Pacific Union International | Novato Real Estate Market Update (June 2013 Novato Home Sales Report)

June 18, 2013 by  

Pacific Union International | Novato Real Estate Market Update (June 2013 Novato Home Sales Report). A reporter from a large national newspaper asked me to characterize Novato, California’s real estate market last week and I told him that the sales figures in May were simply unbelievable and that is was by far the best month in the best year we have seen since 2005. Indeed, while a whisper of doubt may have permeated past market reports, none remains now — real estate is back.  Ongoing suppressed inventory continues to drive prices seemingly straight up. That, coupled with still low interest rates and intense buyer demand are propelling sales prices not seen for 5 years. “Ready, able, and willing” buyers act quickly.

To give an idea of just how strong the market is, consider this: last month in Novato 11 homes sold for $500K or less (another 19 are in escrow). Today there are just 4 homes on the MLS in Novato under $500K. That means the absorption rate (e.g., number of months’ inventory of homes for sale based on last month’s sales totals) for Novato homes under $500K is about 11 days. I normally track absorption in months, not days (a typical, balanced market would reflect about 6 months worth of homes). Nobody has EVER seen an environment like this!

Even the $1 million+ price point has seen significant activity over the past 3 months as affluent buyers are returning to Novato to capture value and lifestyles unobtainable elsewhere in Marin County.

My continuing advice to sellers remains — “If you want to sell in 2013, get your home out there!” CALL ME if you are thinking of selling. My systems can get you on market quickly with the very best marketing available. And my pricing strategies and negotiating skills will get you top dollar. We will soon see an avalanche of homes come to market and prices will stop rising. You want to be ahead of that avalanche — and it is coming soon.

May 2013 sales figures for Novato, CA are incredibly strong — Novato had 71 single family homes sell (there were 39 sold in April). Due to the factors noted above, buyer urgency is higher than I have ever seen. Buyers are making very strong offers with lightning speed (sometimes without inspection contingencies) on all fairly priced homes (especially those under $1 million and/or located in Pointe Marin or Marin Country Club Estates). The average sale price for Novato homes that sold in May 2013 was $744K. Novato is now also seeing strong activity on listings over $1 million (30% of $1 million+ homes are in escrow).

Novato real estate sales in May averaged 59 days on market, were about 2,255 sq. ft., and averaged roughly $346/sq. ft. (note: this is up from $285/ft a year ago). Novato’s overall absorption rate (e.g., number of months’ inventory of homes for sale based on last month’s sales totals) is still very low despite a large number of homes coming to market in the past 7-days — it is hovering at just under 1 month (65 single family homes are actively for sale in Novato).

Below are the percentages of homes in escrow in each of Novato’s major price bands:
■83% of homes priced under $500,000;
■69% of homes between $501,000 and $750,000;
■56% of homes between $751,000 and $1 million;
■30% of homes between $1 million and up.

Of the 71 homes that sold in May 2013:
■11 homes were priced under $500,000;
■51 homes priced from $501,00 to $1 million; and
■8 homes priced from $1 million and up.

Homes in Greenpoint, Hamilton Field, Pointe Marin, Marin Country Club Estates, 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 schools or many delightful communities, just give me a call at (415) 350-9440. My name is Kyle Frazier. I am a J.D., Broker, Realtor, Certified Residential Specialist (CRS), and a Certified Luxury Home Marketing Specialist (CLHMS), with Christie’s Great Estates | Pacific Union International Real Estate. It is always my pleasure to be of service.

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