Median dwelling worth drops to $1.51 million

The median worth of a indifferent dwelling in Marin has fallen to $1.51 million, a year-over-year decline of 11%, in line with new information from the county assessor’s workplace.

The info are based mostly on market exercise for August. For condominiums and townhomes, the median worth fell to $794,000 final month, down 9% from $875,000 the earlier August.

Regardless of the value declines and better rates of interest, 52% of the properties bought in Marin final month went for above the asking worth, stated Naomi Thorne, a Coldwell Banker Realty agent whose workplace is in Greenbrae. The determine is sort of unchanged from August 2022, she stated.

Thorne stated the value reductions have a tendency to come back with much less fascinating properties, however these in wonderful situation are nonetheless drawing a number of provides. She was the itemizing agent for a four-bedroom dwelling on Orange Blossom Lane in Terra Linda that bought final month for $1.51 million, proper on the county median.

“Persons are nonetheless out, they’re nonetheless prepared and prepared to compete for the best home,” she stated. “The Marin market — you may’t kill it. Individuals need to purchase properties, and so they’re in a position to, and so they’ll regulate.”

Joe Burns, a Vanguard Properties agent based mostly in Mill Valley, stated that even with the value declines, elevated rates of interest imply many new patrons most likely have larger month-to-month funds than patrons did final summer season. Yr-over-year information present that the typical month-to-month funds patrons are prepared to simply accept now would have been sufficient for a $2.2 million dwelling a few 12 months in the past, he stated.

This implies the market will readily settle for escalating dwelling costs when rates of interest ease, Burns stated.

“Until there’s a drastic change to the general financial system, or wages, then we might count on that, if charges had been to drop, there are many patrons that would outbid one another again as much as $2.2 million,” he stated. The median dwelling worth in Marin hit $2.12 million in April 2022 earlier than starting its descent.

The U.S. weekly common for a 30-year fixed-rate mortgage was 7.19% as of Thursday, up from 7.18% the prior week, in line with Freddie Mac, the federally chartered mortgage firm. A 12 months in the past, the typical was 6.29%.

The California Affiliation of Realtors, in an annual market forecast launched Wednesday, stated it expects mortgage charges and inflation to say no in 2024, fueling a 6.6% enhance in median dwelling costs statewide. The affiliation expects median values for indifferent properties to say no 1.5% this 12 months in comparison with 2022.

The affiliation additionally expects the variety of gross sales to rise about 23% subsequent 12 months.

“With the financial system anticipated to melt in 2024, the Federal Reserve Financial institution will start loosening its financial coverage subsequent 12 months,” stated Jordan Levine, the affiliation’s chief economist. “Mortgage charges will development down all through 2024, and the typical 30-year fastened charge mortgage might attain the mid-5% vary by the top of subsequent 12 months.”

“Consumers may have extra monetary flexibility to buy properties at larger costs, which might generate elevated housing demand and end in extra upward strain on dwelling costs,” Levine stated.

Statewide, the median worth for indifferent properties was $859,800 final month, up 3% from the prior August, the affiliation reported Monday. Within the Bay Space, the median was $1.26 million, a year-over-year acquire of 5%.

In accordance with the Marin assessor’s workplace, median costs for indifferent properties in particular elements of the county final month included $4.43 million on two gross sales in Sausalito; $3.75 million on eight gross sales in Tiburon; $3.43 million on two gross sales in Belvedere; $2.8 million on 5 gross sales in Mill Valley; and $2.21 million on six gross sales in Larkspur.