The winter is nearly gone but the market shows no sign of cooling off. Aside from the usual seasonal drop off in the number of sales, the pressure on prices due to lack of inventory is pushing values up, not only month-over-month, but year-over-year. While this is good news on its surface, I can’t help thinking we will not see a truly stable real estate market that until we have recovery in all parts of the economy.
December saw a jump in sales from December 2011, 229 sales versus 209, and increase of 10%. As for prices, the Average price was up 18% from December 2011, while the Median jumped 22%, indicators that the higher end of the market is starting to move and that the numbers of low-end distressed homes is starting to thin.
In January the trend continued, though at not the same scorching pace. The number of sales actually dipped 24%, but the pressure on prices continued. The Average price rose 6% from January 2011, while the Median jumped 17%
If what I’m hearing from other agents is correct, February is just more of the same. Condos are flying off the shelves within days, while the sale of high-end homes, typically taking a few months to get offers, continues unabated.
Check out these tow IJ articles, one about Bay Area condos (can easily be applied to Marin, and one about the sale of high-end homes.