After breaching the $2 million mark in April and May, the median price of a detached home in Marin fell to $1.875 million last month, according to new data released by the county. But that was still a 6.8 percent increase from the previous June.
At the same time, the number of total homes sold in Marin — including detached residences, townhomes and condos — fell more than 25 percent in June from a year earlier, as concerns about rising mortgage interest rates and inflation. The market demand decreased between The county assessor’s office reported 337 home sales last month, compared to 453 in June 2021.
“The Bay Area economy started the second quarter strong in April and early May but took a big downturn in June,” said Kathy Schlegel, a marine agent with Golden Gate Sotheby’s International Realty. “The rise in mortgage interest rates has forced some buyers out of the market and others are waiting to see what happens to prices in Maran.”
Bob Ravasio, a Greenberry-based agent, said the decline in the number of home sales is a step toward a more balanced market after a frantic seller’s market and bidding wars during the pandemic.
“The real estate market in Marin County is clearly slowing,” Ravasio said in an email. “And, as it’s slowing down, we are, by some measures, in a ‘normal’ or balanced market, which is great!”
Sellers need to adjust to the trend and price their homes accordingly as multiple offers dwindle and competition slows, he said.
“The craziness of the last couple of years is quickly receding, but the bottom is by no means falling out,” Ravasio said. “If you’re thinking about selling your home, the key right now is to price it fairly, not necessarily what the neighbor got with 10 offers four months ago, but more ‘normal’ market value.”
Schlegel said he saw a 27 percent increase in the number of new listings in Marin last month as sellers tried to capture the rapid increase in home values and demand over the past few years.
“Many sellers who have waited to sell are now listing their homes to take advantage of the increase in their equity due to the high appreciation levels of the past several years,” he said.
The median is the point at which half the values are high and half are low. In the Marin market, the highest median prices for detached homes last month were in Belvidere, with a median of $4.425 million over three sales. Sausalito, $4 million on seven sales; and Mill Valley, $3.4 million on 23 sales, according to the county.
The California Association of Realtors said the market around the state is cooling. It reported a statewide median home price of $863,790 last month, down 4% from May but up 5.4% from June 2021.
“California’s housing market is moderating from the frenzied levels seen over the past two years, creating favorable conditions for buyers who have made offers during a fiercely competitive market,” said Otto Katrina, president of the association. lose or sit out.” .
“With interest rates rising in recent weeks and fewer homes now selling above list price, potential buyers will have the rare opportunity to see more listings on the market and face less competition,” Katrina said. may force them to engage in a bidding war”. .
Jordan Levine, the association’s chief economist, said June’s sales level was “the lowest since April 2008 — barring a three-month pandemic lockdown period in 2020.”
“Pending sales data also suggests that we can expect a further pullback in the coming months,” Levin said. “With inflation expected to remain high and interest rates expected to rise further in the coming months, the market will further normalize in the second half of the year with softer sales and more moderate price appreciation.”
The U.S. weekly average for a 30-year fixed-rate mortgage was 5.54 percent as of Thursday, according to federally chartered mortgage company Freddie Mac.