North Bay Home Sales, Values & Appreciation
The North Bay Luxury Home Market
Real Estate Cycles
The chart below illustrates in a simplified manner the market cycles of the past 30+ years. It is based on the S&P Case-Shiller Index pertaining to Bay Area “high-price tier” homes, the segment which dominates the Marin County market. The Napa and Sonoma cycles were similar except for the magnitudes of the recent subprime bubble, crash and recovery – all of which were bigger than Marin’s.We are approximately 3 years into the current recovery. Since the 1980’s, recoveries have typically lasted 5 to 7 years before peaking – which isn’t necessarily how this cycle will play out.
North Bay Home Sales by Property Type
Sales with and without Price Reductions
Those North Bay listings that sold without price reductions sold relatively quickly and averaged a sales price within 1% of asking price. Those listings that went through one or more price reductions saw large discounts off original list price and, on average, took 67 to 81 days longer to sell.And a good percentage of listings didn’t sell at all.Even in a strong market, correct pricing, preparation and marketing remain vitally important to achieve the best possible result when selling one’s home.
Months Supply of InventoryThe supply and demand dynamic continues to favor sellers, which, of course, has been the primary factor behind home-price appreciation.
Mortgage Interest Rates
How the Bay Area Spends its Money
On a lighter note, and to take a brief break from real estate, these two charts, which we’ve just added to our recent Bay Area Demographics Report, compare how we spend our money as compared to national averages.
Please call or email if you have any questions or comments regarding these analyses.
Fluctuations in median sales prices and average dollar per square foot values are not unusual and these fluctuations can occur for other reasons besides changes in value, such as seasonality; inventory available to purchase; availability of financing; changes in buyer profile; and changes in the distressed and luxury segments. How these statistics apply to any particular property is unknown without a specific comparative market analysis. All data from sources deemed reliable, but may contain errors and is subject to revision.