Marin Real Estate
Blog Marin Real Estate.com
Marin Real Estate Blog
Marin Real Estate Market Update and Analysis for the week ending May 24, 2010
Marin Real Estate Market Update and Analysis for the week ending May 24, 2010
The number of active listing in the Marin Market has risen each of the last four consecutive weeks. As of last week we are at 1140 active listings in Marin. The number of contingents and pendings remains about the same, near 511. The amount of solds is fluctuating around 60 sales per month but is not going up reflecting the number of acting listings which means that inventory is rising. The percentage of listing in contact has dropped 32.57% to 30.95% in the last 4 weeks. Single family homes under a million 40% are in contract, 1-2 million 21.20% are in contract (which has been increasing each week), 2-4 million is at 17.61% (a decline each week) and 4 million plus is at 5.77% (a large decline from past weeks).
In individual markets San Rafael is seeing an uptick in all price ranges in % in contract. San Anselmo is seeing a down tick in % in escrow across the board in all price ranges. Ross is has only two properties in contract out of 18 properties. Both of these are below 2 million. Kentfield is fluctuating in different ways in different price ranges. Up in the under 2 million but down anything over that. Mill valley is in a slight uptick in percentage in new escrows across the board but for the most part remains steady. Price per square foot is down from last year.
If you have any questions please don’t hesitate to call or if you would like our complete market update please contact us and we will send one out to you.
I’m going to try and post these every other week. Thanks for tuning in.
City by city break down of Marin real estate, or home statistics as of 3/29/2010
Here is a general and city by city break down of Marin real estate statistics as of 3/29/2010. Please let us know if you have any questions or we can help you in anyway Just click the link below. Thanks!
Marin Real Estate update
Marin Real Estate update
Recent Marin Real Estate Market Real Estate Stats
- New Listings and New Escrows in Marin County – activity up 100% since Jan 1, 2010
- $1 million and up New Listings and New Escrows in Marin County - activity up over 100% since Jan 1, 2010
- Central and Southern Marin New Listings and New Escrows - activity up over 100% since Jan 1, 2010
- $1 million and up Central and Southern Marin New Listings and New Escrows - activity up over 100% since Jan 1, 2010
- San Rafael and Novato New Listings and New Escrows – new escrows up over 100%, new listings up over 50% since Jan 1, 2010
Marin Real Estate or Home Market Statistics for All Marin Cities
Here is this weeks, (1/31/10) Marin Real Estate or Home Market Stats for All Marin Cities.
Ferdal Reserve Meeting, how will it affect Marin Real Estate Interest Rates
How does this effect interest rates?
Something to consider is that as bond prices rise, interest rates fall. As bond prices fall, interest rates rise including large movements in the Stock Market. This concept is simple if you think in terms of where money comes from. Investors have basically 2 places to put their money; in the stock market or the bond market. Since money is a finite resource, if people are buying stocks, they typically have to pull that money out of the bond market and vice versa, thus they typically move opposite of each other. In October the fed will continue to buy mortgage back securities but discontinue to buy treasury bonds. This might drive up interest rates, however the fed has a very strong interest in keeping interest rates low, as the housing and real estate sector are at the heart of our crisis. Read on from articles from NPR and the New York Times-
NPR
By Laura Conaway
The Federal Reserve today announced that it will wind up its planned $300 billion program for buying government debt from financial institutions by the end of October, since the economy is "leveling off." The Fed has bought $253 billion worth of U.S. Treasury bonds from banks in an effort to get more money moving through the economy. If banks are holding cash instead of Treasurys, the thinking goes, they'll be more likely to lend to people and businesses.
The Fed also announced it will not be raising its key interest rate, the federal funds rate. This target rate is the amount the Federal Reserve hopes banks will charge for overnight loans to other banks. The decisions come after a two-day meeting by the Federal Open Market Committee, which sets monetary policy and works to carry it out.
The Federal Reserve lowered the rate on Dec. 16, 2008, by a range -- of .75 to 1 percent -- to a record-low of zero to .25 percent.
Since then the economy has begun to show signs of turning around. Unemployment dipped by .1 to 9.4 percent in July, exports are on the increase and gross domestic product was shrinking more slowly last quarter than the quarter before.
With such a low target rate, the Federal Reserve risks creating inflation when the economy gets going again. The Fed began buying Treasurys from banks to lower the interest rate and increase the supply of cash. The Fed has bought so many government bonds that it has tripled its assets to $2 trillion in the last year. Recently, the Federal Reserve Bank of New York has reportedly been doubling its staff of traders to help manage its ballooning portfolio.
If the economy does recover, demand will increase and producers may start raising prices; a surplus of cash could fuel an uncomfortable level of inflation. Some economists, including Allan Meltzer, have urged the Fed to raise the rate soon.
So far, wages and most prices have stayed relatively flat. Last month, Fed Chairman Ben Bernanke told Congress that he belives the rate will need to stay low for "an extended period. Bernanke added, "[W]e also believe that it is important to assure the public and the markets that the extraordinary policy measures we have taken in response to the financial crisis and the recession can be withdrawn in a smooth and timely manner as needed, thereby avoiding the risk that policy stimulus could lead to a future rise in inflation."
Today's statement, by Bernanke and the other Federal Open Market Committee members, says the Fed "expects that inflation will remain subdued for some time."
New York Times -
WASHINGTON — Almost exactly two years after it embarked on the biggest financial rescue in American history, the Federal Reserve acknowledged on Wednesday that the economy was pulling out of its downward spiral and announced a step back toward normal policy.
Though the central bank stopped well short of declaring victory, policy makers issued their most optimistic assessment in more than a year by noting signs of stabilization in household spending, financial markets and inventory building by corporations.
“Economic activity is leveling out,” the Fed board said Wednesday after a two-day meeting.
In the statement, the Fed also said that “the committee expects that inflation will remain subdued for some time.”
The central bank cautioned, however, that the recovery would slow and that unemployment would probably remain high for the next year,and it reiterated that it would keep its benchmark short-term interest rate at virtually zero for an extended period.
But it also announced that it would wrap up its program to buy $300 billion worth of Treasury bonds by the end of October. The program was one of several tools invoked to drive down long-term interest rates and indirectly reduce the cost of home mortgages and corporate borrowing.
The move signaled that policy makers were confident enough to remove one of their emergency props for the financial markets. In its statement, the central bank acknowledged that conditions in both the stock market and the credit markets had improved in the last several months.
At the same time, Fed officials made it clear they were not about to throttle back their biggest emergency credit programs. The central bank is barely halfway through its plan to buy $1.25 trillion in mortgage-backed securities, a program that directly affects home mortgage rates and has had a much more noticeable effect than the Treasury bond program.
Analysts said the Federal Reserve had entered a wait-and-see period, continuing to supply the economy with cheap money but not expanding or extending the emergency programs beyond what policy makers had already been announced.
Despite growing confidence that the worst of the crisis is behind them, Fed officials made it clear they were still more worried about rising unemployment than a resurgence of inflation.
The government’s preliminary estimates show that the economy’s downturn slowed sharply in recent months, contracting only 1 percent in the second quarter compared with 6.4 percent in the first. The rate of job losses has slowed sharply as well, though the nation still lost 247,000 jobs in July.
But the most recent forecasts by Fed policy makers anticipate that the economy will begin an unusually slow recovery in the second half of this year and only gradually pick up speed in 2010. Even if all goes according to plan, the Fed forecast envisions that unemployment will climb from its already high level of 9.4 percent and average as much as 9.8 percent through the end of 2010.
“The balance of risks is still tilted toward weakness in growth and employment, and not toward higher inflation,” said William C. Dudley, president of the Federal Reserve Bank of New York in a speech on July 29. Mr. Dudley said it was “premature to talk about ‘when’ we are going to exit from this period of unusual policy accommodation.”
Rising productivity rates in the United States are giving the Fed more maneuvering room. The productivity of workers, the amount produced per hour of work, shot up at an annual rate of more than 6 percent in the second quarter and has been climbing throughout the recession.
That is unusual for an economic downturn, but it means that wages have more room to climb before employers start to raise prices for their goods and services.
The Fed’s decision to end its program of buying Treasury bonds appears to reflect both practical and philosophical concerns among some policy makers.
According to minutes of the Fed’s previous policy meeting in June, some policy makers worried that the central bank’s heavy purchases of new Treasury debt would be seen by investors as simply financing the federal government’s huge deficits. That, they feared, would erode the Fed’s credibility and heighten inflation expectations.
“Some of those who are less disposed to additional Treasury purchases worry about the perception in the markets that they are motivated by a desire to help the Treasury finance a mountain of debt,” Laurence H. Meyer, chief economist at Macroeconomic Advisers, and a former Fed governor, wrote in a note to clients last week.
By contrast, Mr. Meyer said, most policy makers seem to agree that the mortgage-security program strikes at the heart of the economy’s biggest problem — the housing market.
On a practical level, analysts said, the Treasury-buying program never packed as much punch in the markets.
At $300 billion, the Treasury purchases are only one-quarter as big as the mortgage program, and they have equaled only about one-third of the new issuance of Treasury securities, according to Ira Jersey, an interest-rate analyst at Royal Bank of Canada Capital Markets. By contrast, the Fed purchases of government-guaranteed mortgage securities equaled more than 100 percent of new issuance in that market.
Though mortgage rates have edged up in recent weeks, along with other long-term interest rates, the spread between mortgage rates and risk-free Treasury rates has narrowed by almost half since last November.
“The program to buy Treasuries wasn’t as effective as some of the other programs, like the mortgage-security program, so ending it made sense,” Mr. Jersey said.
Something to consider is that as bond prices rise, interest rates fall. As bond prices fall, interest rates rise including large movements in the Stock Market. This concept is simple if you think in terms of where money comes from. Investors have basically 2 places to put their money; in the stock market or the bond market. Since money is a finite resource, if people are buying stocks, they typically have to pull that money out of the bond market and vice versa, thus they typically move opposite of each other. In October the fed will continue to buy mortgage back securities but discontinue to buy treasury bonds. This might drive up interest rates, however the fed has a very strong interest in keeping interest rates low, as the housing and real estate sector are at the heart of our crisis. Read on from articles from NPR and the New York Times-
NPR
By Laura Conaway
The Federal Reserve today announced that it will wind up its planned $300 billion program for buying government debt from financial institutions by the end of October, since the economy is "leveling off." The Fed has bought $253 billion worth of U.S. Treasury bonds from banks in an effort to get more money moving through the economy. If banks are holding cash instead of Treasurys, the thinking goes, they'll be more likely to lend to people and businesses.
The Fed also announced it will not be raising its key interest rate, the federal funds rate. This target rate is the amount the Federal Reserve hopes banks will charge for overnight loans to other banks. The decisions come after a two-day meeting by the Federal Open Market Committee, which sets monetary policy and works to carry it out.
The Federal Reserve lowered the rate on Dec. 16, 2008, by a range -- of .75 to 1 percent -- to a record-low of zero to .25 percent.
Since then the economy has begun to show signs of turning around. Unemployment dipped by .1 to 9.4 percent in July, exports are on the increase and gross domestic product was shrinking more slowly last quarter than the quarter before.
With such a low target rate, the Federal Reserve risks creating inflation when the economy gets going again. The Fed began buying Treasurys from banks to lower the interest rate and increase the supply of cash. The Fed has bought so many government bonds that it has tripled its assets to $2 trillion in the last year. Recently, the Federal Reserve Bank of New York has reportedly been doubling its staff of traders to help manage its ballooning portfolio.
If the economy does recover, demand will increase and producers may start raising prices; a surplus of cash could fuel an uncomfortable level of inflation. Some economists, including Allan Meltzer, have urged the Fed to raise the rate soon.
So far, wages and most prices have stayed relatively flat. Last month, Fed Chairman Ben Bernanke told Congress that he belives the rate will need to stay low for "an extended period. Bernanke added, "[W]e also believe that it is important to assure the public and the markets that the extraordinary policy measures we have taken in response to the financial crisis and the recession can be withdrawn in a smooth and timely manner as needed, thereby avoiding the risk that policy stimulus could lead to a future rise in inflation."
Today's statement, by Bernanke and the other Federal Open Market Committee members, says the Fed "expects that inflation will remain subdued for some time."
New York Times -
WASHINGTON — Almost exactly two years after it embarked on the biggest financial rescue in American history, the Federal Reserve acknowledged on Wednesday that the economy was pulling out of its downward spiral and announced a step back toward normal policy.
Though the central bank stopped well short of declaring victory, policy makers issued their most optimistic assessment in more than a year by noting signs of stabilization in household spending, financial markets and inventory building by corporations.
“Economic activity is leveling out,” the Fed board said Wednesday after a two-day meeting.
In the statement, the Fed also said that “the committee expects that inflation will remain subdued for some time.”
The central bank cautioned, however, that the recovery would slow and that unemployment would probably remain high for the next year,and it reiterated that it would keep its benchmark short-term interest rate at virtually zero for an extended period.
But it also announced that it would wrap up its program to buy $300 billion worth of Treasury bonds by the end of October. The program was one of several tools invoked to drive down long-term interest rates and indirectly reduce the cost of home mortgages and corporate borrowing.
The move signaled that policy makers were confident enough to remove one of their emergency props for the financial markets. In its statement, the central bank acknowledged that conditions in both the stock market and the credit markets had improved in the last several months.
At the same time, Fed officials made it clear they were not about to throttle back their biggest emergency credit programs. The central bank is barely halfway through its plan to buy $1.25 trillion in mortgage-backed securities, a program that directly affects home mortgage rates and has had a much more noticeable effect than the Treasury bond program.
Analysts said the Federal Reserve had entered a wait-and-see period, continuing to supply the economy with cheap money but not expanding or extending the emergency programs beyond what policy makers had already been announced.
Despite growing confidence that the worst of the crisis is behind them, Fed officials made it clear they were still more worried about rising unemployment than a resurgence of inflation.
The government’s preliminary estimates show that the economy’s downturn slowed sharply in recent months, contracting only 1 percent in the second quarter compared with 6.4 percent in the first. The rate of job losses has slowed sharply as well, though the nation still lost 247,000 jobs in July.
But the most recent forecasts by Fed policy makers anticipate that the economy will begin an unusually slow recovery in the second half of this year and only gradually pick up speed in 2010. Even if all goes according to plan, the Fed forecast envisions that unemployment will climb from its already high level of 9.4 percent and average as much as 9.8 percent through the end of 2010.
“The balance of risks is still tilted toward weakness in growth and employment, and not toward higher inflation,” said William C. Dudley, president of the Federal Reserve Bank of New York in a speech on July 29. Mr. Dudley said it was “premature to talk about ‘when’ we are going to exit from this period of unusual policy accommodation.”
Rising productivity rates in the United States are giving the Fed more maneuvering room. The productivity of workers, the amount produced per hour of work, shot up at an annual rate of more than 6 percent in the second quarter and has been climbing throughout the recession.
That is unusual for an economic downturn, but it means that wages have more room to climb before employers start to raise prices for their goods and services.
The Fed’s decision to end its program of buying Treasury bonds appears to reflect both practical and philosophical concerns among some policy makers.
According to minutes of the Fed’s previous policy meeting in June, some policy makers worried that the central bank’s heavy purchases of new Treasury debt would be seen by investors as simply financing the federal government’s huge deficits. That, they feared, would erode the Fed’s credibility and heighten inflation expectations.
“Some of those who are less disposed to additional Treasury purchases worry about the perception in the markets that they are motivated by a desire to help the Treasury finance a mountain of debt,” Laurence H. Meyer, chief economist at Macroeconomic Advisers, and a former Fed governor, wrote in a note to clients last week.
By contrast, Mr. Meyer said, most policy makers seem to agree that the mortgage-security program strikes at the heart of the economy’s biggest problem — the housing market.
On a practical level, analysts said, the Treasury-buying program never packed as much punch in the markets.
At $300 billion, the Treasury purchases are only one-quarter as big as the mortgage program, and they have equaled only about one-third of the new issuance of Treasury securities, according to Ira Jersey, an interest-rate analyst at Royal Bank of Canada Capital Markets. By contrast, the Fed purchases of government-guaranteed mortgage securities equaled more than 100 percent of new issuance in that market.
Though mortgage rates have edged up in recent weeks, along with other long-term interest rates, the spread between mortgage rates and risk-free Treasury rates has narrowed by almost half since last November.
“The program to buy Treasuries wasn’t as effective as some of the other programs, like the mortgage-security program, so ending it made sense,” Mr. Jersey said.
Marin Real Estate July Newsletter and Stats
Buyers Are Back and Seeking Opportunity-
Don’t Confuse Activity with Appreciation
Recent escrow activity levels have been refreshing if not invigorating. New escrows generated in April –
June ’09 represent the three best months since June ’07. This progress seems to be continuing.
In fact, we could experience the busiest summer in Marin County real estate in recent years.
This increase in activity (not price appreciation) follows the slowest six month stretch we have seen in
sixteen years. Closings of Marin County single family homes in the 4th quarter of ’08 (457) was the lowest
since 1994. Closings in 1st quarter ’09 (222) and 2nd quarter ’09 (421) both set the sixteen year low as well.
We feel this recent rally is a reflection of increasing consumer confidence either as a result of, or in combination
with, the stock market rebound which began in March ’09.
Apr – Jun $500K - $1M $1M & Up $1 - $3M $3 Million +
Volume 7.09% -56.24% -49.81% -76.61%
Units Sold 9.31% -51.49% -49.16% -70.00%
Average Price -2.03% -9.66% -1.27% -17.02%
Median Price -2.28% -1.87% 1.38% -14.35%
Days on Market 41.77% 29.69% 1.27% 15.53%
On a year-over-year basis, pricing of single family homes in Marin County is a completely different
comparison. Depending on your neighborhood, the value of your home could be off 15% - 40% from its
peak. As we have documented in previous newsletters, Marin County real estate was impacted by two
financial factors. Beginning in August 2007, the northern part of the county (Novato and areas of San
Rafael) suffered from the sub-prime lending crisis. The activity level in Central and Southern Marin was
nearly frozen from October ’08 thru mid-March ’09- a result of the stock market meltdown.
Now, our recovery is driven by an increase in units sold. Today’s buyers are driven by value and opportunity.
Sellers clinging to what they recently paid for a home or what they need to sell it for seem to be
grasping at “hope” and have become frustrated in a buyers’ market where days on the market produces
diminishing returns.
To transition the above table to positive/green indicators and price appreciation, we will need to see a
substantial increase and sustained level of demand. May and June ’09 activity may represent the beginning
of this recovery. However, the current rally is in units sold, not price appreciation.
Buyer opportunities in the Marin market are extraordinary. The recent pricing of homes back to levels seen
in the early part of the decade, combined with very attractive mortgage rates and flexible, if not motivated
sellers, represent ideal conditions for investing in Marin County real estate. If you compare your investment
in Marin County real estate to other prestigious communities throughout the USA or the results in the stock
markets, Marin County real estate may be the best performing asset in your portfolio.
For details on your home or investment strategy, please feel free to call us.
For more detailed information and graphs please see our attached quarterly newsletter -
Don’t Confuse Activity with Appreciation
Recent escrow activity levels have been refreshing if not invigorating. New escrows generated in April –
June ’09 represent the three best months since June ’07. This progress seems to be continuing.
In fact, we could experience the busiest summer in Marin County real estate in recent years.
This increase in activity (not price appreciation) follows the slowest six month stretch we have seen in
sixteen years. Closings of Marin County single family homes in the 4th quarter of ’08 (457) was the lowest
since 1994. Closings in 1st quarter ’09 (222) and 2nd quarter ’09 (421) both set the sixteen year low as well.
We feel this recent rally is a reflection of increasing consumer confidence either as a result of, or in combination
with, the stock market rebound which began in March ’09.
Apr – Jun $500K - $1M $1M & Up $1 - $3M $3 Million +
Volume 7.09% -56.24% -49.81% -76.61%
Units Sold 9.31% -51.49% -49.16% -70.00%
Average Price -2.03% -9.66% -1.27% -17.02%
Median Price -2.28% -1.87% 1.38% -14.35%
Days on Market 41.77% 29.69% 1.27% 15.53%
On a year-over-year basis, pricing of single family homes in Marin County is a completely different
comparison. Depending on your neighborhood, the value of your home could be off 15% - 40% from its
peak. As we have documented in previous newsletters, Marin County real estate was impacted by two
financial factors. Beginning in August 2007, the northern part of the county (Novato and areas of San
Rafael) suffered from the sub-prime lending crisis. The activity level in Central and Southern Marin was
nearly frozen from October ’08 thru mid-March ’09- a result of the stock market meltdown.
Now, our recovery is driven by an increase in units sold. Today’s buyers are driven by value and opportunity.
Sellers clinging to what they recently paid for a home or what they need to sell it for seem to be
grasping at “hope” and have become frustrated in a buyers’ market where days on the market produces
diminishing returns.
To transition the above table to positive/green indicators and price appreciation, we will need to see a
substantial increase and sustained level of demand. May and June ’09 activity may represent the beginning
of this recovery. However, the current rally is in units sold, not price appreciation.
Buyer opportunities in the Marin market are extraordinary. The recent pricing of homes back to levels seen
in the early part of the decade, combined with very attractive mortgage rates and flexible, if not motivated
sellers, represent ideal conditions for investing in Marin County real estate. If you compare your investment
in Marin County real estate to other prestigious communities throughout the USA or the results in the stock
markets, Marin County real estate may be the best performing asset in your portfolio.
For details on your home or investment strategy, please feel free to call us.
For more detailed information and graphs please see our attached quarterly newsletter -
More Marin Home Sales Stats June 2009
| Residential and Non-Residential Improved Properties | |||
|---|---|---|---|
| Type | #Sales | $Total | |
| Single Family Properties | |||
| 1 Living unit | 228 | $193,798,487 | |
| Multi Family Properties | |||
| 2 Living units | 10 | 9,092,500 | |
| 3 Living units | 1 | 380,000 | |
| Commercial, Industrial & Rural Properties | |||
| 0 Living units | 2 | 5,465,040 | |
| Residential and Non-Residential Improved Properties | |||
| SUM | 241 | $208,736,027 | |
Marin Real Estate Sales for June 2009, Marin Home Statistics
| Marin Real Estate Sales for June 2009 | ||||||
|---|---|---|---|---|---|---|
| Single Family Homes | ||||||
| Conventional Detached Dwellings | Condominiums/Townhouses | |||||
| City | #Sales | Mean price | Median | #Sales | Mean price | Median |
| Belvedere | 1 | $950,000 | $950,000 | 0 | ||
| Corte Madera | 10 | 789,000 | 735,500 | 2 | 555,000 | 555,000 |
| Fairfax | 9 | 644,222 | 719,000 | 1 | 365,000 | 365,000 |
| Larkspur | 9 | 1,209,667 | 1,235,000 | 1 | 408,500 | 408,500 |
| Mill Valley | 15 | 1,624,233 | 1,425,000 | 3 | 762,000 | 840,000 |
| Novato | 30 | 622,257 | 580,000 | 14 | 286,321 | 223,250 |
| Ross | 5 | 2,128,200 | 2,300,000 | 0 | ||
| San Anselmo | 14 | 784,111 | 771,250 | 1 | 214,300 | 214,300 |
| San Rafael | 29 | 777,908 | 758,000 | 20 | 311,378 | 280,000 |
| Sausalito | 1 | 922,000 | 922,000 | 1 | 1,065,000 | 1,065,000 |
| Tiburon | 6 | 1,800,703 | 1,592,500 | 1 | 126,935 | 126,935 |
| Unincorporated | 45 | 1,090,971 | 955,000 | 10 | 443,270 | 406,000 |
| Total | 174 | $997,437 | $827,500 | 54 | $374,898 | $358,350 |
| Total Single Family Homes Sold: 228 | ||||||
| Mean / Median Home Sale Price: $849,993 / $722,000 | ||||||
| Mean Home Living Area: 1,838 sq. ft. | ||||||
