Novato Real Estate Market Update (October 2008 Home Sales Report)

October 6, 2008

We had drizzle of rain last week and today is blustery and cold. Autumn is definitely sinking in. Yet, despite the apparent problems faced by many around the country, the Novato real estate market is teetering on “hot.” Buyers are focused and seemingly undeterred (especially when it comes to writing offers below asking price–sometime significantly so).

Sellers with a need to sell are embracing aggressive pricing measures as foreclosures continue sapping equity from neighboring homes. As I have said before and I will say again, Novato is the Valhalla of value in Marin. And those whose financial situations don’t support a run at the higher priced homes of Southern and Central Marin are flocking to Novato. Although interest rates are bouncing up and down on a daily basis (literally), those who can qualify for a mortgage are moving in (literally). We are definitely seeing investors moving out of the stock market and into the bullish realm of Novato real estate.

There are 34 homes under $500,000 (down by 2 from September 2008) and 43% of these are in escrow. There are a total of 86 homes under $600,000 currently on the market. At the other end of the spectrum, Novato’s resurgent semi-luxury market ($1 million to $1.5 million price range) posted another 5 sales (there have been 24 such sales over the past 4 months). Overall, an astonishing 53% of Novato condos are in escrow. But, the most surprising market segment is the $600,000 to $750,000 price band with 27% of homes in escrow. This price band has been sluggish through much of the year.

Forty-six Novato homes sold in September 2008–up by 5 from August 2008. These homes averaged about 139 days on market, sold for an average sales price of $715,000 (roughly $338 per sq./ft.). Homes in Pointe Marin, Rush Creek, Bel Marin keys, and San Marin continue to get robust numbers of showings and/or interest.  

Price Range

Total Homes

Pending Listings

Up to $600K

86

35%

$600K – $750K

 48

27%

$750K – $1 mil.

56

14%

$1 mil. – $1.5 mil.

44

11%

$1.5 mil. & Up

23

5%

 

For a brief explanation of the importance of the statistic addressing the percentage of “Pending” listings, click HERE. If you would like me to run the exact numbers on your neighborhood, just give me a call at (415) 350-9440. It is always my pleasure to be of service.

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