Marin County Real Estate Market Report July 2019 | Trends & Market News

The June Marin real estate market numbers are in and we continue to see higher inventory and flattening prices compared to last year at the same time. The number of homes on the market was up 32% compared to June 2018 while median pricing was down about 3%. 

Buyers are enjoying the higher inventories and lower competition that summer brings. While we are seeing competitive bidding on some homes that appeal to a broad buyer pool, we are seeing more and more price reductions throughout Marin. I was pleased to help my buyers win in a competitive bidding situation and they are now in escrow for a beautiful home in Novato!

I have some spectacular homes for sale — both currently available and coming soon.  Please click here to see all my featured listings.

Q2 Bay Area Real Estate Market Update

Golden Gate Sotheby’s International Realty has just published their Q2 Bay Area Real Estate Market update and I thought it would be useful to include some of the key commentary below. Keep in mind that the commentary is about the Bay Area market in general, including Silicon Valley where sales are still quite robust with low inventories. The Marin market benefits from the tech sector, but because relatively few tech companies call Marin home, not to the same extent as our neighbors to the south.

Here are selected excerpts from the report:

Tech Drives Job Growth

The Bay Area economy expanded at a robust pace through the spring, even as uncertainty weighed on the national and global economic outlook. REgional employment increased by nearly 100,000, or 2.4% between May 2018 and May 2019, the most recently-available data. Hiring at tech-related firms continued to drive the largest share of growth, and job gains in the professional and business services and information services sector accounted for more than 40% of job gains. Hiring in the construction sector also accelerated in 2019 after stalling in 2018. Sector employment increased by more than 12,0000 year-over-year, an indicator of rising momentum in local real estate development. 

Many Homeowners Stay Put

Entering the second half of 2019, demand for Bay Area homes remains strong, even as transaction volume remains constrained by the decision of many homeowners to stay in their current home. As homeowners stay in their homes longer, either by choice or necessity, opportunities for others to upgrade or buy into the market dwindle. The pace of regional sales the past decade never really fully recovered to the level of previous cycles, and in fact largely plateaued following an initial rebound from the Great Recession in 2011 and 2012. In the first half of 2019, sales volume equated to less than 2% of all single family homes in the Bay Area, well less than normal and an indication of impeded sales activity.

Differences in mobility across homeowners have likely contributed to the divergence in trends between sales at the lower and upper end of the home market as pricing as reached new heights. Higher-income homeowners, and luxury homeowners in particular, often have greater flexibility in choosing when and where to relocated, but lower-income homeowners, particularly those who have been in their current home for many years, often have little to no ability to relocate within the region, and are much more sensitive to changes in pricing and financing costs.

Looking Ahead (Total Bay Area)

As we look forward to the summer selling season, we expect inventory to remain historically tight, with sales activity still limited by the fundamental affordability and mobility challenges faced by existing and potential homeowners. Transaction trends in the most desirable and expensive neighborhoods, which have been most insulated from the broader slowdown in sales, should remain relatively robust, while sales volume at lower price points should stabilize near current levels. 

Furthermore, buyer demand should continue to support pricing at or near current levels, especially if inventory persists at these low levels and buyer choice remains limited.

Mortgage Interest Rates Rebound After Hitting 21-Month Lows

Last month I reported that mortgage rates were hovering around 21-month lows with one client obtaining a mortgage at 3.5% on a jumbo with negative 0.125 of a point — a phenomenal deal. Rates have now increased to 4% on that same jumbo, with a charge of 0.125 point instead of a credit at closing.

New Real Estate Market Reports by Town

I am also excited to announce that my website now has new real estate market reports by town with more coming soon. Please check these out:

Belvedere Real Estate Market Report

Corte Madera Real Estate Market Report

Fairfax Real Estate Market Report

Kentfield Real Estate Market Report

Larkspur Real Estate Market Report

Mill Valley Real Estate Market Report

Novato Real Estate Market Report

San Anselmo Real Estate Market Report

San Rafael Real Estate Market Report

Tiburon Real Estate Market Report

These are all accessible from the “Market Reports” menu item here on my website at any time.

Let’s Talk!

These monthly Marin County real estate market reports are a great place to start as you learn more about the market. Let’s continue the conversation — I am always happy to discuss the market, and the best way to approach it whether you are a buyer or a seller.

Interestingly, I have had several sellers talk to me this spring about selling next spring. That is very, very smart — it gives them the dry summer months to prepare their homes for sale next spring. I cannot tell you how many times I have walked into a newly remodeled home where the seller did not consult with me and thought to myself “If only they had chosen a different paint color…”

To those who read this report, thank you for all your support of my business. I couldn’t do it without you. Call or text me at 415-847-5584 anytime. Let’s talk real estate!