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

kylefrazierMarin Luxury Home Reports, Marin Market Updates

The number of homes for sale in the $2 million to $4 million luxury home market in Marin County, California dipped slightly this month with 121 active listings, compared to 127 homes in June 2008. This reduction in inventory was accompanied by another solid month of sales–26 homes sold (one more than in May 2008). As noted last month, and this bears repeating, while the number of homes sold in the non-luxury market this year compared to last year is down by about 25%-30% (depending on where you look), the luxury market has NOT experienced a similar decline. This is great news for owners of luxury homes in Marin!

Mill Valley and Kentfield led the way with the most luxury home sales (each with 5 homes sold). Belvedere, Larkspur, and San Rafael had 3 sales each. Ross, San Anselmo, and Sausalito had 1 sale. The average days on market for homes that sold was a mere 59 days (8 days less than last month) and the average sales price was just under $2.5 million (roughly $772/per sq. ft.), with an average of 3,353 square feet.

The inventory level in Marin County’s ultra-luxury market (homes priced in the $4 million and up range) rose to 54 active listings, compared with 46 last month. Tiburon, as usual, boasts the largest number of such homes with 19. It is followed by Belvedere with 12. Other cities / towns with homes in this price bracket are Kentfield, Sausalito, Mill Valley, Ross, and San Rafael. We had 3 sales last month (compared with 5 in May 2008) and just 2 of these homes are currently in escrow. Ultra-luxury homes that sold last month averaged a lengthy 237 days on the market, sold for an average of $4.95 million (about $930/sq. ft.), and were 5,411 square feet. 
 
Every once in a while I feel compelled to re-emphasize the importance of pricing a home correctly. Although I know that sellers recognize this on some level, this past month provides a startling example of how pricing impacts sales price. Both homes that sold in Tiburon last month were on the market for a long time (one sat for 187 days and the other for well over a year). These homes each ended up selling for less than 75% of their list price. Meanwhile, the home that sold in Kentfield was on the market for about 90 days and sold for over 90% of list price. Indeed, experience teaches that the longer a house sits on the market the less it will sell for. Thus, sellers must resist the Siren call for a higher list price (we all have a vague recollection of how Odysseus was restrained in The Odyssey). Price it right and you will make more money and live happier. For other recent thoughts on pricing, click HERE. 

 

Marin Cities & Towns

$2 Million — $4 Million

$4 Million & Up

Active

Pending

Active

Pending

Sausalito

7

0

2

0

Belvedere

8

2

12

1

Tiburon

25

6

19

1

Mill Valley

21

7

3

0

Larkspur

4

3

0

0

Corte Madera

0

1

0

0

Kentfield

6

2

2

0

Greenbrae

1

0

0

0

Ross

3

2

5

0

San Anselmo

19

1

0

0

San Rafael

16

0

3

0

Novato

6

0

0

0

 

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, CRS, Broker Associate, Frank Howard Allen Realtors of Marin, at 415/350-9440 with any questions about a particular neighborhood or your situation. You can also e-mail Kyle at [email protected].

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