Novato Real Estate Market Update (December 2009 Home Sales Report)

December 15, 2009

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.

Below are the percentages of homes in escrow in each of Novato’s major price bands:

  • 74% of homes priced under $500,000 (78% last month);
  • 65% of homes between $501,000 and $600,000 (60% last month);
  • 53% of homes between $601,000 and $750,000 (same as last month);
  • 33% of homes between $751,000 and $1 million (31% last month);
  • 19% of homes between $1 million and $1.5 million (down from 23%);
  • 0% of homes between $1.5 million and up.
Importantly, and in line with recent months, the move-up price bands are exhibiting strength:
  • 22 homes priced under $600,000 sold in November 2009
  • 12 homes priced from $601,00 to $1 million sold in November 2009
  • 3 homes priced from $1 million to $1.5 million sold in November 2009
Homes in Pointe Marin, Country Club, South Gate at Hamilton Field, Rush Creek, and Bel Marin Keys generated the most calls and showings this past month.

If you would like me to run the exact numbers for your Novato neighborhood or if you have any questions about Novato’s many delightful communities, just give me a call at (415) 350-9440. My name is Kyle Frazier. I am a Broker, Certified Residential Specialist (CRS), and a Certified Luxury Home Marketing Specialist (CLHMS), with Christie’s Great Estates | Morgan Lane Marin Real Estate (Pacific Union International). It is always my pleasure to be of service.

“Give Yourself a Raise. Move to Novato.”