Pacific Union International | Novato Real Estate Market Update (June 2013 Novato Home Sales Report). A reporter from a large national newspaper asked me to characterize Novato, California’s real estate market last week and I told him that the sales figures in May were simply unbelievable and that is was by far the best month in the best year we have seen since 2005. Indeed, while a whisper of doubt may have permeated past market reports, none remains now — real estate is back. Ongoing suppressed inventory continues to drive prices seemingly straight up. That, coupled with still low interest rates and intense buyer demand are propelling sales prices not seen for 5 years. “Ready, able, and willing” buyers act quickly.
To give an idea of just how strong the market is, consider this: last month in Novato 11 homes sold for $500K or less (another 19 are in escrow). Today there are just 4 homes on the MLS in Novato under $500K. That means the absorption rate (e.g., number of months’ inventory of homes for sale based on last month’s sales totals) for Novato homes under $500K is about 11 days. I normally track absorption in months, not days (a typical, balanced market would reflect about 6 months worth of homes). Nobody has EVER seen an environment like this!
Even the $1 million+ price point has seen significant activity over the past 3 months as affluent buyers are returning to Novato to capture value and lifestyles unobtainable elsewhere in Marin County.