I was reading a report from my broker Steve Dickason that was quite interesting. According to the National Association of Realtors, real estate is predicted to remain stable this summer. Gains in the West and South were offset by declines in the Northeast. The Midwest remains steady.

Very affordable interest rates and stabilizing home prices are encouraging buyers to act. According to Freddie Mac, a 30-year conventional fixed-rate mortgage fell to 4.89% in May from 5.1% in April and of course with rates so low how could you not tell the fence sittes that now is the time to take advantage of these great loans and decreased property prices.

Total housing inventory fell 3.4% by June, which represents an 8.3 month supply. Lawrence Yun, Chief Economist for the NAR, reports that home sales for the second half of 2010 will remain on an upward curve. He attributes this to continued sales and price performance. Yun also reports that "we are witnessing the ongoing effects of the home buyer tax credit."

Marin County Market Update...Is This the Best Move-up Market Ever?

It may be! Supply/Demand factors and interest rates are combining to open a window of opportunity for those selling in the lower price ranges and buying up.

The chart below shows the number of listings available for sale and the number that went into contract (pending) during the month of June. Dividing the number of sales by the number of listings gives you the percentage of homes pending. This number is a good indicator of whether the supply/demand climate is favoring buyers or favoring sellers in  price negotiations.  

For example, if you sold a home in the $0-$500,000 range, you would be selling in a "Slight Seller's Market" according to an industry rule-of-thumb. If you then bought in the $500,000 - $1,000,000 range, you'd be buying in a "Balanced Market" or if you stretched into the $1,000,000-$2,000,000 range, you'd be in a "Strong Buyer's Market."

If you sold a home in the $500,000 - $1,000,000 range you'd be selling in a "Balanced" market. If you then bought up you'd be buying in a "Strong to Extreme Buyer's Market" depending on how much you trade up.

Now, combine the supply/demand advantage with today's low interest rates and you have the "Perfect Storm" for a Buy-up.

Want to see what our in-house lender, Private Mortgage Advisors, rate's are today? See the chart below:

Can you believe a 5 year fixed rate loan of $3,000,000 for 4.375% with no points? I can't recall ever seeing jumbo rates this low. Or, how about a conforming 30 year fixed loan between $417,000 and $729,750 for only 4.75% with no points?

If you'd like to discuss the possibility of a move-up purchase, I'm obviously excited about the opportunities and would love to discuss them with you. Email or call me any time at (415) 599-5028.