Marin Luxury Report (July 2010)

July 26, 2010

As reported in June 2010, “real buyers” continue purchasing “done” homes in prestige locations such as Mill Valley, Belvedere, Ross, Kentfield, etc., along with “value” properties with locational upside, views of San Francisco, southern exposures, and knolltop properties. Marin County’s luxury home real estate market reflects increased sales velocity driven by buyer optimism. In the $2 million to $4 million price band, June 2010 sales eclipsed last year’s total, inventory is down from last year, and the number of homes with accepted offers (in escrow) is high. This combination of factors looks promising for continued improvement. And we are not alone — click HERE for a detailed snapshot of current national trends from the Institute for Luxury Home Marketing. I also believe that the imminent resolution of the tragic oil spill in The Gulf of Mexico will help improve public optimism, which has been suppressed by this calamity.

$2 Million to $4 Million Luxury Homes

True to last month’s prediction, trades were again up significantly in this luxury segment (with 20 sales, Marin County more than doubled last year’s total for the month and equaled May’s numbers) — another 24 homes currently in escrow (more than last month). Pending sales is a good leading indicator of increased sales next month. Certainly, buyers are feeling some urge to buy as it appears that the overall economic and housing environments are improving and pricing in the marketplace increasingly suggests “value.” Inventory remains relatively low at just 159 homes actively on the market (up by 22 from last month).

[Click HERE for the rest of this article, courtesy of www.ImagineMarin.com.]


Marin Luxury Report (June 2010)

July 26, 2010

As reported in previous months, “real buyers” continue to snap up homes in prestige locations such as Mill Valley, Belvedere, Ross, Kentfield, etc., along with “value” properties with locational upside, views of San Francisco, southern exposures, knolltop properties. Without question, Marin’s luxury home market is showing signs of increased velocity and buyer optimism. In the $2 million to $4 million price band, May 2010 sales eclipsed last year’s total, inventory is down from last year, and the number of homes with accepted offers (in escrow) is high. This combination of factors looks promising for continued improvement. And we are not alone — click HERE for a detailed snapshot of current national trends from the Institute for Luxury Home Marketing. The below chart shows the dramatic increase in the number of luxury homes sold in Marin County, as compared with last year.

$2 Million to $4 Million Luxury Homes

True to last month’s prediction, sales were again up significantly in this luxury segment (with 20 sales, Marin County more than doubled last year’s total for the month). Incredibly, we have another 27 homes currently in escrow (more than last month). Pending sales is a good leading indicator of increased sales next month.Certainly, buyers are feeling some urge to buy as it appears that the overall economic and housing environments are improving and pricing in the marketplace suggests “value.” Inventory remains relatively low at just 137 homes actively on the market.

[Click here for the rest of the report courtesy of www.ImagineMarin.com]

Marin Real Estate (July 2010)

July 26, 2010

We have multiple economic drivers and underlying fundamentals that impact our local real estate
markets. Housing prices, interest rates, job growth and inflation/deflation are significant variables in
the Bay Area housing market. While we could not predict either the economic shift that began in
August 2007 or the duration of the economic volatility caused by the shift, we do have a few very
positive fundamentals present today.
Interest rates for conforming mortgages ($729,750) and jumbo mortgages are currently at historic
lows since Freddie Mac started recording in 1971 – see rates in the mortgage rate table on page
two. Housing prices remain 20% – 40% off the 2006 / 2007 peak. Inflation is constrained mainly via
Federal Reserve policy and finally, the San Francisco Bay Area job market, while at a 20-year high
for unemployment has stabilized (10.5%) and may be illustrating signs of stability / modest growth.
Whether cyclical, seasonal or “bouncing across the bottom”, our real estate markets remain
volatile and somewhat unpredictable but they are showing early signs of demand returning to the
market versus the 2006 / 2007 peaks. Many of our indicators have turned positive (“green”) for the
first time in nearly two years. The most encouraging indicator is volume (units and $) returning to the
market. Although we are comparing statistically to Q2 2009 which was arguably the second worst
quarter we may have seen in recent history; the increasing volume is a reflection of client
confidence and a precursor to long term stability and ultimately appreciation. The charts on the
inside pages provide more specifics on the local markets.
I see opportunity in our real estate markets every day. My efforts are always focused on
balancing your priorities for a home, your investment and budget tolerances versus the
dynamics in each local market we serve. I strive to match these investment criteria with my
experience, market knowledge and timing to provide the best advice to you and your family.
Please call on me to review your thoughts on our real estate markets.

Marin Real Estate (June 2010)

July 26, 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.

[For the rest of the article, Click HERE.]

Pacific Union Novato Real Estate Market Update (July 2010 Novato Home Sales Report)

July 23, 2010

The Novato, California real estate market continues its torrid year with 49 sales in June — up from 38 sales in May 2010. The average sales price of Novato homes in June 2010 was $644,778. These homes averaged 98 days on market, were about 2,162 sq. ft., and averaged roughly $306 sq. ft.

Novato’s price per square foot has hovered between 3-5% of $300 for a year now — in my mind, we are seeing the gradual recomposition of the market in the era of the “New Normal.” Prices are holding steady, particularly in the entry level and move-up price bands. This is good news for buyers and sellers alike. Moreover, historically low interest rates and added sales are giving buyers adequate impetus to make their move.

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

  • 47% of homes priced under $500,000;
  • 34% of homes between $501,000 and $600,000;
  • 36% of homes between $601,000 and $750,000;
  • 33% of homes between $751,000 and $1 million;
  • 18% of homes between $1 million and $1.5 million;
  • 13% of homes between $1.5 million and up.

Of the Novato homes that sold in June 2009:

  • 24 homes were priced under $600,000;
  • 22 homes priced from $601,00 to $1 million (the Novato move-up market is hot); and
  • 3 priced from $1 million and up.

NEW HOMES IN NOVATO: The 3 Model Homes being built at The Landing at Hamilton Field (I am the exclusive marketing agent for this project), located adjacent to South Gate in Hamilton Field, will open in mid-August. We expect that the first homes will be ready for occupancy in September 2010. Pricing begins in the mid-$800,000’s. Interest surrounding this new luxury community has been significant. Please call me at (415) 350-9440 for more information. Or, visit our website at www.TheLandingNovato.com.

If you would like to have the value of your Novato home professionally evaluated, 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, Realtor, Certified Residential Specialist (CRS), and a Certified Luxury Home Marketing Specialist (CLHMS), with Christie’s Great Estates | Pacific Union International. It is always my pleasure to be of service.

Postscript: Homes in Pointe Marin, Country Club, Hamilton Field, Rush Creek, and Bel Marin Keys generated the most calls and showings this past month. My listing at 94 Maybeck Street, Novato (South Gate at Hamilton Field) sold for 98.7% of list price in 10 days. In addition, we have also pre-sold one of the new homes at The Landing at Hamilton.