The Landing Novato

Novato Real Estate Market Update (January 2010 Home Sales Report)

January 18, 2010

“Give Yourself a Raise. Move to Novato.”

The Novato, California real estate market continues on its journey into recovery. We had 42 sales in December 2010. The average sales price of Novato homes in December 2010 was $634,152. These homes averaged 113 days on market, were about 2,227 sq. ft., and averaged roughly $293 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 2.38 months worth of available inventory overall (100 single family homes are currently for sale in Novato).

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

  • 67% of homes priced under $500,000 (74% last month);
  • 66% of homes between $501,000 and $600,000 (65% last month);
  • 42% of homes between $601,000 and $750,000 (53% last month);
  • 33% of homes between $751,000 and $1 million (same as last month);
  • 24% of homes between $1 million and $1.5 million (19% last month);
  • 0% of homes between $1.5 million and up.
Importantly, and in line with recent months, the move-up price bands are exhibiting strength:
  • 23 homes priced under $600,000 sold in December 2009
  • 17 homes priced from $601,00 to $1 million sold in December 2009
  • 10 homes priced from $1 million and up sold in December 2009
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 (priced at $842,000) went into escrow after just 10 days on the market. 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.

The Landing at Hamilton Field, located adjacent to South Gate, is scheduled to begin pouring foundations for the model homes (there will be 3 models) in February 2010. The models are expected to open in April 2010, and the first homes will be ready for occupancy in July 2010. Pricing will begin 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.

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.”

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

November 6, 2009

Leaves are starting to hit the ground as the days grow shorter. But, Novato’s hot market shows no signs of cooling down. In October 2009, 50 Novato, California homes sold, compared with 35 sales in September 2009. Suffice it to say, the Novato real estate market is hot. Entry level home sales have shown sustained strength for the past 6 months. The number of homes actively listed in Novato remains very low compared with the rest of Marin (and the percentage of homes in escrow remains much higher than the rest of Marin). This exceptional demand is based on stunning affordability (homes are selling now for prices nobody could have dreamed of 3 short years ago) and the fantastically low interest rates.

While the average sales price of Novato homes rose in August to a remarkable $713,440 (based in large part on the makeup of sales), that number fell back to Earth in September — $646,389. Last month, the average sales price rose to $667,788.

Certain zip codes are performing exceptionally well. For example, in 94949 (Southern Novato) the percentage of homes in escrow is up 38% from last October and the average days on market is down 70%. This is simple supply and demand. Savvy buyers waiting for “the bottom to hit” recognize that we may be there and that any further price erosion will be outweighed by increased interest rates which are likely around the bend. Surely, home buyers in Novato are finding that it is increasingly difficult to identify “turnkey” homes under $550,000. In the 94949 zip code, median prices year over year dipped a mere 3%. I think many observers would be surprised. Local agents are all talking about a “bounce” in prices over the past several months.

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

  • 78% of homes priced under $500,000 (up from 73% last month);
  • 60% of homes between $501,000 and $600,000 (down from 66% last month — we have 5 new listings that just came on the market or this number would be higher);
  • 45% of homes between $601,000 and $750,000 (down from 53%);
  • 31% of homes between $751,000 and $1 million (about the same as last month);
  • 23% of homes between $1 million and $1.5 million (down from 31%);
  • 0% of homes between $1.5 million and up.
Importantly, and in line with recent months, the move-up price bands are selling as well as the entry level properties:
  • 26 homes priced under $600,000 sold in October 2009
  • 16 homes priced from $601,00 to $1 million sold in October 2009
  • 5 homes priced from $1 million to $1.5 million sold in October 2009
In fact, more homes sold in October 2009 in the $1 million to $1.5 million price band in Novato than sold in Mill Valley in that same price band. I have been saying for years that the Novato luxury market is on the rise and we are seeing tangible sales figures support my predictions. This trend also coincides with the extraordinary high percentages of homes in escrow. Meanwhile, inventory continues to shrink with just 117 single family homes currently for sale in Novato, CA.

Real Estate Market Chart by Altos Research www.altosresearch.com

Novato homes that sold in October 2009 averaged 100 days on market, were about 2,267 sq. ft., and sold for an average sales price of $667,788 (roughly $310 per sq. ft.). Novato’s absorption rate (e.g., the number of months of inventory currently available in Novato) has dipped to historically low levels — just 2.3 months worth of available inventory overall.

The chart below reflects activity in the $800,000 to $900,000 price band. In this “move-up” price band, there is less than 2 month’s inventory. Lower price bands are even more constrained. Generally speaking, 5-6 months of inventory reflects a balanced market and anything under 4 months, a seller’s market.

Homes in Pointe Marin, Country Club, 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.”

Best Location in South Gate at Hamilton Field (Novato, California)

October 30, 2009

(In Escrow 1/16/10) This is a special home with immutable qualities not found in other South Gate at Hamilton Field listings. Most signifricantly, this gorgeous home is sited adjacent to the wetlands restoration project and has no immediate neighbor to the east or north. Even the neighbor to the west is set back — a very rare combination. Located at 94 Maybeck Street, this home features 5 bedrooms and 3 baths (with a bed and bath downstairs), a chef’s kitchen, and a large yard with lots of grass and tasteful landscaping.

Live and thrive in Hamilton Field’s coveted South Gate neighborhood in the most rarely available location (a corner lot on the wetlands). Few South Gate homes on the levee have come to market in the past 3 years. This is your chance!

Great Room configuration. Kitchen with granite counters, chef’s island, breakfast bar, and work station. The potential for four spacious bedrooms upstairs (note that one room, which is very big, does not have a closet) and 3 Baths. Downstairs also has a bedroom and full bathroom. Dining Room with vaulted ceilings, Living Room, Laundry Room, and more. The luxurious Master Suite provides views across the Bayside open space and watershed.

Facts, Features, and Amenities:

  • Contemporary home on the levee, set back from the street
  • No rear or immediate northern neighbors
  • 5 Bedrooms, 3 Baths, 2-car attached garage
  • Master Bedroom with his-and-hers walk in closet and large master bath
  • Formal Dining Room with vaulted ceiling opens to Living Room
  • Chef’s kitchen with island, ample storage space, and granite counters, 5-burner gas range, built-in microwave, breakfast nook and work station, and pantry
  • Utility/Laundry Room
  • Fabulous views toward The Bay from upstairs
  • Gorgeous landscaping with large grassy areas in the front, side, and back yards and mature trees
  • Vegetable garden patch
  • Fireplace with slate surround and custom mantle
  • Media center built-ins in Family Room
  • Wired for internet, cable, and phone
  • Fire suppression sprinklers throughout home
  • Automated landscape and lawn irrigation system
  • Backs to open space with direct access to the proposed Bay Trail
  • Close to all Hamilton amenities: South Gate Park, Pool, YMCA, Public Library, Art Museum, Café, Hangars, Little League, Soccer Fields, Racquetball Courts, Tennis Courts, Basketball Courts, Hamilton Landing businesses, Hamilton Marketplace, skateboard park, and Gymnasium
  • Nearby shopping and dining include the newly opened Hamilton Marketplace including Safeway, Pete’s Coffee, Sonoma Latina Grill, La Boulange, Pasta Moto, and Toast
  • Enjoy the quick Southern Novato commute to SF with HWY 101 widening project completed (southbond and northbound carpool lanes both opened)

  • Property Address: 94 Maybeck Street Road, Novato, CA 94949
  • Listing Price: $842,000

If you would like to learn more about this lovely South Gate, Novato home on the levee or set up an appointment to see it, please call Kyle Frazier, the listing agent, at (415) 350-9440.

Kyle Frazier, CRS
Christie’s Great Estates | Morgan Lane Marin Real Estate

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

October 15, 2009

Entering into the dormancy season for Marin County real estate, it appears that certain “hotspots” remain — Novato is one of them. In September 2009, 35 Novato homes sold, compared with 38 sales in August 2009. The Novato real estate market derives its strength from entry level home sales. The number of homes actively listed in Novato remains very low compared with the rest of Marin (and the percentage of homes in escrow is much higher than the rest of Marin) because of exceptional demand based on affordability and the ongoing fantastically low interest rates.

“Give Yourself a Raise. Move to Novato.”

While the average sales price of Novato homes rose in August to a remarkable $713,440 (based in large part to the makeup of sales), that number fell back to Earth in September — $646,389. Even so, the psychological impact on buyers waiting for bottom to hit has begun to register. Anecdotally, I can attest that many buyers are looking at the inventory of homes in Novato and acknowledging that prices in the lower price bands are level and that it is increasingly difficult to identify “turnkey” homes under $525,000 — $550,000.

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

  • 73% of homes priced under $500,000 (down from 81% last month — due to a flood of 6 homes coming onto market in the last week);
  • 66% of homes between $501,000 and $600,000 (same as last month);
  • 53% of homes between $601,000 and $750,000 (up from 48%);
  • 34% of homes between $751,000 and $1 million (up from 27%);
  • 31% of homes between $1 million and $1.5 million (up from 30%);
  • 0% of homes between $1.5 million and up.
Importantly, and in line with recent months, the move-up price bands are selling as well as the entry level properties:
  • 16 homes priced under $600,000 sold in September 2009
  • 15 homes priced from $601,00 to $1 million sold in September 2009
This trend also coincides with the extraordinary high percentages of homes in escrow. Meanwhile, inventory continues to shrink with just 120 single family homes currently for sale in Novato, CA. Compare this with Mill Valley which has 119 homes actively on the market, yet Mill Valley has about one-quarter the population size of Novato.

Real Estate Market Chart by Altos Research www.altosresearch.com

Novato homes that sold in September 2009 averaged 121 days on market, were about 2,133 sq. ft., and sold for an average sales price of $646,389 (roughly $313 per sq. ft.). Novato’s absorption rate (e.g., the number of months of inventory currently available in Novato) remains extremely low — 3.4 months of available inventory. In March 2009, we had 7.9 months worth of inventory. Generally speaking, 5-6 months of inventory reflects a balanced market and anything under 4 months, a seller’s market. The percentage of homes in escrow also points strongly to an extreme sellers market in the lower price bands.

Homes in Pointe Marin, Country Club, 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 International Real Estate. It is always my pleasure to be of service.

Marin Real Estate (August 2009)

September 10, 2009

Marin real estate has, it appears, survived the worst of the downturn. While prices are down across the board no matter how you slice it, the road to recovery is in view. Yet, virtually every call I get from potential buyers, at some point in the conversation, eventually turns to short sales and foreclosures — distressed sales remain featured on many buyers’ dance cards. In fact, distressed sales are very competitive and often receive multiple offers. In Northern Marin (a.k.a Novato), 82% of homes priced under $500,000 are in escrow (that’s 40 out of 49 homes!). In San Rafael, 84% of homes priced at or below $600,000 are in escrow (that’s 32 out of 38!). These sales are propelled by value, the $8,000 tax credit, and the increased FHA loan limits which went into effect in April 2009.

Early in the year, buyers were ALL talking about how they anticipated interest rates would go down to 3% (and some buyers were insisting that rates would go even lower). I would just nod my head and concede that was a possibility. After all, what do I know about the unknowable? But, I always pointed out that whatever rates fell to, you could never know the bottom until it was gone. And that rates would surely go back up again — I was not going out on a limb; every economist on Earth is saying the same thing (most believe this will occur by the end of Q1 2010). Sure enough, it seems buyers are picking up on this inevitability and they are out in droves.

Standing back and looking at the higher price bands (especially in Southern Marin), things look a little different. Some sellers still suffer from pricing strategies that prevent them from realistically engaging with qualified buyers. These sellers are either: 1) NOT Sellers; or 2) are getting poor advice and direction from their agents. They will learn that “time on the market” is not their friend. Being a “smart seller” today means negotiating strong terms aimed towards a successful close of escrow within 30-45 days.
The chart below shows a 90-day rolling average of Mill Valley’s new listings and absorbed listings (e.g., sales), comparing current numbers with those of last year. Note that the while the numbers for new listings are about the same, the number of absorbed listings is about equal to 2008. If you would like to review a similar chart for any other town or city in Marin or San Francisco, please let me know.
[Click HERE for the rest of the article, courtesy of www.NorthBayRE.com.]

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

August 12, 2009

Last month, for the first time since I began writing Novato monthly updates back in 2006, I stated that it appears that the Novato, CA. market (for single family homes) seems to be improving in two meaningful ways. Certainly, sales have risen from last year and we have several months of increasing sales (as the inventory of short sales and foreclosures is quickly snapped up by motivated buyers).

But, perhaps even more importantly from the perspective of home owners, it also appears that prices at the entry level (e.g., properties priced below $500,000) have bottomed out. As evidenced by the chart below, the 90-day rolling average of Novato home prices has been rising since May 2009. Obviously, higher asking prices do not, ipso facto, result in higher sales prices (some local real estate companies train their agents to give sellers high estimated sales prices in an effort to get any all listings — a major breach of our ethical and fiduciary obligations, in my opinion). But, experts consider this development a leading indicator that market forces are pushing prices higher. I have written in past months about the high level of competition in Novato’s entry level real estate market. This phenomenon also supports the notion that we have hit bottom.

In July 2009, Novato experienced 47 sales (up from 38 in June 2009). Of course, many of these are bargain priced homes such as REO’s or short sales. But, the inventory is rapidly being absorbed. We feel there is extraordinary pent up demand. Perhaps more significantly, the average sales price of Novato homes was $632,078 in July 2009 (up from $622,000 last month, excluding one off the market sale of a $2 million+ home). While a bump of just over 1% may not seem like much, its psychological impact on buyers waiting for bottom may prove significant.

As a result of the above, we believe that the move-up market will continue to improve in Novato — there are clear signs of improvement in this very important market segment. As of today, here are the percentages of homes in escrow in each price band:

  • 82% of homes priced under $500,000 (up from 78%);
  • 61% of homes between $501,000 and $600,000 (up from 57%);
  • 40% of homes between $601,000 and $750,000 (down from 43%);
  • 27% of homes between $751,000 and $1 million (up from 25%);
  • 30% of homes between $1 million and $1.5 million (up from 25%);
  • 6% of homes between $1.5 million and up (down from 15%).

Interestingly, and in line with recent months, the move-up price bands are selling nearly as well as the entry level properties:

  • 27 homes priced under $600,000 sold in July 2009
  • 16 homes priced from $601,00 to $1 million sold in July 2009

There are 138 single family homes currently for sale in Novato, CA (there were 131 in July 2009). Novato’s absorption rate (e.g., the number of months of inventory currently available in Novato) remains extremely low. In March 2009, we had 7.9 months worth of inventory. This month, our absorption rate has fallen to an unbelievable 2.99 months! Absorption rates, along with days on market averages, provide a telling insight into the overall state of the market. Generally speaking, 6 months of inventory reflects a balanced market and anything under 4 months, a seller’s market. And today’s shrinking inventory and exploding sales evidence a pent up demand and reflect the increased affordability of Novato real estate. It is rumored that more bank owned inventory will be generated in the Fall as banks continue hiring processors and moratoriums are lifted. We will see if this comes to pass and how it affects our market.

Real Estate Market Chart by Altos Research www.altosresearch.com

As noted above, 47 Novato homes sold in July 2009. These Novato homes averaged about 110 days on market, were about 2,107 sq. ft., and sold for an average sales price of $632,078 (roughly $304 per sq. ft.). Homes in Pointe Marin, Country Club, Hamilton Field, Rush Creek, and Bel Marin Keys generated the most calls and showings this past month. If you are thinking of buying, please call my office at (415) 350-9440 as I have a long list of people who would like to sell their homes, but because of market conditions are not quite ready to list their home officially. I am also receiving many calls regarding lease-options.

Below is a breakdown of the Novato real estate market by price band:

Price Range

Total Homes

Pending Listings

Up to $500K

49

82%

$500K – $600K 36 61%

$600K – $750K

47

40%

$750K – $1 mil.

62

27%

$1 mil. – $1.5 mil.

37

30%

$1.5 mil. & Up

18

6%

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 neighborhoods, just give me a call at (415) 350-9440. My name is Kyle Frazier. I am a Broker, Certified Residential Specialist (CRS), and Member of The Institute of Luxury Home Marketing, with Morgan Lane Marin Real Estate. It is always my pleasure to be of service.

Now that the the HWY 101 widening project has been completed on both north and southbound lanes, the commute through San Rafael is very much improved. Southbound commute traffic is reduced by about 25 minutes. The improved commute will certainly make Novato a preferable choice for those who want more house for the money, yet were scared off the traffic we experienced during the highway construction period. Moreover, the first-time home buyer credit of $8,000 (this is a flat out gift from the government) certainly helps those who qualify. As I tell my clients, “Give Yourself a Raise. Move to Novato.”

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

July 17, 2009

The Novato single family home market seems to be forming a bottom. Prices appear to be leveling out and the percentages of entry level homes in escrow are very high. I know that many foreclosure sales and short sales are getting multiple offers. I have several clients who have faced as many 9 to 20 offers in competition for a single family home. This activity bodes well for sales in the higher price bands.

Moreover, in June 2009, Novato had 38 sales (up from 32 in June 2008). Indeed, this reflects an upward trend over the past few months—May 2009 had 44 sales. Of course, many of these are bargain priced homes such as REO’s or short sales. But, nonetheless, the inventory is rapidly being absorbed as there is extraordinary pent up demand.

Perhaps more significantly, the average sales price of Novato homes jumped up to $666,124 in June 2009. This is an increase from $564,770 in May 2009. While there was one $2 million plus sale (an off market sale), which supported this increase in average sales price, even stripping that outlier sale from the equation, the revised average sales price was over $622,000—a strong bump upwards.

We believe that the move up market has begun to find its legs in Novato and that there are definite signs of improvement in this very important market segment. Interestingly, and in line with recent months, the move-up price bands are selling as well as the entry level price bands:

  • 17 homes priced under $600,000 sold in June 2009
  • 17 homes priced from $601,00 to $1 million sold in June 2009.

As of today, here are the percentages of homes in escrow in each price band:

  • 78% of homes priced under $500,000;
  • 57% of homes between $501,000 and $600,000;
  • 43% of homes between $601,000 and $750,000;
  • 25% of homes between $751,000 and $1 million;
  • 25% of homes between $1 million and $1.5 million;
  • 15% of homes between $1.5 million and up.

There are 131 single family homes currently for sale in Novato, CA (there were 141 in June 2009). Novato’s absorption rate (e.g., the number of months of inventory currently available in Novato) remains extremely low. In March, we had 7.9 months worth of inventory. Last month, the absorption rate fell to an unbelievable 3.04 months. Today, while up a bit to 3.45 months, it remains very low! Absorption rates, along with days on market averages, provide a telling insight into the overall state of the market. And today’s shrinking inventory and exploding sales evidence a pent up demand and reflect the increased affordability of Novato real estate. Also, note below that the 90-day rolling average of Novato home prices has jumped up — I consider this an additional leading indicator that market forces are establishing a bottom.

Real Estate Market Chart by Altos Research www.altosresearch.com

As noted above, thirty-eight Novato homes sold in June 2009 (down from 44 in May 2009). These Novato homes averaged about 148 days on market, were about 2,128 sq. ft., and sold for an average sales price of $666,124 (roughly $316 per sq. ft.). Homes in Pointe Marin, Country Club, Hamilton Field, Rush Creek, and Bel Marin Keys generated the most calls and showings this past month. If you are thinking of buying, please call my office at (415) 350-9440 as I have a long list of people who would like to sell their homes, but because of market conditions are not quite ready to list their home officially. I am also receiving many calls regarding lease-options.

Below is a breakdown of the Novato real estate market by price band:

Price Range

Total Homes

Pending Listings

Up to $500K

54

78%

$500K – $600K 35 57%

$600K – $750K

43

44%

$750K – $1 mil.

51

25%

$1 mil. – $1.5 mil.

32

25%

$1.5 mil. & Up

20

15%

For an 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 for your neck of the woods or have any questions about Novato’s many delightful neighborhoods, just give me a call at (415) 350-9440. My name is Kyle Frazier, Certified Residential Specialist (CRS), with Morgan Lane Marin Real Estate. It is always my pleasure to be of service.

Now that the the HWY 101 widening project has been completed on both north and southbound lanes, the commute through San Rafael is very much improved. Southbound commute traffic is reduced by about 25 minutes. The improved commute will certainly make Novato a preferable choice for those who want more house for the money, yet were scared off the traffic we experienced during the highway construction period. Moreover, the first-time home buyer credit of $8,000 (this is a flat out gift from the government) certainly helps those who qualify. As I tell my clients, “Give Yourself a Raise. Move to Novato.”

Marin Real Estate (April 2009)

July 10, 2009

March 2009 new escrows up 17% from March 2008 (and 58% from February 2009) – In Marin County our most reliable indicator of changing market conditions is new escrow activity. New escrow activity bottomed out in December 2008 and began a modest ascent through January and February 2009. I believe the sharp increase in new escrows in March 2009 is a combination of demand returning to our market and the cyclical nature of the business. It stands to reason that thought is that April and May closings will rise accordingly.

Another interesting trend is the surge of activity in central and southern Marin. In the first half of 2008, nearly 60% of the units sold were in central and southern Marin. By January 2009, largely a result of the October 2008 stock market meltdown, this activity gradually fell to 37% of the units sold in Marin. In February and March 2009 the percentage rebounded to nearly 50% of the county’s activity.This upbeat trend in central and southern Marin is consistent with the activity in my business and a solid sign of strengthening buyer confidence. We expect a strengthening Spring season in Marin County real estate.

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

Novato CA Real Estate Market Update (June 2009 Home Sales Report)

June 12, 2009

There are 141 single family homes are currently for sale in Novato, CA (there were 152 in May 2009, 152 homes for sale in April 2009, and 142 in March 2009). This consistency is interesting although I don’t think much can be imparted from it. What is significant, however, is Novato’s ever shrinking absorption rate (e.g., the number of months of inventory currently available in Novato). Last month I noted that Novato had enough homes to last about 5 months (this is very low for Marin in today’s market) and much lower that the 7.9 months worth of inventory in March 2009. This month, the absorption rate fell to an unbelievable 3.04 months. That is low. Absorption rates, along with days on market averages, provide a telling insight into the overall state of the market. And today’s shrinking inventory and exploding sales I talk more about this below) evidence a pent up demand and reflect the increased affordability of Novato real estate. It is also noteworthy that the absorption rate calculation does not increased “contingent” properties as sold properties. There are another 78 homes in escrow in Novato that are considered active.


As I have noted before, value properties can be found in virtually ALL price ranges. Pricing in most Novato neighborhoods is back down to what it was in 2002-2003. Novato currently has eight active listings priced under $400,000. In addition, there are 16 homes priced under $500,000 (there were 26 last month). Note that available inventory in these price ranges is way down and the percentages of homes in escrow is rising fast. For example, 72% of homes in Novato priced under $500K are in escrow (up from 63% in May 2009); 48% of homes between $500K and $600K; 52% of homes priced between $600K and $750K; 22% of homes between $750K and $1 million; and 22% of homes priced between $1 million and $1.5 million. These are some strong numbers! If you would like to see just how strong, compare any price range in Novato against homes in other Marin County, CA towns and cities.

Real Estate Market Chart by Altos Research www.altosresearch.com

My prediction relating to phantom buyers (I’ve been talking about this for a year now) has come true. Here it is: there are LOTS of people who sold over the past couple of years and who have waiting for prices to dip. Fortunately for these folks, interest rates, while they are up a point in the past 6 weeks, remain low by historical standards and so buyers are jumping in. Additionally, the first time home buyer credit is helping first time buyers. And finally, I think people are beginning to realize that inflation is coming (along with significantly higher mortgage interest rates). I’ll bet that this time next year, rates will be at least another point higher (somewhere around 6.5%) and seller financing will be gaining popularity.

Forty-four Novato homes sold in May 2009 (up 43% from April 2009, which saw just 25 sales). These Novato homes averaged about 1496 days on market, were about 1,956 sq. ft., and sold for an average sales price of $564,000 (roughly $299 per sq. ft.). Homes in Pointe Marin, Country Club, Hamilton Field, Rush Creek, and Bel Marin Keys generated the most calls and showings this past month. If you are thinking of buying, please call my office at (415) 350-9440 as I have a long list of people who would like to sell their homes, but because of market conditions are not quite ready to list their home officially. I am also receiving many call regarding lease-options.
 
Below is a breakdown of the Novato real estate market by price band:

Price Range

Total Homes

Pending Listings

Up to $500K

60

72%

$500K – $600K 31 48%

$600K – $750K

52

52%

$750K – $1 mil.

50

22%

$1 mil. – $1.5 mil.

32

22%

$1.5 mil. & Up

22

9%

 

For an 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 for your neck of the woods or have any questions about Novato’s many delightful neighborhoods, just give me a call at (415) 350-9440. My name is Kyle Frazier, Certified Residential Specialist (CRS), with Morgan Lane Marin Real Estate. It is always my pleasure to be of service.

Now that the the HWY 101 widening project has been completed on both north and southbound lanes, the commute through San Rafael is very much improved. Southbound commute traffic is reduced by about 25 minutes. The improved commute will certainly make Novato a viable choice for those who had sworn it off because of the traffic. Moreover, the first-time home buyer credit of $8,000 (this is a flat out gift from the government) certainly helps those who qualify. As I tell my clients, “Give Yourself a Raise. Move to Novato.”

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