The mood on the street and around town is upbeat. Most Realtors I have spoken with believe that the Marin County real estate market is picking up. Sellers are better educated about current values, and know that they have to price their home for the market if they want to sell. There seems to be plenty of qualified buyers competing for a limited amount of inventory and they've  made it their business to know the market, and refuse to overpay. Lenders are backing them up with strict appraisal guidelines, appraisal reviews, and requests for multiple appraisals so prices have to be real. Interest rates are still excellent. Stock Market and consumer confidence appears to be recovering, and the FEDs holding the line on interest rates last week, with a statement that they intend to continue to do so for an extended period, is more positive information. "Jumbo" loans are oftentimes still difficult to obtain with lots of hoops for buyers to jump, vault, or squeeze themselves through. Well-qualified buyers with good income, credit, assets, and reserves can qualify but the process is time-consuming.  The upper end of the market continues to be sluggish as a result. Cash is still king, with all-cash offers holding a decided edge over buyers who need to obtain loans, particularly on higher-priced homes. 

 

     The City by City Report out this week shows 7 of 13 listed Marin cities and towns with percentages in contracts up, and 6 down. No dramatic moves here. Novato is in first place, gaining since last month and now at 45.8% of the inventory in contract. Novato real estate is still very sensitive to price in spite of this due to continued REO, and short-sale activity. Sausalito is still at the bottom of the heap with only 17.89% of homes in contract, but  significantly better than last month's 10.2% under contract.

 

     Momentum in Year To Date homes sold seems to be slowing with Single Family Residence's still up about 55% from this period from last year at 479 vs. 308. Condo Year To Date homes sold at 143 vs. 130 sales last year at the same time, or up 10%. With the expiration of the Federal tax credit it remains to be seen whether the market is still strong enough (assisted by the California state tax credit) to continue on its upward course.

 

     Signs of strength in the market include the high ratio of accepted offers to new listings in both the Single Family Residences and Condo market, 88.5% and 95.1% respectively. 

     Opportunities abound, particularly in the upper end of the market where qualified buyers continue to get great deals. Good prices and good rates will probably continue for a while, but not forever. Now appears to be a great time to buy. 

The Anlyan Report is provided by Fred Anlyan

A Real Estate Broker for Coldwell Banker in Greenbrae