The real estate market in Marin over the summer has been on fire! Pardon the reference to the actual fires that have been so much in evidence. With the coronavirus, people out of work, businesses shuttered and a recession, you would think that activity would slow down and prices drop. But that hasn’t been the case at all. Prices of single family homes have risen 21% from a year ago and condos have gone up 15%.
The average price paid was 2% above the list price.
The Days on Market has gone from 27 to 26 reflecting a fast-moving sales landscape.
The median price of a single family home in Marin has gone from $1,282,500 a year ago to $1,547,000 this quarter (Q3 2020). And the median price of a condo has gone from $630,000 to $725,000.
This is the first time in memory when single family homes in every single sub-market in Marin were up from the same quarter a year ago, between 8 – 40%.
What is causing this skyrocketing price appreciation? Some of the reasons posited in addition to the imbalance between supply and demand that I had cited in my Q2 report are these:
- Ultra low interest rates mean that buyers can borrow more and afford higher-priced properties
- With so many companies in San Francisco allowing their employees to work from home, many are leaving the urban environment with it’s homelessness, drug users, car break-ins, etc for the appeal of Marin’s suburban lifestyles
- With stimulus programs and the Federal Reserve buying debt from the banks, many of the trillians of dollars being pumped into the economy find their way into mortgages or home equity.
Are we in a housing bubble? It certainly seems so. Will the bubble burst? That’s the big question. It’s not likely that prices can sustain an annual 20% plus rate of increase indefinitely. If the bubble doesn’t burst, I would at least expect the rate of increase to slow substantially over the coming quarters.
To how the market is favoring buyers or sellers and to see the median prices of homes in each of Marin's towns, visit my website at www.MarinRealtyExperts/Market_Update. And, if I can be of any assistance to you in buying, selling or leasing property give me a call!
Peter Nielsen, Broker