December in Marin: Inventory Drops to Record Lows, But Some Bargains Still Exist

December is here in Marin and it looks like a chilly and wet winter, at least if the last few weeks are any guide. Cold temps (by California standards) greeted residents nearly every morning last month with more on the way, along with quite a few storms, so they tell us. Snow fell on the sierras early also, with nearly a foot at lake level, which we haven’t seen for awhile. Most Tahoe ski resorts were able to open the week before Thanksgiving, which we also haven’t seen in quite a few seasons. Let’s hope it’s a great year for skiers, much like it’s been a great year for homeowners pretty much throughout the state.

For the year, we have seen only 2083 homes sold, totaling $3.1 bil. That’s down 100 homes from this time last year. The average price climbed to nearly $1.5 mil with the median being $1.1 mil. Both of those numbers are up slightly, $100k. None of this is any surprise to anyone keeping track and we are well-positioned to see the same market next year as more people want to live here than don’t.

Even though inventory is typically low in mid winter, it tends to be a good time to buy as most buyers are off doing other things. So if you’re willing to jump in the car on a cold and rainy day, it could save you big $$$ after the spring run up in pricing that we always see March-July.

For investors, the best place to invest remains to be the low end in any of our twelve towns, including condo’s and townhomes. With rents also projected to continue up another 9% and mortgage rates still stupidly cheap, we are seeing owners rent their properties out at break even with just 25% down on anything under $1 mil in purchase price. We also don’t see rents dropping anytime soon, but it’s still cheaper than SF where $3,000 a month might get you a 1 br apartment if you’re lucky.

That’s it for now. Please stay warm and enjoy December wherever you are. Any questions, let me know how I can help. I’m around all month.

TS

Text or call 415.377.5222 or ted@gomarin.com

Filed under: Marin Real Estate Blog by Ted Strodder