Real estate activity is very fluid. In only a few months’ time, a town can change from being a “buyer’s market” to a “seller’s market.” It depends on supply and demand and price point.  Interestingly, the third quarter mirrors the first quarter, not the second quarter. There are six towns that are considered a “neutral” market (a balance of supply and demand) and five town that are considered a buyer’s market (more homes for sale than buyers, a benefit to buyers). The other two towns in Marin are considered a “seller’s market” (more buyers than homes on the market, a benefit to sellers.)

By price point, not much has changed since the beginning of this year. The low end of the market place remains in a seller’s or neutral market, and the high end of the market ($1.5 million and above) remains in a buyer’s market.

Below are two charts that provide an overview of the market conditions for the past three months. For example, the market is in the buyers’ favor if they are looking in the $1.5 – $2 million dollar range. However, if they’re looking in Greenbrae, they’re looking in a seller’s market since demand is very high there right now. It is also interesting to note that typically the more days on market, the lower the selling price. The towns that are in a seller’s market have a much closer listing price and selling price.

Opportunities abound in real estate right now (low prices, low interest rates) but a variety of factors come into play when you’re deciding where to buy or when to sell. I strongly recommend that a seller or a buyer carefully review the sales of homes by price point and town in order to negotiate the best price possible given the market conditions.

No Comments

Real estate activity has been busy this summer with more homes coming on the market than listed in the spring time. In April there were 1215 homes for sale compared to July with 1572 homes on the market (a 30% increase.) Roughly 30% of the homes are in contract, indicating a balanced or “neutral” market. In neutral markets, typically, interest rates are affordable and the number of buyers and sellers in the marketplace are equalized. The scales don’t tip in either direction, meaning the market is normal without experiencing volatile swings.

Agents have seen an increase in multiple offers and all-cash buyers this summer. When homes are priced competitively or below market value, they sell very quickly, often with multiple offers. If they’re not priced well, they tend to sit on the market for quite some time. However, selling real estate still depends on location, condition of house and price.

Many of my clients ask me, “Have we hit the bottom?” Robert Shiller, MacroMarkets’ chief economist and co-founder, recently said, “A significant majority of our panelists believe that the bottom for home prices arrived in the first quarter or will arrive sometime before year-end. Despite persistent macroeconomic uncertainty and unprecedented housing market dysfunction, almost two-thirds of the panelists see the U.S. residential real estate market as at an historic turning point.”

Although no one can predict the bottom, real estate has picked up significantly this summer which gives us all hope that real estate is improving.

No Comments

No Comments

San Rafael leads with the highest number of sales in the first quarter of 2011, and Kentfield beats Belvedere’s average sale price. It is important to keep in mind that these are average numbers and that within each town the average price per square foot will vary considerably depending on location, condition of the house and seller motivation.

No Comments

 At the end of the first quarter this year, a more balanced real estate market overall exists with 33% of the homes on the market in contract. This balanced market is very evident by town sales although by price point, we are seeing more of a buyer’s market. A balanced or “neutral market” means that there is a relatively equal number of buyers and sellers. Typically a neutral market is represented by 25 – 40% of homes in contract. When it is a “seller’s market,” there are more buyers than sellers in the marketpace or there is a greater demand than supply. Statistically, it means that more than 40% homes are in contract. A “buyer’s market” indicates that there are more sellers than buyers and less than 25% homes are in contract, making it a good time to buy.

It’s valuable that sellers and buyers clearly understand the market in terms of price and location. The charts below summarize today’s market conditions.

By Price Point

If you have any questions about this information, please don’t hesitate in contacting me today at ahyde@fhallen.com or 415-464-2423. 

Source: BAREIS as of 3/31/2011

No Comments