The Marin County real estate market is hot again. We are seeing multiple offers on many homes and condos. It looks like the deep price reductions along with first time home buyer tax credits and historically low interest rates have buyers bidding in droves.
One measure of how “hot” a real estate market is what percentage of homes on the market are in escrow. A common formula is:
Buyer’s Market: less than 25% of home in escrow
Neutral Market: 25 to 40% of homes in escrow
Seller’s Market: more than 40% of homes in escrow
The hot price range in Marin is anything $600,000 or less. That is where we have 52% of available listings in escrow. The next price jump from $600,000 to $800,000 is also doing well at 33%
As we move up the price range the picture changes. From $800,000 to one million the figure is 22%, a buyer’s market. Homes at one to one and one half million are 17% and over 1.5 million just 9% are in escrow.
Those numbers include condominiums and homes combined. When we lump all price ranges together Marin has 28% in escrow which is higher than we have seen for well over a year. I don’t know how this will play out with the “talked about” last wave of foreclosures but Marin has not been hit nearly as hard as other counties anyway.
My view is if you are looking for a high end home the prices are dropping but if you are in the lower price range waiting to buy will just cost you more money.