23 Nov North Bay Real Estate Market is Showing Signs of Fatigue
A discussion about Marin would be incomplete without some conversation about real estate since we happen to live in some of the most beautiful real estate in the world! So as we approach the end of 2016 I thought it important to share information about interesting changes we are observing in our market. No, I don’t see it crashing, but I am witnessing it slowing, and I am possibly seeing the beginnings of a shift to a more level seller/buyer playing field. I recently participated in a study of Marin, Napa, and Sonoma real estate market trends sponsored by my company, Terra Firma Global Partners which resulted in a well written report that was shared with local Bay Area publications and is now starting to appear in print articles. I researched and provided the information regarding the Marin market place, while two of my colleagues provided the same information for Napa and Sonoma counties.
In summary, the residential real estate markets in the North Bay counties of Marin, Napa, and Sonoma are decelerating and showing signs of fatigue after five consecutive years of growth which could signal the end of the current real estate cycle. Statistics show that sales of single family dwellings and condos are lower year to date in all three counties with Marin sales being off 15% year over year. Additionally, inventory levels remain at historically low levels, sales velocity is slowing, and buyers are growing weary of the dizzying heights the markets have reached and are moving more slowly when it comes to making offers. We are also seeing:
- An increase in the number of homes on the market that are overpriced
- An increase in the number of days the average home is on the market before it sells
- We continue to see correctly priced updated homes sell quickly with multiple offers although the percentage of multiple offers is declining
- More intense negotiations between buyers and sellers
- An uptick in price reductions
- Sellers accepting offers that are subject to the sale of the buyer’s property
- A large group of potential sellers that fear selling their homes and not finding a replacement home in Marin
- Rising mortgage rates
The complete article is available here: http://news.theregistrysf.com/north-bay-residential-real-estate-market-decelerating-showing-signs-fatigue/
Please feel free to share this information with family and friends and contact me if you have any questions!