Marin Real Estate under 500k (Unpublished)Posted by Erika Davito on (Unpublished)
Hot and heavy is how I would describe the real estate market in Marin under $500,000. If you have read the last 2 blogs about the current real estate market in Marin, it will hit home with you that inventory is at an all time low. Although the inventory is low in all price points, I would have to say the competition is heaviest in the entry level arena in Marin - real estate priced under 500k.
Comparing January 2011 to January 2012, home sales under 500k home sales are increasing and so are prices. Here is a summary of the statistics:
1) There were 343 homes for sale in Jan. of 2011 vs. the 151 available for sale in Jan. 2012
2) Pending sales (homes in contract) increased by 50%.
3) Median home sales price was $339,000 in Jan. 2011 vs. $350,000 in Jan. 2012
From all of the multiple offers I am experiencing myself and hearing about the same experiences from other Realtors, I would guess that there are on average 6 buyers to every home available for sale. Examples include: One town home for sale in Terra Linda in Green oaks listed at 349k had 7 offers (2 of which were cash buyers). The condo's assessed value is around 345k. Likely the home will sell for over 360k. A town home in Hamilton listed at $245k had 6 offers and will likely sell for over $280k. Above the 500k price point we are experiencing similar competition for those wonderful homes priced to sell in the right neighborhoods. In the coveted area of Sycamore Park, Mill Valley a home listed for $1.2M had 6 offer and will close for over $1.4M (200k above the asking price). Buyers want to buy into this market now as demonstrated by the multiple offers we are seeing in the marketplace vs. last year when many buyers were sitting on the fence.
My interpretation of this data, the local news reports and from my experience out in the field is that the consensus among home buyers is that the market has hit bottom. Home buyers feel it's time to seize the opportunity to buy a home in Marin - where in years past many home buyers would not have thought they could afford to buy a home in Marin. With interest rates at historic lows and rents on the rise, why not buy a home for the same amount or less than you are paying for rent?
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