March 2017 Novato Real Estate Market Update | Pacific Union Home Sales Report
March 2017 Novato Real Estate Market Update | Pacific Union Home Sales Report. With the real estate market priming for 2017, we are beginning to see some new listings arrive early in the selling season, although inventory remains incredibly tight. Novato home sales numbers in February 2017 were stronger than anticipated with a total of 26 sales — these are sales that were initiated in January 2017 which is a very slow month historically and this year had the added hindrance of constant inclement weather. Off-market sales continue to fuel a market that is starved for inventory as the top agents rely on networking to effectuate our clients desired paths into and out of their homes. February is never a particularly strong month for closings, but I anticipate seeing increased inventory in months ahead. As with most realtors in Marin County (generally) and Novato (in particular), the subtle softening in the marketplace over the past several months seems to have slowed. The market is hot in this moment for sellers.
Overall, in Novato, the 26 trades sold at an average price per foot of $462 (price per foot has remained relatively static over the past 6 months). Likewise, the presence of Novato’s upper tier / luxury home market (homes over $1 million) has grown considerably over the past year — in fact, last year I added a new price band to my analysis focussing on homes in Novato priced over $1.5 million. Certainly, more and more buyers feel the “bang for the buck” in driving an extra 10 minutes from Sir Francis Drake is worth it. We are also seeing large numbers of longtime Marin residents selling their multimillion dollar homes in Tiburon, Mill Valley and Ross Valleyand transferring their tax base to new / newer homes in Novato, often focussing on ranch style homes. As noted above, numerous sales are also being conducted privately by agents, outside of the MLS, via netorking groups such as the Top Agent Network (TAN — Top 10% of agents) and the Marin Platinum Group (MPG — Top 100 agents). Generally, approximately 10-15% of homes are sold without ever hitting the market.
The average sale price for Novato homes in February 2017 was $1,010,756. Novato (especially Southern Novato) has unquestionably been one of Marin County’s hottest markets this year due to the good weather, easy commute and clear bang-for-your-buck of these newer homes.
Overall, Novato real estate sales in Febuary 2017 averaged 72 days on market (DOM), were about 2,356 sq. ft., and averaged roughly $462 per sq. ft. Novato’s absorption rate (e.g., the number of months’ inventory of homes for sale based on last month’s sales totals) is currently 5 weeks. This reflects a very tight market — balanced markets have 4-6 months of inventory.
Below are the percentages of homes in escrow in each of Novato’s major price bands (note that due to increasing sales prices, I have eliminated the “under $500,000″ price band as few homes are sold for less than that amount):
■ 68% of homes priced under $750,000;
■ 50% of homes between $751,000 and $1 million;
■ 33% of homes over $1 million;
Of the 26 Novato, CA homes that sold in Febuary 2017:
■ 7 homes sold under $750,000;
■ 10 homes sold from $751,00 to $1 million; and
■ 9 homes sold for $1 million and up.
Single family homes in Rudnick Estates (a brand new home development), Pointe Marin, Marin Country Club Estates, Rush Creek, Hamilton Field, and Bel Marin Keys elicited the highest numbers of calls and showings this past month. If you would like me to run the exact numbers for your Novato neighborhood or if you have any questions about Novato’s schools or many delightful communities, just give me a call at (415) 350-9440. My name is Kyle Frazier. I am a J.D., Broker, Realtor, Certified Residential Specialist (CRS), and a Certified Luxury Home Marketing Specialist (CLHMS), Top Agent (member), Marin Platinum Group (member) with Pacific Union International Real Estate. It is always my pleasure to be of service.
Note: I specialize in off-market sales of luxury homes in Marin County. If you appreciate discretion and want the BEST result, call me to discuss your situation.