Welcome to my February 2018 Marin County Real Estate Market Report! You will notice something very different in the charts this month. Each month we see green arrows on the pricing chart, indicating price increases from the prior month, and we see red arrows on the inventory chart, reflecting tighter and tighter inventory in the Marin County real estate market. However this month we see prices have declined from the prior month and inventories are up.

So what gives? Is this a market shift? I would venture no. Remember that December is a very slow time for real estate, so the relatively small number of transactions can distort the data as we compare January to December. In addition, we see that pricing is up versus the same month in 2017, so we are still seeing strong year-on-year appreciation. It is a picture that illustrates why some savvy buyers take advantage of winter to purchase a home.

The spring-like weather, though it is still winter, seems to have awakened buyers and sellers. I have several exciting listings coming up, and we are seeing homes beginning to come on the market. I am working with several buyers right now who are looking to diversify their investments by increasing exposure to real estate and decreasing exposure to the stock market.

Will Stock Market Volatility Impact the Housing Market?

If you normally scroll past the Wells Fargo national market update below, I would encourage you to read it this month. Wells Fargo contends that stock market volatility could be good for the housing market because it was triggered by good economic news that resulted in interest rates moving up and stocks moving down. I am not an economist so I won’t analyze their opinion, but I have seen people want to “park” cash in real estate when the stock market is volatile because they want to own a tangible asset, not a “piece of paper,” meaning a stock. This could be good for the market as long as buyers’ down payments are not negatively impacted by the stock market.

It remains to be seen if the recent volatility was a blip or a trend. A significant correction would most likely have an impact on the Marin County real estate market as many buyers and sellers are heavily invested in the stock market. It is worth watching. Most observers point to continued job growth in the bay area which should continue to put pressure on housing prices and inventory.

I still am optimistic about the market in 2018 and am starting to think about spring gardening and planting my annual tomato crop. I hope you are enjoying this unusually warm weather we are having.

I am never too busy for your referrals, questions, or if you just want to talk about the Marin County and SF Bay Area real estate market. Please call me at 415-847-5584. Remember, many great conversations begin with a single question.