As most of you have read and heard the real estate market is suffering through one of the worst recessions in decades. Most of the sales activity is happening in the lower entry level price points where short sales and foreclosures dominate the market. Investors and first time buyers are snapping up these properties because interest rates are at historical lows and they can buy at around 50 cents on the dollar (i.e.2 bedroom Novato condos that previously sold for $500,000 are now going for $250,000). The $1 million to $3 million price range has been stagnant since the fourth quarter of 2008. For example, in Tiburon and Mill Valley, there are 127 properties listed between $1 and $3 million and only 12 of these properties are under contract (<10%). This situation has had a negative impact on our sales volume in Southern Marin. However, I believe the market will get gradually better and there are indicators of improvement.

Interestingly, above $3 million has had an active start to 2009. There have been 11 pending sales since the end of February and of those, six have closed escrow. 9 Rolling Hills (Tiburon) closed on March 17th for $9,000,000 ($1204/ft) and 30 Peninsula (Belvedere) closed on March 24th for $4,900,000 ($1430/ft). The average price per foot for all of these sales is $1050. For Tiburon/Belvedere and Mill Valley there were forty one $3 million plus sales in 2008. In 2007 there were 68 and in 2006 there were 46. The 2009 rate of sales should end up with about forty four $3 million plus sales (or more) which is right in line with the 2008 and 2006 figures. Most of these buyers pay cash for these properties and they are very discriminating.

A luxury buyer prospect asked me why the luxury market was relatively thriving while the rest of the market struggled. The one word answer is LOCATION. It is much more complicated than that, but it always starts with location. Many wealthy buyers gravitate to Southern Marin for the schools, views, weather, proximity to San Francisco and overall quality of life. We have very few “trophy properties” available in Southern Marin at any given time. These are unique properties in one of the most sought after locations in the world. Many of these properties cannot be found anywhere else. Many of the buyers own multiple homes. The good news is that, if you have a high quality luxury home in Southern Marin and need or want to sell, we will find a buyer!

Check out these extraordinary properties we have listed. www.2tamalpaisave.com and www.321summitavenue.com.

Coming soon: 85 Spring Lane, Tiburon which has every amenity demanded by today’s luxury buyer. This remarkable remodel includes 7500 Sq ft on over an acre of fully landscaped and utilized yard. This property is situated on one of the most desirable sites in Tiburon plus has world class views of San Francisco and the bay. See future blogs for a completion date, marketing and photos. It should be ready in about 6 to 8 weeks.


Posted By: Andy Gellepis