It's what everyone wants to know: what will prices be for the new condos at The Millworks in Novato?

While prices aren't set to be released until closer to when pre-sales start in April (possibly about one month from now), we would like to talk to you about the Novato housing market. It's helpful to be as informed as possible when you tour the new homes with us next month. Visit NovatoMillworks.com to get the latest information.

Right now, and for the last several months, the $500,000 and below market has been very active. In fact, if you judge by the percentage of condos in escrow, it's a seller's market. Last week, 47% of condos were in escrow in Novato. (The general rule of thumb is 25% and below is a buyer's market, 25%-40% is a neutral market, and 40% and above is a seller's market).

That said, buyers still have a lot of power right now.  There are a lot of homes for sale, so the competition among sellers is stiff. Foreclosures are driving down the price per square foot, so buyers are ever-expecting to get more house for the money.

A home's value is determined by the most recent sale prices of nearby, similar homes (the "comps" or comparables). With The Millworks condos, there are no obvious comps. That's because there's nothing like it in downtown Novato, let alone the rest of the city.  Right now, there is only one condo for sale within a half mile of The Millworks. It's a 2-bedroom unit on South Novato Blvd. listed for $365,000. Built in 1997. It's been on the market 73 days. 

Perhaps the closest comparison are the townhomes at Atherton Ranch, a development built in 2004 near Trader Joe's, at the other end of downtown. A 3-bedroom, 2.5 bath townhome sold last November for $525,000. Another is in escrow right now, probably for somewhere around the $510,000 asking price. These have their own attached garages and some have small yards. However, the location is arguably inferior and there are fewer amenities.

The Millworks has a lot going for it: brand new construction, luxury finishes, lots of amenities, security, unique location, "park and forget it" lifestyle, close to Whole Foods, restaurants and the freeway.  In any other housing market, I'd expect these to sell at a premium. But because of the economic crisis, the climate for builders is not good, and they know it. They must be particularly motivated to move these homes.

As a buyer, this is good news for you. Plus, the state of California will give you a $10,000 tax credit (true dollar for dollar credit) when you buy a new, never-lived-in home between now and March 2010 (first come first served, and there is a limited budget for this program).

So, what is a 1, 2 or 3 bedroom home in The Millworks worth to you? Feel free to comment below!