Kyle Frazier, J.D., Broker Associate Ι Pacific Union International | Christies International Real Estate | (415) 350-9440

Marin Luxury Properties Report Pacific Union – Christie’s International Real Estate | Marin County, CA Luxury Home Sales (October 2011)

Pacific Union Int’l – Christie’s Great Estates | Marin County, CA Luxury Home Sales (October 2011) — Luxury home sales slowed to 10 in September 2010. This reflects a seasonal lull as Summer travel takes center stage in August and home sales slow in Marin County). It remains clear that buyers will act quickly in the luxury home market when they feel a particular home reflects clear value and/or possess unique sales characteristics. Extraordinary opportunities are literally around every corner for buyers who can stomach uncertainty. Pricing in the marketplace (especially for homes that started off overpriced) is soft and “value” is evident in virtually every corner and every price segment of the luxury market.

In line with normal seasonal adjustments, the inventory of luxury homes remains constricted with just 122 properties actively listed over $2 million in Marin. This inventory level is lower than years past as prices have declined substantially in many markets (e.g., such that homes that priced at $2.25 million in 2006 are now priced below $2 million). Moreover, to the extent sellers do not have a compelling reason to sell now, most are waiting for prices to recover rather trade in today’s market.

Marin County cities recording luxury home sales between $2 million and $4 million in August 2011 included: Tiburon (1), Belvedere (1); Mill Valley (3); Larkspur (1); Sausalito (1); Ross (1); Kentfield (1). These homes averaged a mere 58 days on market (very low). Their average sales price was $2.59 million (roughly $718 per square foot), with an average of 3,720 square feet. Marin County’s ultra-luxury market (homes priced in the $4 million and up range) accounted for one sale last month — a 2.2 acre estate in the flats of Ross.

Note: As a member of the Top Agent Network (top 10% in Marin) and the Marin Platinum Group (Top 100 agents), I have access to a database with several dozen luxury homes not currently on the MLS, but discretely offered for sale off-market. Please contact me regarding your specific desires.

By: Kyle Frazier, J.D. & Broker, Certified Luxury Home Marketing Marketing Specialist (CLHMS), Certified Residential Specialist (CRS), Realtor with Pacific Union | Christie’s International Real Estate. Call Kyle Frazier at 415/350-9440 for more luxury home market information in Marin County, California (the San Francisco Bay Area’s “North Bay”).

Pacific Union International – Christie’s Great Estates | Marin County, CA Luxury Home Sales (February 2011)

Pacific Union Int’l – Christie’s Great Estates | Marin County, CA Luxury Home Sales (February 2011) — In line with expectations, January 2011 luxury home sales were limited with 9 trades (there were just 6 in December 2010). Of course, many buyers, most economists, and consumer sentiment are feeling bouyant about our the economic and housing environments. Indeed, there are extraordinary opportunities available right now for buyers as pricing in the marketplace (especially for homes that have remained on the market through the Winter months) is soft and “value” is evident in virtually every segment of the luxury segment. In line with normal seasonal adjustments, the inventory of luxury homes for sale is very low — just 96 homes total on the MLS over $2 million in Marin.

Cities recording luxury home sales between $2 million and $4 million in February 2011 included: Belvedere (1), San Anselmo (1), San Rafael (1), Tiburon (1), Kentfield (3), and Ross (1). These homes averaged 116 days on market. Their average sales price was $2.521 million (roughly $807 per square foot), with an average of 3,522 square feet. Marin County’s ultra-luxury market (homes priced in the $4 million and up range) accounted for zero sales last month and there are currently zero such homes in escrow.

Note: As a member of the Top Agent Network (top 10% in Marin) and the Marin Platinum Group (Top 100 agents), I have access to a database with several dozen luxury homes not currently on the MLS, but discretely offered for sale off-market. Please contact me regarding your specific desires.

By: Kyle Frazier, Certified Luxury Home Marketing Marketing Specialist (CLHMS), Certified Residential Specialist (CRS), Broker Associate, Realtor | Christie’s Great Estates — Christie’s Great Estates. Call Kyle Frazier at 415/350-9440 for more luxury home market information in Marin County, California (the San Francisco Bay Area’s “North Bay”).

Christie’s Great Estates | Marin Luxury Homes Report (October 2010)

Christie’s Great Estates | Marin County, CA Luxury Home Sales — With 13 trades in September 2010, the luxury property market in Marin County (properties and estates over $2 million) again performed admirably in the face of uncertainty. As it is becoming clearer that the overall economic and housing environments are improving, real buyers are making legitimate offers. Pricing in the marketplace certainly suggests “value” and inventory is steadily increasing — there are now 163 homes actively on the market.

Cities recording luxury home sales between $2 million and $4 million in September 2010 included: Tiburon (4), Mill Valley (1), Belvedere (1), and Kentifield (2). In addition, Nicasio and Stinson Beach also recorded one sale appiece. These homes averaged 154 days on market. Their average sales price was $2.748 million (roughly $784 per square foot), with an average of 2,748 square feet.

Marin County’s ultra-luxury market (homes priced in the $4 million and up range) witnessed three sales last month. These homes averaged 100 days on market. Their average sales price was $5.06 million (roughly $1,177 per square foot) and 4,484 square feet. We currently have 60 homes for affluent buyers to choose from in this high end price band.

Note: As a member of the Marin Platinum Group, I have access to a database with several dozen luxury homes not currently offered on the MLS, but available for sale. Please contact me regarding your specific desires.

By: Kyle Frazier, Certified Luxury Home Marketing Marketing Specialist (CLHMS), Certified Residential Specialist (CRS), Broker Associate, Realtor | Christie’s Great Estates — Christie’s Great Estates. Call Kyle Frazier at 415/350-9440 for more luxury home market information in San Francisco and Marin Counties.

Pacific Union International is the leading broker for Marin County luxury homes.

Marin County, California, Luxury Homes Report (February 2010–Sales and Inventory Analysis)

Marin County, California’s luxury home market continues to recover from the proverbial wasteland of late 2008 and early 2009 when it seemed as though the luxury home market would never recover. Yet, as reported in previous months, real buyers continue to snap up homes in prestige locations such as Belvedere, Ross, Kent Woodlands, etc. Indeed, “value” properties are gobbled up quickly. Despite this apparent thirst for luxury digs, inventory levels remain 40% higher than two years ago. This trend is not unique to Marin, but prevails nationwide. For a detailed snapshot of current national trends from the Institute for Luxury Home Marketing, click HERE.

The below chart reflects the number of homes in the $2 million to $4 million luxury price band which are in escrow (compared against the past 2 years). Note that the number of homes with accepted offers (not closed sales), is up 50% from 2 years ago and 450% from last year. This is a promising trend.

Another statistic that may not be readily apparent to casual observers is the fact that prices in the $2 million to $4 million price band are stabilizing as median sales prices countywide are down just 6% over the past 2 years. Of course, the impact of the downturn varies greatly by neighborhood and even within neighborhoods based on amenities.

$2 Million to $4 Million Luxury Homes

Following a very strong November and December 2009, sales in January 2010 reflected our typical seasonal slowdown as Marin County recorded just 4 trades. Yet, we have another 13 homes in escrow. Certainly, buyers are feeling some urge to buy as it appears that the poor economic environment may be improving and the pricing in the marketplace suggests “value.” Inventory remains low (although higher than last month) at just 70 homes on the market between $2 million and $4 million.

Cities recording January 2010 sales in this price band included: Belvedere (1), Mill Valley (1), Kentfield (1), and Tiburon (1). These homes averaged 239 days on market. Their average sales price was $2.542 million (roughly $626 per square foot), with an average of 4,015 square feet. The absorption rate for Marin homes in this price band is 17.5 months (which is high due to the low number of trades and increased inventory).

$4 Million & Up Ultra-Luxury Homes

The already low inventory level of Marin County’s ultra-luxury market (homes priced in the $4 million and up range) held steady at 36 homes for sale. The highest concentrations of homes in this price band are Tiburon and Belvedere. Marin County experienced 2 sales last month in this price band — one was Sean Penn’s estate and the other was a one-of-a-kind supreme location estate which sold for $14 million. Both sales were in Ross and the latter was accomplished via a Morgan Lane buyer client.   

By: Kyle Frazier, Certified Luxury Home Marketing Marketing Specialist (CLHMS), Certified Residential Specialist (CRS), Broker Associate, Realtor | Christie’s Great Estates — Morgan Lane International. Call Kyle Frazier at 415/350-9440 for more luxury home market information in San Francisco and Marin Counties.

Marin County, California, Luxury Homes Report (January 2010–Sales and Inventory Analysis)

Home sales in Marin County, California’s luxury price bands continue to recover from the proverbial wasteland of late 2008 and early 2009 when it seemed as though the luxury home market would never recover. Yet, as reported in previous months, real buyers continue to snap up homes in prestige locations such as Belvedere, Ross, Kent Woodlands, etc. Indeed, “value” properties are gobbled up quickly. Despite this apparent thirst for luxury digs, inventory levels remain 40% higher than two years ago. This trend is not unique to Marin, but prevails nationwide. For a detailed snapshot of current national trends from the Institute for Luxury Home Marketing, click HERE.

The below graph tracks asking prices for 3 popular cities in Marin — Tiburon/Belvedere (they are combined here because they use the same zip code), Mill Valley, and Kentfield.

Year over year luxury market inventory levels in Mill Valley have hovered at around 20% higher than last year for 6 months (and are now down to about 12%). Meanwhile, inventory in Kentfield is up 22% and Tiburon – Belvedere inventory levels are over 42% higher than last year.

Below is a new chart focusing on the percentage of homes that have experiencd price reductions and the depth of those price reductions, on average. This chart examines these trends in Mill Valley and in Belvedere – Tiburon. It is perhaps not surprising that approximately 17% of listings in Tiburon – Belvedere have experienced a price reduction and those reductions average about 8%.

Real Estate Market Chart by Altos Research www.altosresearch.com

$2 Million to $4 Million Luxury Homes

Following a strong November, sales in December (a traditionally slow month) were also quite high given the typical seasonal slowdown. With 15 trades, this December was stronger than anybody may have anticipated six months ago. Additionally we have 12 more homes in escrow. Certainly, buyers are feeling some urge to buy as it appears that the poor economic environment may be improving and the pricing in the marketplace suggests “value.” Inventory is low, as is typical this time of year, with just 56 homes on the market between $2 million and $4 million.

Cities recording December 2009 sales in this price band included: Belvedere (1), Ross (3) Mill Valley (2), Larkspur (1), Kentfield (1), Tiburon (5), and San Rafael (1), and San Anselmo 1). These homes averaged 139 days on market. Their average sales price was $2.626 million (roughly $715 per square foot), with an average of 3,968 square feet. The absorption rate for Marin homes in this price band is about 3.7 months (down from 13 months in November — this huge reduction is the result of seasonally reduced inventory levels).

$4 Million & Up Ultra-Luxury Homes

The already low inventory level of Marin County’s ultra-luxury market (homes priced in the $4 million and up range) dipped to 34 homes for sale. The highest concentrations of homes in this price band are Tiburon and Belvedere. Marin County experienced just 1 sale last month in this price band. It was a $5.4 million Belvedere estate with great views: days on market – 315, price – $5.4 million, square feet – 7,300.  

By: Kyle Frazier, Certified Luxury Home Marketing Marketing Specialist (CLHMS), Certified Residential Specialist (CRS), Broker Associate, Realtor | Christie’s Great Estates — Morgan Lane International. Call Kyle Frazier at 415/350-9440 for more luxury home market information in San Francisco and Marin Counties.

Marin County, California, Luxury Homes Report (December 2009–Sales and Inventory Analysis)

The luxury home market in Marin County, California, which is vastly improved over a year ago, seems to have hit a comfortable level of activity. As reported in previous months, real buyers continue to homes in prestige locations with emphasis on views and lifestyle amenities (such as large usable yards, proximity to athletic clubs/shopping, reputable schools, and sensible scales). And they are seeking “value.” For the last 2 quarters, the Marin County luxury market has strongly favored homes priced under $3 million. [For a detailed snapshot of current national trends from the Institute for Luxury Home Marketing, click HERE. And if you would like a hyper-local report relating to any town or zip code in Marin or San Francisco, e-mail or call me at (415) 350-9440.]

The below graph tracks asking prices for 3 popular cities in Marin — Tiburon/Belvedere (they are combined here because they use the same zip code), Mill Valley, and Kentfield.

Year over year luxury market inventory levels in Mill Valley have hovered at around 20% higher than last year for 6 months (and are now down to about 15%). Meanwhile, inventory in Kentfield is up 40% and Tiburon – Belvedere inventory levels are over 60% higher than last year.

Below is a new chart focusing on the percentage of homes that have experiencd price reductions and the depth of those price reductions, on average. This chart examines these trends in Mill Valley and in Belvedere – Tiburon. It is perhaps not surprising that approximately 25% of listings in Tiburon – Belvedere have experienced a price reduction and those reductions average about 8%.

Real Estate Market Chart by Altos Research www.altosresearch.com

$2 Million to $4 Million Luxury Homes

Following a very strong October, November sales were also quite high given the typical seasonal slowdown. Buyer activity has sustained through November. With 13 sales, this November was stronger than anybody may have anticipated (there were 9 sales in October). Additionally we have 14 more homes in escrow. Certainly, previously patient buyers are feeling some urge to buy now as it appears that the poor economic environment may be improving and the pricing in the markerplace suggests “value.” Inventory is low, as is typical this time of year, with just 70 homes on the market between $2 million and $4 million.

Cities recording November 2009 sales in this price band included: Belvedere (2), Ross (1) Mill Valley (4), Larkspur (1), Tiburon (3), and San Rafael (2). These homes averaged 98 days on market. Their average sales price was $2.858 million (roughly $799 per square foot), with an average of 3,673 square feet. The absorption rate for Marin homes in this price band is about 5.3 months (down from 13 months in November — this huge reduction is the result of seasonally reduced inventory levels).

$4 Million & Up Ultra-Luxury Homes

The already low inventory level of Marin County’s ultra-luxury market (homes priced in the $4 million and up range) dipped slightly to 40 homes for sale (there was 47 such homes on the market in November 2009). The highest concentrations of homes in this price band are Tiburon and Belvedere. Marin County experienced just 2 sales last month in this price band and these homes had the following characteristics: days on market – 107, price – $5.237 million, square feet – 4,906, price per square foot – $1,059. Note that Christie’s Great Estates agents represented all buyers and sellers in last months ultra-luxury market segment in Marin County. 

By: Kyle Frazier, Certified Luxury Home Marketing Marketing Specialist (CLHMS), Certified Residential Specialist (CRS), Broker Associate, Realtor | Christie’s Great Estates — Morgan Lane International. Call Kyle Frazier at 415/350-9440 for more luxury home market information in San Francisco and Marin Counties.

Marin County, California, Luxury Homes Report (November 2009–Sales and Inventory Analysis)

Building on a trend noted in last month’s report, media coverage of the overall economy has improved. In particular, reporting on the housing market. Forecasters are predicting that 2010 will be the first year since 2005 for housing to contribute to the growth of the U.S. economy (based on a survey by the National Association for Business Economics). According to that organization, home prices are expected to rise 2 percent next year — over 80% of economists surveyed think the recession is over and recovery has begun. The Mortgage Bankers Association Chief Economist Jay Brinkmann, predicts that sales of existing homes will rise 11 percent in 2010, with sales of new homes climbing 21 percent.

But, perhaps more importantly, the Dow Jones has rocketed up past 10,000 and the tone of the W-shaped recovery dialogue has moderated. It was announced today that JPMorgan Chase plans to hire 1,200 mortgage bankers in light of improved housing market and signs of stability.

Finally, we know from past experience that in down cycles, once the San Francisco housing market recovers, there is a domino effect on surrounding communities. Accordingly, in our current cycle, we believe that our best leading indicator regarding a healthy, appreciating market (particularly in Southern Marin) will be the home sales environment in San Francisco. And there can be no doubt that the San Francisco market has improved dramatically in recent months. Additionally, as the banking institutions regain their footing and again provide bonuses to their employees, we will also see a surge in luxury home sales. In fact, if bonuses are significant and broad-based, I predict a very strong luxury sales market early in 2010 as buyers snap up the many “values” out there in the luxury and ultra-luxury sectors.

As reported in previous months, real buyers have become less numerous. They are placing emphasis on prestige locations, views, lifestyle amenities (usable yards, proximity to clubs/shopping, etc.), schools, and sensible scale. And they are seeking “value.” The Marin County luxury market has favored homes priced under $3 million — although 5 homes traded over $4 million in November 2009. [For a detailed snapshot of current national trends from the Institute for Luxury Home Marketing, click HERE. And if you would like a hyper-local report relating to any town or zip code in Marin or San Francisco, e-mail or call me at (415) 350-9440.]

The below graph tracks asking prices for 3 “hot” locales in Marin — Tiburon/Belvedere (they are combined here because they use the same zip code), Mill Valley, and Kentfield. Interestingly, while Belvedere continues to see asking prices drop, Kentfield and Mill Valley have seen asking prices increase over the last 4 months. Of course, asking prices do not necessarily closely reflect selling prices and in Mill Valley, there are lots of homes on the market in the higher price bands, which have not sold.

The year over year inventory levels in Mill Valley have hovered at around 20% higher than last year for 6 months, but has dipped to about 15%. Meanwhile, inventory in Kentfield is up 65% and Tiburon – Belvedere inventory levels are over 90% higher than last year.

Below is a new chart focusing on the percentage of homes that have experiencd price reductions and the depth of those price reductions, on average. This chart examines these trends in Mill Valley and in Belvedere – Tiburon. It is perhaps not surprising that nearly 35% of listings in Tiburon – Belvedere have experienced a price reduction and those reductions average about 12%.

Real Estate Market Chart by Altos Research www.altosresearch.com

$2 Million to $4 Million Luxury Homes

As we begin to see the contours of the Winter market form, many feel we will have an active Winter. Many agents are noting (and this is backed up by the numbers) that we had our best month of the year in October. Buyer activity has picked up significantly. The number of sales (9) and homes in escrow (17) remain quite strong. There is a lot of home shopping going on as patient buyers have begun snapping up homes that they perceive represent “value.” I expect that next month will see a continued surge of sales. Inventory remains low with 108 homes on the market between $2 million and $4 million.

Cities recording sales in this price band included: Tiburon (1), Belvedere (1), Ross (1) Mill Valley (3), Sausalito (1), and San Rafael (2). These homes averaged 98 days on market. Their average sales price was $2.858 million (roughly $799 per square foot), with an average of 3,673 square feet. The absorption rate for Marin homes in this price band is about 12 months (down from 18 months in October).

$4 Million & Up Ultra-Luxury Homes

The inventory level of Marin County’s ultra-luxury market (homes priced in the $4 million and up range) remained virtually unchanged with 47 homes for sale. The highest concentrations of homes in this price band are Tiburon, Belvedere, Sausalito, and Ross. As noted earlier, Marin County experienced 5 sales last month and these homes had the following characteristics: days on market – 111, price – $5.86 million, square feet – 5,030, price per square foot – $1,011. Note that Christie’s | Morgan Lane agents were involved in three of the five sales in this price band last month.

By: Kyle Frazier, Certified Luxury Home Marketing Marketing Specialist (CLHMS), Certified Residential Specialist (CRS), Broker Associate, Realtor | Christie’s Great Estates — Morgan Lane International. Call Kyle Frazier at 415/350-9440 for more luxury home market information in San Francisco and Marin Counties.

Marin County, California, Luxury Homes Report (September 2009–Sales and Inventory Analysis)

Earlier this month marked the one-year anniversary of the beginning of the equities market meltdown, which profoundly impacted Marin County, California’s luxury real estate market. In our New Economy, real buyers have become less numerous and have placed increased emphasis on prestige locations, views, lifestyle amenities (usable yards, proximity to clubs/shopping, etc.), schools, and sensible scale.

,

As reported all year, the luxury segment remains weighted towards homes priced under $4 million — while we had 3 sales of homes priced over $4 million in July 2009, yet August 2009 saw just 1 sale in this affluent price band. Among the sales last month, was a $5.1 million trade in Belvedere (an amazing home on a double lot on the Belvedere Lagoon) and an off-market $8 million Kentfield (both buyers and sellers were represented by my company). The reasons for the slowdown in sales is no mystery, so too are the reasons we will eventually return to normalcy. First and foremost, the economy must give reason for optimism and the stock market must continue to win back gains lost over the past year. Once some of those gains are recaptured, affluent buyers will feel more comfortable with major purchases again. And it looks like we are heading in that direction — last week, Ben Bernanke noted that the recession is likely over and the Wall Street Journal (a media source which is not-so-subtly slanted against real estate investment) noted that real estate “has rarely looked better” — click HERE for article. Also, for a detailed snapshot of current national trends from the Institute for Luxury Home Marketing dated September 13, 2009, click HERE.  And if you would like a hyper-local report relating to any town or zip code in Marin or San Francisco, call me at (415) 350-9440.
The below graph tracks asking prices for 3 “hot” locales in Marin — Tiburon/Belvedere (they are combined here because they use the same zip code), Mill Valley, and Kentfield. Interestingly, while Belvedere continues to see asking prices drop, Kentfield and Mill Valley have seen asking prices increase over the 60 days (although still lower than last year at this time).

The year over year inventory levels in Mill Valley have hovered at around 20% since May 2009 (much improved from a nearly 60% inventory increase in February 2009). Meanwhile, inventory in Kentfield has doubled this year compared with last year. In combination, Tiburon and Belvedere inventory levels are about 80% higher than last year.

The graph below reflects a 90-day rolling average of asking prices for homes in the topmost quartile (e.g. prices of the most expensive homes) in 3 touchstone Marin County cities: Tiburon, Mill Valley, and Kentfield. As you can see, over the past year, prices have declined, although asking prices appear to have leveled in all 3 towns.
Below is a new chart focusing on the percentages of homes in Tiburon and Mill Valley that have experienced price reductions, as well as a look at how deep those reductions have been, on average.

Real Estate Market Chart by Altos Research www.altosresearch.com

$2 Million to $4 Million Luxury Homes
Summertime is a traditional slow season for Marin real estate because many families focus more on vacations than on home buying. While buyer activity has picked up significantly, home sales in August 2009 were limited to seven. It seems that there is a lot of home shopping going on, but not a whole lot of sales (this August we had 62% fewer sales than one year ago). Inventory remains low with 133 homes on the market between $2 million and $4 million.
Cities recording sales in this price band included: Ross, San Rafael, Novato, Larkspur, Corte Madera, Tiburon, and Sausalito. These homes averaged 123 days on market. Their average sales price was $2.542 million (roughly $655 per square foot), with an average of 4,195 square feet. The absorption rate for Marin homes in this price band is up to 19 months.
$4 Million & Up Ultra-Luxury Homes
The inventory level of Marin County’s ultra-luxury market (homes priced in the $4 million and up range) remained virtually unchanged with 56 homes for sale. The highest concentrations of homes in this price band are Tiburon, Belvedere, and Ross. As noted earlier, Marin County saw just two sales last month — a spectacular Belvedere Lagoon home which sold for over $5 million and an off market sale of a Kentfield estate. There is another Belvedere home currently in escrow. Marin cities and towns with homes priced over $4 million include Tiburon, Belvedere, Sausalito, Kentfield, Ross, Mill Valley, San Rafael, and Novato.

Marin Cities & Towns

$2 Million — $4 Million

$4 Million & Up

Active

Pending

Active

Pending

Sausalito

13

0

7

0

Belvedere

18

3

11

1

Tiburon

33

2

22

0

Mill Valley

30

3

5

0

Larkspur

3

0

0

0

Corte Madera

0

0

0

0

Kentfield

10

3

3

0

Greenbrae

1

1

0

0

Ross

9

1

6

0

San Anselmo

7

0

0

0

San Rafael

7

0

1

0

Novato

5

0

1

0

The above graph identifies the numbers of active listings and homes in contract in the Marin County luxury ($2 million to $4 million) and ultra-luxury ($4 million and up) home market segments. Note that all homes in contract are included in the category “Pending” even though some are technically “Contingent” properties (e.g., the buyers have not removed all contingencies). This information is limited to Marin County’s Highway 101 corridor towns and cities that consistently maintain a monthly inventory of luxury and ultra-luxury homes (Western Marin coastal homes are not included).By: Kyle Frazier, Marin Realtor & CRS, Broker Associate, Morgan Lane Marin Real Estate, at 415/350-9440 for more luxury home market information. You can also e-mail Kyle at mailto:Kyle@ImagineMarin.com.

For help finding the perfect home for your lifestyle, Click HERE, fill out the confidential Home Preferences Survey, and Kyle will personally call you for a consultation.

Marin County, California, Luxury Homes Report (August 2009–Sales and Inventory Analysis)

Marin County, CA’s luxury real estate market segment continues to take shape in the aftermath of the equities meltdown of Fall 2008. In our New Economy, buyers are placing emphasis on prestige locations, sweeping views, grand appointments, compelling “estate history,” and impressive scale. The luxury market in Marin remains weighted towards homes priced under $4 million, although we did have 3 sales of homes priced over $4 million in July 2009. The number of sales in July 2009 is off by 74% from July 2008. The news is not all negative, however, as we had several significant properties trade last month and another 30 luxury homes are currently in escrow. For a detailed snapshot of current national trends from the Institute for Luxury Home Marketing dated August 2, 2009, click here. Note, if you would like a local report relating to any town or zip code in Marin or San Francisco, call me at (415) 350-9440.

Buyers remain dubious of price stability for good reason (see chart below reflecting year over year median asking prices in Tiburon, Mill Valley, and Kentfield). But, increased conforming loan limits and a pronounced level of increased affordability across the board should help sales moving forward into the Fall as buyers with 25% down will obtain top-shelf financing for purchases of $1.6 million. While not necessarily “Luxury” territory here in Marin (although declining prices are putting some very nice homes into the sub-$2 million price bands), a sizable segment of buyers of luxury homes must sell their current homes first (80% of buyers are sellers). The chart below indicates that across the trend in Marin’s luxury segment is for lower prices — 10-25% lower than last year in Mill Valley, Belvedere, and Kentfield. 

The year over year inventory levels in Mill Valley have hovered at around 20% since May 2009 (much improved from a nearly 60% inventory increase in February 2009). Meanwhile, inventory in Kentfield has rocketed nearly 90% higher this year compared with last year. In combination, Tiburon and Belvedere inventory levels are about 70% higher than last year. Prediction: Kentfield and Tiburon / Belvedere prices will continue to recede through Q4 2009. Indeed, we can see that trend has set in dramatically in the above chart which tracks asking prices of homes currently for sale.  

Among the sales last month, was a $9.8 million trade in Kentfield after just 3 days on the market. Our agents are noting a more focused approach by buyers. In addition, Carlos Santana’s San Rafael estate sold last month after just a couple of weeks on the market. Indeed, we are also starting to see buyers lose out on properties they loved because they assumed there was no urgency in writing an offer.
 
The graph below reflects a 90-day rolling average of asking prices for homes in the topmost quartile (e.g. prices of the most expensive homes) in 3 touchstone Marin County cities: Tiburon, Mill Valley, and Kentfield. As you can see, over the past year, prices have declined, although asking prices appear to have leveled in all 3 towns.

 Below is a new chart focusing on the percentages of homes in Tiburon and Mill Valley that have experienced price reductions, as well as a look at how deep those reductions have been, on average.

Real Estate Market Chart by Altos Research www.altosresearch.com

The definition of this market stat is: “Percentage of homes on the market that have decreased their asking price at least once over the past 90-day period.” In any market, even in strong seller’s markets, there will always be some number of properties that will decrease their listing price. These may include sellers that drastically overpriced their homes just “to see what they could get” or homes that simply entered the market at a price level above what the market will bear.

Even in strong seller’s markets, the Percent Price Decreased will be 10-12%, so some repricing of individual properties is common in any market. In weaker markets, this value begins rise into the teens, 20%, 30%, and higher. Percent Price Decreased is an incredibly insightful gauge of demand levels in the residential housing market. This statistic illustrates how many listed properties may be behind the “price curve” – listed at a price above what the market is willing to pay for similar properties. However, “Percent Price Decreased” alone does not indicate the overall health of a particular market. This statistic should be combined with other market stats to determine the overall direction of a market.
 
$2 Million to $4 Million Luxury Homes
Summertime is a traditional slow season for Marin real estate because many families focus more on vacations than on home buying. While buyer activity has picked up over the past week, home sales in July 2009 were limited to six. It seems that there is a lot of home shopping going on, but few sales. Inventory has dipped to 126 homes on the market between $2 million and $4 million (down from 135 last month, but up from 110 in March).
 
Quick recap of 2009: Since the emergence of the “new economy” (post-October 2008), sales numbers in this price band are down. For example, there were 18 sales in October 2008 (a relatively strong time of year for sales and, of course, these buyers were well into their escrow periods at the time of the meltdown). Then, by February 2009, sales dipped to just 2. As things began to improve in April & May 2009, sales bumped up to 8. And June 2009 was relatively strong with 16 sales. Although that number fell to just 6 in July 2009, I believe we will pleased in coming months with sales numbers. Today, there are 25 homes in escrow in this price band. That portends stronger sales months to come.  
Cities recording sales in this price band included: Belvedere (2), Kentfield (1), Ross (2), and San Rafael (1). These homes averaged 61 days on market. Their average sales price was $2.993 million (roughly $747 per square foot), with an average of 4,177 square feet. As noted above we also have a stockpile of homes in the escrow pipeline, including homes in Belvedere (5), Tiburon (4), Sausalito (2), Mill Valley (4), Corte Madera (1), Larkspur (1), Ross (3), and Kentfield (3), and San Rafael (1). The absorption rate for Marin homes in this price band is up to 21 months. Most sellers seem to understand that they must position their home at the head of the line when it comes to pricing if they want to sell. 
$4 Million & Up Ultra-Luxury Homes
The inventory level of Marin County’s ultra-luxury market (homes priced in the $4 million and up range) remained static with 54 homes for sale. The highest concentrations of homes in this price band are Tiburon, Belvedere, and Ross. Recent activity in this price band is improved. Marin County saw three homes sell last month, including a $9.8 million sale Kentfield, Carlos Santana’s San Rafael estate, and a spectacular Belvedere home. Moreover, there are an additional 5 homes currently in escrow in this price range (including 2 in both Belvedere and Ross). Marin cities and towns with homes priced over $4 million include Tiburon, Belvedere, Sausalito, Kentfield, Ross, Mill Valley, San Rafael, and Novato. The absorption rate for these homes is 18 months.  

Marin Cities & Towns

$2 Million — $4 Million

$4 Million & Up

Active

Pending

Active

Pending

Sausalito

12

2

7

0

Belvedere

26

5

10

2

Tiburon

20

4

21

1

Mill Valley

30

4

4

0

Larkspur

2

1

0

0

Corte Madera

0

1

0

0

Kentfield

11

3

2

0

Greenbrae

2

0

0

0

Ross

6

3

8

2

San Anselmo

6

0

0

0

San Rafael

6

1

1

0

Novato

5

0

1

0

The above graph identifies the numbers of active listings and homes in contract in the Marin County luxury ($2 million to $4 million) and ultra-luxury ($4 million and up) home market segments. Note that all homes in contract are included in the category “Pending” even though some are technically “Contingent” properties (e.g., the buyers have not removed all contingencies). This information is limited to Marin County’s Highway 101 corridor towns and cities that consistently maintain a monthly inventory of luxury and ultra-luxury homes (Western Marin coastal homes are not included)

Call Kyle Frazier, Marin Realtor & CRS, Member of Institute of Luxury Home Marketing, Broker Associate, Morgan Lane Marin Real Estate, Pacific Union International, Christie’s Great Estates of Marin, 415/350-9440 for more luxury home market information. You can also e-mail Kyle at mailto:Kyle@ImagineMarin.com.

Marin County, California, Luxury Homes Report (July 2009–Sales and Inventory Analysis)

Marin County, CA’s luxury real estate market segment is slow and remains weighted towards homes priced under $4 million — just one home priced over $4 million sold in June 2009 and it was an off-the-market sale. The number of sales in June 2009 is off by over 40% from June 2008, yet the average price of sold homes is down just 3% from last year. In Marin, only the homes with special locations, views, or features seem to be getting significant attention. For a detailed snapshot of current national trends from the Institute for Luxury Home Marketing dated July 19, 2009, click here. Note, if you would like a local report relating to any town or zip code in Marin or San Francisco, call me at (415) 350-9440. Yet, the news relating to home starts and permit applications is again improved this month. As earnings reports come in for Q2 and the stock market has found some hope in the numbers, it does not appear that such developments consitute the siren call buyers seek. 

As noted last month, buyers remain dubious of price stability for good reason. But, increased conforming loan limits and a pronounced level of increased affordability across the board should help sales moving forward into the Summer as buyers with 25% down will obtain top-shelf financing for purchases of $1.6 million. While not “Luxury” territory here in Marin, a sizable segment of buyers of luxury homes must sell their current homes first (80% of buyers are sellers). The chart below indicates that across the trend in Marin’s luxury segment is for lower prices — 10% to 28% lower than last year in Mill Valley, Belvedere, and Kentfield.

The year over year inventory levels in Mill Valley have hovered at around 20% for the past couple of months. Meanwhile, inventory in Kentfield has rocketed to 60% higher than last year. Belvedere is 75% higher than last year. Prediction: Kentfield and Belvedere prices will continue to recede markedly through Q4 2009. Indeed, we can see that trend has set in dramatically in the above chart.

Despite the apparent slowdown, open houses have been extremely busy. Offers are being written. And our agents are noting a more focused approach by buyers. One listing in our office, priced at over $10 million went into escrow last week after just 3 days on the market. We are also starting to see buyers lose out on properties they loved because they assumed there was no urgency in writing an offer. The graph below reflects a 90-day rolling average of asking prices for homes in the topmost quartile (e.g. prices of the most expensive homes) in 3 touchstone Marin County cities: Tiburon, Mill Valley, and Kentfield. As you can see, over the past year, prices have declined, although asking prices appear to have leveled in Mill Valley and Tiburon.

 

Below is a new chart focussing on the percentages of homes in Tiburon and Mill Valley that have experienced price reductions, as well as a look at how deep those reductions have been, on average.

Real Estate Market Chart by Altos Research www.altosresearch.com 

The definition of this market stat is:

“Percentage of homes on the market that have decreased their asking price at least once over the past 90-day period.” In any market, even in strong seller’s markets, there will always be some number of properties that will decrease their listing price. These may include sellers that drastically overpriced their homes just “to see what they could get” or homes that simply entered the market at a price level above what the market will bear.

Even in strong seller’s markets, the Percent Price Decreased will be 10-12%, so some repricing of individual properties is common in any market. In weaker markets, this value begins rise into the teens, 20%, 30%, and higher. Percent Price Decreased is an incredibly insightful gauge of demand levels in the residential housing market. This statistic illustrates how many listed properties may be behind the “price curve” – listed at a price above what the market is willing to pay for similar properties. However, “Percent Price Decreased” alone does not indicate the overall health of a particular market. This statistic should be combined with other market stats to determine the overall direction of a market.

$2 Million to $4 Million Luxury Homes

Historically, the Summer has been slow for Marin real estate because many families focus more on vacations than on home buying. But nothing has gone according to historical precedent in 2009. And this year buyers seem to be spending time between school years focussing on locating the perfect home at a value price. Inventory hovers at 135 homes on the market between $2 million and $4 million (down from 143 last month, but up from 110 in March).

Quick recap: Since the emergence of the “new economy” (typically identified as post-October 2008), sales numbers in this price band are down overall, but improving. For example, there were 18 sales in October 2008 (a relatively strong time of year for sales and, of course, these buyers were well into their escrow periods at the time of the meltdown). Then, by February 2009, sales dipped to just 2. As things began to improve in April & May 2009, sales bumped up to 8. The first 3 months of 2009 were simply abysmal. Overall, the past six months were the worst we have seen in 16 years. 

Yet, June 2009 was realtively strong with 16 sales and today we have an additional 18 homes in escrow. To sustain the apparent transition, we will need to see a sustained level of demand. May and June 2009 activity may represent the beginning of this recovery. However, the current rally described here applies only to units sold, not price appreciation.

Cities recording sales in this price band include: Tiburon (3), Belvedere (1), Mill Valley (3), Larkspur (1), and Kentfield (1), Ross (4), San Rafael (1), and Novato (1). These homes averaged 70 days on market. Their average sales price was $2.6 million (roughly $714 per square foot), with an average of 3,769 square feet. We also have a good number of homes in the escrow pipeline, including homes in Belvedere (4), Tiburon (5), Mill Valley (2), Ross (2), and Kentfield (2), and San Rafael (1), and Novato (1). The absorption rate for Marin homes in this price band is reduced to just under 10 months (down from nearly 18 months). Sellers must position their home at the head of the line when it comes to pricing if they want to sell.

$4 Million & Up Ultra-Luxury Homes

The inventory level of Marin County’s ultra-luxury market (homes priced in the $4 million and up range) remained static with 55 homes for sale. The highest concentrations of homes in this price band are Tiburon, Belvedere, and Ross. As referenced above, there was just one sale last month — an off-the-market sale of a spectular home for $5 million in Mill Valley’s Country Club neighborhood. We have 2 homes currently in escrow in this price range. Marin cities and towns with homes priced over $4 million include Tiburon, Belvedere, Sausalito, Kentfield, Ross, Mill Valley, San Rafael, and Novato. The absorption rate for these homes cannot be accurately stated as the number of sales is too low to be meaningful.

Marin Cities & Towns

$2 Million — $4 Million

$4 Million & Up

Active

Pending

Active

Pending

Sausalito

13

1

7

0

Belvedere

26

4

11

0

Tiburon

20

5

20

1

Mill Valley

30

2

4

0

Larkspur

3

0

0

0

Corte Madera

1

0

0

0

Kentfield

12

2

3

0

Greenbrae

1

0

0

0

Ross

8

2

7

1

San Anselmo

7

0

0

0

San Rafael

7

1

2

0

Novato

6

1

1

0

The above graph identifies the numbers of active listings and homes in contract in the Marin County luxury ($2 million to $4 million) and ultra-luxury ($4 million and up) home market segments. Note that all homes in contract are included in the category “Pending” even though some are technically “Contingent” properties (e.g., the buyers have not removed all contingencies). This information is limited to Marin County’s Highway 101 corridor towns and cities that consistently maintain a monthly inventory of luxury and ultra-luxury homes (Western Marin coastal homes are not included).By: Kyle Frazier, Marin Realtor & CRS, Broker Associate, Morgan Lane Marin Real Estate, at 415/350-9440 for more luxury home market information. You can also e-mail Kyle at mailto:Kyle@ImagineMarin.com.