there are 183 home on the market.

Home sales continue performing admirably relative to the rest of California and the country, especially the bread and butter homes of San Rafael (those priced between $750,000 and $900,000). These homes continue to sell quickly (although the definition of “fairly quickly” has been extended over the past couple of years). Fourteen of these homes sold last month, making this market segment the leader in homes sold (there were a total of 43 homes sold last month in San Rafael). Following close behind, however, was the $1 million to $1.5 million price range (with 13 sales). As always, homes that are nicely maintained, updated, and/or located in the most desirable neighborhoods continue to sell briskly.

Homes that sold during the past month (again, there were 43 home sales, which is down by 5 from May 2007) averaged about 59 days on market (note that active homes have been on the market an average of over 64 days–underscoring the need to price homes right at the outset), for an average price of about $1,075 (about $539 per square foot). Current absorption rates are lowest (indicating the lowest inventory relative to demand) in the under $800,000 and the $1 million to $1.5 million price ranges. The strongest micro-climate markets during the past month included The Dominican, Glenwood, Terra Linda, Marinwood, and Lucas Valley.

Forbes Magazine Calls Marin County Schools “Best For The Money”

There are lots of reasons people love Marin County, California—the proximity to San Francisco, the easy commute, the weather, the dedicated open space, the beaches, the Bay, the Golden Gate Bridge, the lack of crime, and the list goes on. But, for many, the biggest reason is the schools. It is well known that Marin schools are outstanding and have tremendous parental involvement.

As reported by the Marin Independent Journal, Forbes Magazine recently identified Marin County as providing the best education relative to per capita spending.  As noted by Forbes, “[m]ore spending doesn’t necessarily buy you better schools.” 

Forbes looked at property taxes across the country, per-pupil spending in public schools, and weighed them against student performance (factors such as college entrance exam scores, exam participation rates, and graduation rates.

“Marin County, Calif., provides the best bang for the buck,” declares Forbes. “In 2004 Marin spent an average of $9,356 ($6,579 adjusted for the cost of living relative to other metro areas in the U.S.) per pupil, among the lowest education expenditures in the country. But in return Marin delivered results above the national average: 96.8% of its seniors graduated, and 60.4% of them took the SAT college entrance exam and scored a mean 1133 (out of 1600).”

Marin County schools such as Del Mar, Glenwood, Bacich, Ross, and Rancho have achieved well deserved acclaim and notoriety. Many families moving to Marin seek out homes specifically for these schools. And there are many more great schools in Marin.  Click here for the Marin County Office of Education Public School Information Guide.  Santa Clara County was the only other California County to rank in Forbes’ top 20 nationwide. 

Mill Valley Real Estate (July 2007 Home Sales Report)

Mill Valley home sales and real estate values continue to show resilience in the face of increasing interest rates and negative media coverage. The ease of the commute to San Francisco via the Golden Gate Bridge, along with pleasant weather, keeps prices and sales strong. Mill Valley continues to be the place people in San Francisco generally start with when they decide to move to the Marin County.

The bread and butter homes of Mill Valley are priced between $1 million and $1.5 million and sell fast so long as they are nicely maintained, updated, and/or located in the most desirable neighborhoods–15 of these homes sold in June 2007 (down by 2 from May’s sales numbers). As with the rest of Marin, homes priced aggressively may get multiple offers—note: the winning bid (which is not always the highest bid) is likely to be at asking price or just above (unlike the frenzied market of several years ago when overbids were in the stratosphere). Indeed, several homes received multiple offers over the past month. Mill Valley luxury home sales have also been robust with 13 homes selling in the $2 million – $4 million price range. 

Mill Valley homes that sold during the past month (there were 40 home sales, compared with 41 in June 2007) averaged 50 days on market and sold for an average price of about $1.76 million ($704 per square foot). Homes in Almonte, Strawberry, Sycamore Park, Blithedale and Cascade Canyons continue to be in high demand.

 

If you would like me to run the exact numbers on your neighborhood, just give me a call at (415) 350-9440.

Marin County Real Estate Update (Homes For Sale & Price Ranges)

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