Heidi Pay
Southern Marin Real Estate Market Update 
The Southern Marin real estate market includes homes sold in Sausalito, Mill Valley, Tiburon and Belvedere. During the month of December of 2008, only 18 homes in these areas sold. The median price was $1,300,000, down 11% from last December. Sellers are feeling the effect of increased inventory with 45% more homes on the market in those towns.
With stiff competition and increased supply, the listing prices are coming down with the median list price dropping over 20% from last year from $2,262,500 to $1,799,000 – a $463,000 difference. However, this difference in list price does not necessarily represent diminished value.
In 2008, a median home in southern Marin sold for $721/sq. ft., compared to $730 the previous year, a 1% decrease in square foot price. Square footage pricing in averages assists in determining if there is true value erosion, because a decline in average or median price may reflect increased activity in more affordable homes.
Caution should be exercised in computing valuation on Marin properties because we have very unique homes and that pricing method is most applicable to locations with extensive subdivisions, unlike Marin.
While substantially more homes are on the market – 224 compared to 154 last December – there is still activity where buyers are finding value from anxious sellers with realistic pricing. More units were in contract last month than the previous year – a 17% increase – which may be in part due to the outstanding interest rates that buyers with solid credit and documented income are able to find.
This market offers an excellent opportunity to transition up to a more expensive home since a reduction in value is a greater figure on a more expensive home. Combined with low fixed interest rates and a reduced tax basis, those in a position to buy are starting to take advantage of the opportunities to purchase homes in areas they previously could not afford.
Blogged on 2/4/2009
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