Marin Luxury Homes (December 2008)

December 15, 2008 by  

Ponzi schemes, equity markets, banking woes, mounting unemployment, diminished home values and equity, generalized fear, and a palpable spending paralysis continue to weigh down and negatively impact luxury real estate sales in Marin County, California. I struggle to find the appropriate adjective to describe Marin County’s current luxury home market. Torpid? Sluggish? Drowsing? You get the idea. The same holds true nationwide as caution and prudence carry the day.

There are 85 homes on the market between $2 million and $4 million. As predicted in last month’s update, November sales slowed significantly following the mid-September meltdown in the financial sector–there were only 5 sales (down from 19 in October). Each of the following cities or towns had one sale: Mill Valley, San Rafael, Tiburon, Belvedere, and Kentfield. The average days on market for the homes that sold was 80 days and the average sales price was just over $2.58 million (roughly $849 per square foot), with an average of 3,209 square feet. Belvedere and Tiburon have 5 and 3 homes, respectively, currently in escrow.

The inventory level in Marin County’s ultra-luxury market (homes priced in the $4 million and up range) has again dropped precipitously (as is common this time of year). There are now 34 active listings, compared with 49 in November. Belvedere and Tiburon provide a large percentage of our ultra-luxury homes. Other cities / towns with homes in this price band include Kentfield, Sausalito, Mill Valley, Ross, San Rafael, and Novato. Somewhat surprisingly, there were no sales last month (we can usually expect at least 3 sales per month during the slow season). Further underscoring the pervasive caution gripping buyers, we currently have no ultra-luxury homes in escrow.

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