According to the Los Angeles Times, home sales were down overall statewide last year, but they were up 21% in the $1-million-and-up category, according to a report released Friday by DataQuick Information Systems.

Over 22,000 California homes sold in the million-dollar-plus price range last year, up from 18,621 the previous year. Why? Reasons included greater availability of jumbo loans, the stock market rebound and buyers’ desire to get in while prices are still low.

The jump in million-dollar-plus sales compares with a 9% drop in overall home sales statewide.

Among last year’s million-dollar-plus sales, 463 homes sold for more than $5 million, 304 in the $4-million-to-$5-million range, 782 in the $3-million-to-$4-million range and 2,333 in the $2-million-to-$3-million range.

Posted by:  Judy LeMarr

In spite of some generally negative news regarding residential real estate from the National Media, Southern Marin real estate ended 2010 with very positive numbers and that bodes well for 2011. We keep hearing nationally, projections of a 10% decline in prices and for California declines of 4% for 2011. These numbers come from The Case/Schiller Home Price Index and NAR and CAR. Interestingly, Case/Schiller had 20 Metro Areas with declining values. The one exception was The San Francisco Bay Area where they projected a 2.2% rise in average values. In Marin County, home sales were up 7% for 2010 and median prices were up 4.5% and the average price was up 6%. Marin County Stats were buoyed by Southern Marin. For example, in Mill Valley sales volume was up almost 11% and median price increased 4.4%(for 2010), modest but moving in the right direction. Tiburon sales volume was up over 50% and prices gained almost 5%. Belvedere reported sales volume up 45.5% and Sausalito volume up 15.6% during 2010. This momentum is carrying over into 2011. Currently, we have low inventory, low interest rates and pent up demand as evidenced by the high sales volume at the end of 2010. Financing will continue to be tight, however, qualified buyers (20% down and good FICO scores) are stepping up and taking advantage of near record low rates, and they are closing transactions. In Southern Marin, we are surrounded by the Pacific Ocean and the San Francisco Bay, plus 85% of our land is open space. This restricts the supply of available housing and historically, we have experienced that high end buyers choose Marin.

You can find the above statistics and many more by going to www.fhallen.com and clicking on City Reports. For each city in Marin you can get the number of homes sold, median sale price, month’s supply of inventory and more useful data. This gives you a snap shot of your city and the data is updated monthly. Check it out.

The high end luxury market continues at a slow but steady pace. There were five sales in excess of $5 million during the fourth quarter 2010 in Marin. Frank Howard Allen has two amazing high end luxury properties for sale that we expect to get into contract in the first quarter of 2011. Check out www.85springlane.com and www.321summitavenue.com for a tour of two of the finest luxury properties Marin has to offer. Check for Sunday open houses on these extraordinary properties at www.fhallen.com.

Posted by:  Andy Gellepis

There is a common theory that the home values on the coasts are highest and they diminish by the time you get to middle America.

According to www.CNNMoney.com, that theory stills hold true. The highest values are on all three coasts, Left (aka East), Right (aka West) and the best of all, Hawaii. What that means is that these areas are also the least affordable, not good if you practice real estate in these communities or are looking to buy real estate in these communities.

So here is the list:

1. San Francisco, California
Median Home Price: $625,000
Median Income: $ 96,800
Affordability Score: 22%

2. Honolulu, Hawaii
Median Home Price: $450,000
Median Income: $ 79,300
Affordability Score: 33.8%

3. Santa Ana, California
Median Home Price: $435,000
Median Income: $ 86,100
Affordability Score: 34.5%

4. New York, New York
Median Home Price: $425,000
Median Income: $ 64,800
Affordability Score: 19.7%

5. Los Angeles, California
Median Home Price: $320,000
Median Income: $ 62,100
Affordability Score: 36.8%

Posted by:Judy LeMarr

Despite the ongoing rain, the real estate market has blossomed for spring. This is evidenced by a substantial increase in activity, more listings, more sales, more closings and more traffic visiting our listings at weekend open houses and private showings. This activity is being driven by quality inventory which I define as, well-located and well-priced homes in desirable locations. Inventory as of March 1, 2010 is still running behind March 1, 2009 listings. On the other hand, closings through March 1, 2010 are 258 compared to 193 during the same time frame in 2009. The percentage in contract (number of homes under contract as a percentage of total homes available) as of March 1, 2010 is 41% versus 30% last March 1. These numbers are significant because they reflect the fact that buyers are making offers on our quality inventory this year as opposed to “waiting for prices to drop” last year. This is also an indicator that buyers believe that the market has bottomed out.

 

Frank Howard Allen, Mill Valley is doing its part to launch the spring market with several new desirable properties. Please check out www.226juliaave.com, www.81hillsideave.com and www.378woodside.com. It will be a very active spring. The lower-end of the market is most active right now. However, we are starting to gain some momentum in the $1-plus-million market and even the $2-plus-million market. Stay tuned for further updates on how spring plays out.

Posted by:Andy Gellepis

You bet! This time of year is known as Indian Summer – and while the warm weather is still with us, it can be a great time of year to showcase your home, especially in Marin.

Indian Summer is a period of unseasonably warm weather following a cold spell (or a hard frost in other parts of the country with less mild climates). While there are no actual set dates, the warm streaks usually occur during October and November .

The Old Farmers’ Almanac says: Indian summer can occur between St. Martin’s Day (November 11) and November 20. Although there are differing dates for its occurrence, for more than 200 years the Almanac has adhered to the saying, “If All Saints’ brings out winter, St. Martin’s brings out Indian summer.”

And, according to the Farmers’ Almanac, there are two generally agreed-upon criteria for the term “Indian Summer”: Temperatures must be above 70 degrees for 7 days following the autumnal equinox and, in colder climates, it must occur after the first frost.

If you’d like to read more about Indian Summer, this is a fascinating article by weather historian Bill Deedler, examining the history and origins.

While I’m not an expert on the topic, I do know that this time of year brings about beautiful weather in Marin County with no need for sweaters – even in the evening . So if you are debating whether to put your home on the market, now just might be the right time.

Posted by:Judy LeMarr

Marin County real estate statistics for the 1st quarter of 2009 indicate that we have hit the bottom of the market. I say this because prices have declined for one of the few times since we began keeping records in 1965. From 1965 through 2008 prices have appreciated every year except 1992-1993 and 2008. The 1st quarter of 2009 shows a sharp decline in both average and median prices in some of our most desirable communities (i.e. Tiburon/Belvedere and Mill Valley) compared to the 1st quarter of 2008. This price depreciation is offset by an increase in sales volume. For example, Mill Valley had a 25% decline in average price but a 13% increase in the number of homes sold. Historically, when this happens, it typically represents the bottom of the market. Prices decline to a point where qualified buyers recognize prices are at a level they have not seen for several years. Consequently, buyers start making offers and we get some momentum in our market. For all of Marin County, prices declined by 44% and sales volume increased by 17%. This phenomenon started at entry level prices which are up to $500,000. That market is currently very active with multiple offers occurring often. The $500,000 to $1 million price range has picked up significantly in the 1st quarter. The $1 to $2 million price range is improving slowly. The $2 to $3 million range is still stagnant. The over $3 million price point has held its own in this real estate recession. The number of sales over $3 million has been relatively steady since 2003.

This chart shows average prices from 1965 through 2008. As you can see, prices have declined very few times during the last 43 years. 1992-1993 declined minimally (less than 1%). The 2008 drop was fairly steep (about 12 %) and so far 2009 looks like another decline. Historically, when prices have declined or remained flat (see 2001), this short downturn has been followed by a long steady rise in prices (appreciation). Given the fact that demand for Marin real estate is always strong and that our supply is limited, I believe our time at the bottom of this downturn will be short lived.

Therefore, if you are a qualified buyer and you are fortunate enough to find a home that meets your criteria, you should buy it. If not, there could be somebody right behind you ready to submit an offer.

Posted by:Andy Gellepis