Inventory expanded solidly in Pacific Union’s Marin County region during the first quarter of 2015, but the extra supply of homes sold quickly – a testament to the pent-up buyer demand throughout the region. Home prices continued to increase throughout the quarter, and virtually all properties that were priced fairly and in desirable neighborhoods received multiple offers. It was not uncommon to see buyers offer all cash and waive contingencies to close a deal quickly.
Mill Valley was a particularly hot market, but sales were strong in all price ranges across the region – particularly for high-end properties. The quarter also saw a significant number of private purchase agreements, reached without homes ever appearing on a local MLS and without competing bids. Such off-market deals can simplify the sales process, but they don’t guarantee the highest possible prices.
Looking Forward: Spring is typically a busy season for real estate, and with a robust regional economy and interest rates still hovering near record lows, the coming months should see exceptional levels of activity in Marin County. Sellers seem to realize that now is an optimal time to put their homes on the market, and buyers will be waiting.
Defining Marin County: Our real estate markets in Marin County include the cities of Belvedere, Corte Madera, Fairfax, Greenbrae, Kentfield, Larkspur, Mill Valley, Novato, Ross, San Anselmo, San Rafael, Sausalito, and Tiburon. Sales data in the charts below includes single-family homes in these communities.
Median Sales Price
The median sales price represents the midpoint in the range of all prices paid. It indicates that half the prices paid were higher than this number, and half were lower. It is not the same measure as “average” sales price.
Months’ Supply of Inventory
The months’ supply of inventory is a measure of how quickly the current supply of homes would be sold at the current sales rate, assuming no more homes came on the market. In general, an MSI below 4 is considered a seller’s market; between 4 and 6 is a balanced market; and above 6 is a buyer’s market.
Average Days on the Market
Average days on the market is a measure that indicates the pace of sales activity. It tracks, on average, the number of days a listing is active until it reaches “pending” status, meaning all contingencies have been removed and both parties are just waiting to close.
Percentage of Properties Under Contract
Percentage of properties under contract is a forward-looking indicator of sales activity. It tracks expected home sales before the paperwork is completed and the sale actually closes.
Sales Price as a Percentage of Original Price
Measuring the sales price as a percentage of the final list price, which may include price reductions from the original list price, determines the success of a seller in receiving the hoped-for sales amount. It also indicates the level of sales activity in a region.