Marin County, California, Luxury Homes Report (November 2008–Sales and Inventory Analysis)

The traditionally slower season for luxury homes sales is here. Nationwide, the number of homes sold in the luxury market is down this month (although sales were up about 7% nationwide as compared with September 2007-the most recent data available). The financial debacle is unquestionably impacting (or should I say, infecting) the market. Marin County buyers in these price bands are often portfolio investors, entrepreneurs, executives, or business owners and all are now feeling the bite of economic decline and many have decided to spell their purchasing decisions for the time being.  Meanwhile, the number of such homes has increased, placing pressure on pricing. Indeed, even portfolio buyers have taken a wait and see approach. 

Inventory in Marin County, California’s, luxury home market (e.g., homes for sale between $2 million and $4 million) is holding steady. There are 130 homes on the market, compared to 129 homes in October 2008. October saw a respectable number of sales with 15 homes sold–same as September 2008. Mill Valley again experienced the most luxury home sales (with 5). San Rafael had 4 sales, Tiburon had 2 sales, and Sausalito, Belvedere, and San Anselmo each saw 1 home sold in this price range. The average days on market for the homes that sold was 117 days and the average sales price was just over $2.785 million (roughly $756/per sq. ft.), with an average of 3,896 square feet. Belvedere and Tiburon have 4 and 3 homes currently in escrow. I expect the number of sales next month will drop precipitously as the full effect of the stock market’s recent plunge takes hold.

The above graph identifies the numbers of active listings and homes in contract in the Marin County luxury and ultra-luxury home market segments. Note that all homes in contract are included in the category “Pending” even though some are technically “Contingent” properties (e.g., the buyers have not removed all contingencies). This information is limited to Marin County’s Highway 101 corridor towns and cities that consistently maintain a monthly inventory of luxury and ultra-luxury homes (Western Marin coastal homes are not included). Call Kyle Frazier, Marin Realtor & CRS, Broker Associate, Frank Howard Allen Realtors of Marin, at 415/350-9440 for more luxury home market information. You can also e-mail Kyle at [email protected].