Pacific Union | Marin Real Estate Update | June 2010
Year over year prices seem to have leveled in many price segments and locations within Marin — some areas have even seen prices increase (albeit nominally). Countywide supply and demand figures suggest an improving real estate environment. Supply is up 12% from last year and sales of entry level (3 bedroom, 2 bath homes with at least 1,500 square feet and priced under $1 million) are up a modest 10% from May 2009. Recent news reports in the local media have noted increased median prices, but that reflects the fact that luxury homes are selling once again after a lackluster 2009. I do not believe prices overall are increasing yet.
As noted in various recent articles, much of the strength in today’s home sales market stems from the red-hot entry level market segment. As would be expected, with relatively flat inventory and more sales, the absorption rate (e.g., the number of month’s worth of inventory) continues hovering just above 3 months for entry level homes. This is very low. Attractive loan terms and a pervasive sense among buyers that we have hit bottom, are resulting in sales. While the first time buyer tax credit has been extended for those already in escrow, that incentive has had a minimal impact in Marin because of the relatively low income thresholds required to qualify.
Below is a chart tracking escrows — roughly 27% of Marin County homes are in escrow (this includes ALL homes in every price band).
- Kyle Frazier, Broker Associate, Certified Residential Specialist (CRS), Certified Luxury Home Marketing Specialist (CLHMS), Realtor
- Christie’s Great Estates | Pacific Union International Marin
- (415) 350-9440
- E-Mail Kyle Frazier