Yes, our local real estate market has changed, and is likely to continue along its current pathway for the foreseeable future. Simply stated, we are in an ongoing phenomenon of consistently lower inventories of residential housing for sale, coupled with strong and growing demand for housing, and rising prices as a result of the imbalance of supply and demand. One more data point regarding inventories. Through the end of May 2018, total available residential inventory is on par with the end of May 2017, but -45% from the month end May 2012.
Year to date, sales for all of Marin County, of residential real estate are noted below. Details by municipality are noted on the enclosed charts.
One should also note, that the January — May period traditionally represents 36% of annual sales.
Looking at the numbers more carefully, what’s also apparent is the significant shift in the percentage of sales by price category since 2012, and this shift is tracking as the new normal.
What is clear is that sales within the price segments below $2.5m are continuing strong with far more demand than inventory, and sales at price points greater than $2.5m, although positive, the intensity is less. In addition, the sales / inventory mix above $3.0m is more favorable to buyers. Simply put, the sellers are in control in the price categories below $2.5m, and above that price category the market is trending towards being more balanced. Above $3.0m, in general, buyers have more negotiating power.
Another strong trend continues within all price segments, i.e. properties that are updated / remodeled and in turn key condition, are clearly getting the attention and superior prices. Today’s buyers are not interested, nor do they have the time, to take on projects. Sellers are well advised to make the investments in time and dollars to prepare their property for today’s demanding buyers.
As noted above and in the enclosed charts, sales data and trends continue to favor sellers. Hence, if you are considering the marketing and sale of your home in 2018, it is not too late to begin the process. Two thirds of the selling season remains in front of us. Please feel free to contact me, and I’ll be more than happy to come by and provide you with a comprehensive market analysis and home evaluation, coupled with a strategic marketing and sales plan, enabling you to achieve success with the sale of your home in 2018.
Luxury Property Specialist