Novato Real Estate Market Update (December 2009 Home Sales Report)
The strong Novato, California real estate market continues on its journey into recovery. The average sales price of Novato homes in November 2009 was $620,851. These homes averaged 79 days on market, were about 2,103 sq. ft., and averaged roughly $316 per sq. ft. Novato’s absorption rate (e.g., number of months’ inventory of homes for sale based on last month’s sales totals) has dipped to historically low levels — a scant 2.69 months worth of available inventory overall (95 single family homes are currently for sale in Novato) . A quick look at the supply and demand curve over the past 2 years is striking — supply is down by 35% and sales are up 42%. No wonder my Novato colleagues agree that it appears our 3+ year bear market in local real estate is coming to an end.
The broad based appearance of solidity in the marketplace is anchored by the low end of the market, but is also reflected in the higher end and by zip code. The chart below reflects the number of months’ inventory in the $800,000 to $900,000 price band. In this “move-up” price band, there is about 3 months’ supply of homes on the market. Generally speaking, 5-6 months of inventory reflects a balanced market and anything under 4 months, a seller’s market.