Marin Quarterly Market Snapshot | Q2 2017
After a slight pause, US equity markets continued higher in June delivering the best quarterly earnings growth in five years. Bonds offered a different narrative. After falling since March, interest rates saw a sharp spike upwards at the end of June as investors responded to a less dovish tone from European central bankers. The US economy continues to offer a Goldilocks-like scenario of low unemployment, benign growth, and low inflation. However, given the tight labor market, the Federal Reserve (Fed) raised rates again in June and remain on track for 1-2 more increases this year.
In the first quarter of this year alone, household net worth climbed by $2.3 trillion and it is now a record $94.8 trillion, or five times GDP. This is much higher than during the housing or dotcom booms and no doubt a contributing factor to the record consumer confidence figures.
In Marin County, the single family home market Q2 figures reflect an increase of inventory, Percentage of Homes in Contract and Numbers Sold, while Days on Market decreased. Average Price Sold had a slight increase in Q2 to $1,622,175, up 3% from Q1 and up 1% compared to the same quarter last year.
Number of Homes Sold
With 629 sold, Marin single family homes sales were up 123% from Q1 2017, and down 3% compared to the same quarter last year. Increased inventory, following a weather-hampered Q1 and an increasingly positive economic outlook, helped to fuel the Number of Homes Sold in Q2.
Average Price Sold
The Average Sale Price of Marin single family homes increased in Q2 2017 compared to Q1 2017, at $1,622,175 and $1,575,411, respectively. Compared to the same quarter last year, the Average Sale Price remained relatively unchanged, increasing by just 1%.
Home Sales by Area
Novato and San Rafael continue to see the highest Number of Homes Sold in June at 39 each, with Mill Valley not far behind with 26 sold. San Anselmo had a notable number of homes sold at 22, while Greenbrae (2) and Larkspur (7) saw a slowdown in home sales compared to Q1 and early Q2.
In Contract by Area
At the end of Q2, Corte Madera had 58% of Homes in Contract recorded in June, followed by Larkspur (53%), Greenbrae (50%) and Novato (49%). San Rafael, Mill Valley and Fairfax also had a high percentage of homes in contract, at 48%, 45% and 42%, respectively. In contrast, less active markets were Belvedere (7%) and Tiburon (17%).
Sales by Price Point
In Q2, the highest number of homes, both available (415) and sold (299), were between $1-2 million. There were 139 homes sold between $750,000 and $1 million, while 85 homes sold in the $2-3 million price range. A notable 17 homes sold between $4-5 million. There were only 7 homes sold at $5 million or higher.