Economic Market Overview
Post-election stock market momentum carried over to the New Year and continued through January at a more modest pace. January employment reports showed 227,000 new jobs were added -- well above expectations and the strongest gain since September. These figures combined with a high level of consumer and small business confidence, improving manufacturing statistics, and a rebound in corporate earnings, indicate the economy is continuing its positive trends.
There has been little movement in mortgage interest rates; most recently a slight decline, reversing some of the increases in November and December. This may be the result of weak fourth quarter GDP reading which resulted in a lower average GDP reading overall for 2016 (1.6%), the lowest it’s been since 2011.
The Fed acknowledged the slow growth when they voted to hold the Fed Funds Rate steady at their January meeting, and with inflation below its 2% target, significant increases are not expected in the near term.
Marin Market Snapshot
January was notably slow for Single Family Home sales in Marin County. There were extremely low levels of inventory available throughout the winter. By the end of January there were still only 167 single family homes available throughout all of Marin. Uncertainty about changes in tax codes, interest rates and government administration have also contributed to a tentative sellers’ market.
January brought much needed rain to local reservoirs, however, the inclement weather delayed some of the preparations for new listings which frequently launch after Super Bowl Sunday. We anticipate a very active listing season in the coming months, while cautious sellers and buyers regain confidence.
Number of Homes Sold
Marin Single Family Home sales were down significantly in January, with just 69 sold. The month was down 47% from December, and down 20% compared to the same month last year. The majority of Single Family Homes sold in January were in the price range of $1-1.5 million.
Average Price Sold
The Average Sale Price of Marin Single Family Homes remained relatively unchanged at $1,398,192 in January compared to $1, 393,271 in December. Compared to the same month last year, the Average Sale Price increased 15%, up nearly $180,000. The Average Price Per Square Foot was $603, with home sales ranging from a minimum of $475,000, to a maximum of $5.75 million.
Home Sales by Area
Novato, San Rafael and Mill Valley continue to see the highest Number of Homes Sold at 20, 16 and 13, respectively. Belvedere, Larkspur, Ross and Sausalito had no sales recorded. Average Days On Market ranged from 160 in West Marin, to a swift two in Kentfield.
In Contract by Area
Larkspur had 50% of homes in contract, although no sales were recorded in January. Novato had the highest percentage of homes in contract. Fairfax and Kentfield markets had no homes in contract in January.
Sales by Price Point
The luxury market had only 2 homes sold, one in the $4-$5 million range, one in the $5-$7 million range, and none over $7 million. The $1-$2 million range was the most active in January.