Novato Real Estate Market (5/1/07 Home Sales Report)

Novato home sales and real estate values are proving to be somewhat sluggish as we enter the Spring selling season. Novato’s homes that are nicely maintained, updated, and/or located in the most desirable neighborhoods continue to sell at a relatively quick pace (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 25%.

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 $1 million price range. Homes in Novato that sold during the past month (there were 43 home sales) averaged about 65 days on market, for an average price of $882,640 (about $433 per square foot). Current absorption rates are lowest (indicating the lowest inventory relative to demand) in the $700,000 to $800,000 price range–there is about a three 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.