Has the Market Bottomed Out?

One of the ways Realtors, including this one, get new listings is by calling "expireds"—the loose trade term for those listings which did not sell, and have expired or in fact been cancelled. The idea is that the Sellers of these homes are the most motivated and represent one of the best opportunities for doing business in the near term. Sometimes the home was marketed ineffectively: poor exposure, lousy photos, inadequate knowledge of the amenities. Sometimes it’s as “simple” as unrealistic pricing. No matter what the reason for not achieving a sale, the subsequent actions of these Sellers can provide a good indicator of what Sellers at the forefront of the market are thinking. And right now, many of them are choosing to lease out their properties, rather than reduce their price to achieve a sale. Many of these properties, my latest rough estimates are as high as 30%, are being leased out until the Spring selling season, when the thinking goes, sales will pick up . . . . are these Sellers just putting off the inevitable or is this trend a signal to Buyers that this really is the bottom? We never know until the bottom is behind us, but many of us in the real estate business can’t believe the deals that are out there for Buyers right now. Couple this with incredibly low interest rates (30 year conventional mortgages as low as 4.0% recently) and it’s a hard market to beat for value. And those low rates benefit Sellers too, by enabling more ready, willing and able Buyers to be active. Why wait?

Regular quarterly statistics: see my website: www.MarinHomeProperties.com

Compelling Stabilization

The trend toward stability continued with increased numbers of homes selling in all Marin towns, except Ross, where the number of homes sold is usually so small, one cannot really discern a trend. Prices showed mixed improvements, reminding us again that the answer to “How’s the market?” depends on property price range and town. One of my colleagues, in giving me feedback on one of my listings, just used a word that perfectly captures Buyers’ attitude: “compelling”. Homes must be marketed to show compelling features that translate into lifestyle benefits in order for a Buyer to make an offer. And, in this credit scarce market, the compelling features have to significantly outweigh the challenges of the home. Why? Because 1200 single family homes are currently available for sale in Marin. 214 sold in June. Technically, this is approximately 6 months worth of inventory, and is termed a “neutral” market, but the sheer number of homes available means that Buyers will view a lot of homes before making a purchase decision.

Need help understanding what you can achieve in this market? Call me today for a fact-filled conversation--guaranteed confidential and pressure-free!

Marin Real Estate Update- First Quarter 2010

Stabilization continued across most towns in Marin during the First Quarter. Most of the market forecasters that I’ve read predict continued stabilization, but no real appreciation to speak of for the next 3 years and some predict longer than that. I rarely hear Sellers saying “I’ll hold off selling until the market recovers” anymore. Why? Because we are finally understanding that “recovery” probably doesn’t mean the sustained levels of double digit appreciation that we saw several years ago. So, Sellers are getting on with their lives and it shows in much more realistic listing prices. Are you renting out your property, waiting to sell until the market improves? Check that your negative carry isn’t pushing your breakeven sale price even further out into the future. Call me if you’d like me to run some numbers for you. In the meantime, Buyers continue to press their advantage, and are only submitting offers to purchase when properties evoke a “wow, that’s a good value” response. Buyers really are doing their homework; expect a flurry of activity as the Federal tax credits for homebuyers expire at the end of April.

Need help understanding what you can achieve in this market? Call me today for a fact-filled conversation--guaranteed confidential and pressure-free!