History Repeats Itself — Marin County Real Estate Appreciation
Everyone knows that, barring unusual circumstances, real estate prices move upwards over time. Of course, there are cycles. But, over time prices rise. Nowhere is this phenomenon more apparent than Marin County, California. According to the Marin Association of Realtors, the prices for single family homes and condominiums have gone up every year for forty years (except during the recession of 1990-1992).
- In 1987, the average price of Marin homes was under $200,000.
- In 1997, the average price of Marin homes was over $400,000.
- In 2007, the average price of Marin homes is over $1.2 million.
With these facts in mind, buyers can confidently be assured that although prices have softened in the past year in some parts of Marin (but, certainly not all of Marin), prices will continue to rise over time. In addition, the last time home prices softened in the early 1990’s, interest rates were 18%. Today, interest rates are about 6.25% (for conforming loans). Of course, these historically low interest rates will not last forever. And history tells us that prices will go up. So, the overall market environment for buyers is as good as it will likely get for any meaningful time frame.