February 2023 in Marin, “What is the DEAL?”
February is here in Marin and it will be a very interesting month, indeed. Reservoirs are filling up to their maximum here, likely ending the drought soon, but the drought of new inventory continues to stifle the housing market. As of today, there are only 117 total homes on the market, down from what we all thought was the absolute low of 127 a month ago. That’s all the single family homes in the entire county, which isn’t much considering we have approx 260,000 people. This would lead one to wonder how 2023 might look and a question I often get, which is, “What is the deal with home prices this year”? My stock answer is a brilliant one, as always, with “I will let you know six months from now”, as my crystal ball broke back in ’88 and has yet to be replaced. But if I had one word to describe the forthcoming months in Marin, it would have to be balanced.
Look for more homes to come on the market, for starters. Few sellers (or agents) like to go up for sale when it’s dumping with rain, as it has been here. Once the sun comes out starting next month, we’ll see more For Sale signs pop up, but many folks try to be ahead of that and will sell beginning this month and on into our busy spring/summer selling season. But nobody is predicting a frenetic buying frenzy like in 2021, at least not for every home. Prices are forecast to go up 7% for the year, which sounds right, but we’ll see.
Once those homes do hit the market, watch for the same mantra to continue for those that DO sell. Right property, right condition, right preparation, right price…SOLD, with more than one offer, even. If they were able to be sold last year with mortgage rates around 7%, they will sell this year with them around 6%. Not that anybody gets a 30 year fixed these days. Most opt for a 5, 7 or 10 year fixed, aiming to refinance down the road. But buying should be steady, but we’ll see. Read this blog in July and see how right I was, or wasn’t.
That’s it for now. Until next time, enjoy February and all of 2023 wherever you are and please stay safe. As always, thanks for reading.