Novato Real Estate Market Update (January 2011 Novato Home Sales Report)
January 4, 2011
Happy New Year! As I write this real estate report, the stock market is at its highest level since the 2008 meltdown began and up 125 points on the first day of trading in 2011 and the headline on CNN Money is “A Hiring Boom in 2011. Really.” Despite historically low interest rates and overall affordability at its best levels recorded, the overall Marin market was down in terms of sales numbers in 2010. Yet, in December 2010, the Novato, California real estate market continued to show very real strength across all price bands, except for homes priced above $1.5 million. This strength was consistent with the rest of the year’s results.
December 2010 was HOT with 41 home sales. In fact, it was hotter than December 2007 (with 26 sales — Note: click HERE for article dating back to January 2008 “Novato Named “Best Affordable” Town by Business News Magazine”) and December 2008 (35 sales) and about even December 2009 (42 sales). The average sales price of Novato homes in December 2010 was $570,724. These homes averaged 111 days on market, were about 2,078sq. ft., and averaged roughly $283 sq. ft. Novato’s absorption rate (e.g., number of months’ inventory of homes for sale based on last month’s sales totals) sits at 2.4 months’ worth of available inventory overall (99 single family homes are currently for sale in Novato). This is an extraordinarily low number and will rise as sellers begin putting their homes on the market in coming months.
Below are the percentages of homes in escrow in each of Novato’s major price bands:
- 55% of homes priced under $500,000;
- 54% of homes between $501,000 and $600,000;
- 37% of homes between $601,000 and $750,000;
- 19% of homes between $751,000 and $1 million;
- 27% of homes between $1 million and $1.5 million;
- 11% of homes between $1.5 million and up.
Of the homes that sold in December 2010:
- 25 homes were priced under $600,000;
- 15 homes priced from $601,00 to $1 million; and
- 1 home priced from $1 million and up.
Homes in The Landing at Hamilton Field, Breakers at Pointe Marin, Country Club, Rush Creek, and Bel Marin Keys generated the most calls and showings this past month. My new home listing at 10 Audubon Way (in The Landing at Hamilton) closed escrow at the end of the month for $957K (about 3.5% above asking price). 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 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.
The Landing at Hamilton Field had its first sale last month (the sale was consumated upon completion of the home). We have another 4 homes that should be ready for occupancy by the end of January or early February 2011. Pricing starts in the mid-$800,000’s. Please call me at (415) 350-9440 for more information. Or visit our website at www.TheLandingNovato.com
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.
- 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.
- 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
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.”
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.
- 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.
- 16 homes priced under $600,000 sold in September 2009
- 15 homes priced from $601,00 to $1 million sold in September 2009
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.
