Marin real estate: Median home price drops to $1.51 million

According to new county assessor’s office data, the median price of a detached home in Marin has dropped 11% year on year to $1.51 million.

The information is based on market activity in August. The median price for condominiums and townhomes was $794,000 last month, down 9% from $875,000 the previous August.

Despite price declines and higher interest rates, 52% of Marin homes sold last month went for more than the asking price, according to Naomi Thorne, a Coldwell Banker Realty agent based in Greenbrae. She stated that the figure has remained nearly unchanged since August 2022.

According to Thorne, price reductions typically accompany less desirable homes, but those in excellent condition continue to attract multiple offers. She was the listing agent for a four-bedroom Terra Linda home on Orange Blossom Lane that sold last month for $1.51 million, which was exactly the county median.

“People are still out, they’re still ready and willing to compete for the right house,” she said. “You can’t kill the Marin market.” People want to buy houses, and they can, and they will adjust.”

Even with price drops, said Joe Burns, a Vanguard Properties agent in Mill Valley, rising interest rates mean many new buyers will have higher monthly payments than they did last summer. According to year-over-year data, the average monthly payments buyers are willing to accept now would have been sufficient for a $2.2 million home about a year ago, he said.

This suggests that when interest rates fall, the market will readily accept rising home prices, according to Burns.

“Unless there is a significant change in the overall economy or wages, we can expect that if rates fall, there will be plenty of buyers who will outbid each other back up to $2.2 million,” he said. Marin’s median home price peaked at $2.12 million in April 2022 before beginning to fall.

According to Freddie Mac, the federally chartered mortgage company, the weekly average for a 30-year fixed-rate mortgage in the United States was 7.19% as of Thursday, up from 7.18% the previous week. The average was 6.29% a year ago.

In an annual market forecast released Wednesday, the California Association of Realtors predicted that mortgage rates and inflation would fall in 2024, resulting in a 6.6% increase in statewide median home prices. According to the association, median detached home values will fall 1.5% this year compared to 2022.

The association also anticipates a 23% increase in sales next year.

“With the economy expected to soften in 2024, the Federal Reserve Bank will begin loosening its monetary policy next year,” said Jordan Levine, chief economist for the association. “Mortgage rates will continue to fall through 2024, with the average 30-year fixed-rate mortgage reaching the mid-5% range by the end of next year.”

“Buyers will have more financial flexibility to purchase homes at higher prices, which could generate increased housing demand and result in more upward pressure on home prices,” Levine explained.

According to the association, the median price for detached homes in the state was $859,800 last month, up 3% from the previous August. The median price in the Bay Area was $1.26 million, up 5% year on year.

According to the Marin assessor’s office, the median price for a detached home in Sausalito last month was $4.43 million; $3.75 million on eight sales in Tiburon; $3.43 million on two sales in Belvedere; $2.8 million on five sales in Mill Valley; and $2.21 million on six sales in Larkspur.

Other median prices last month included $1.6 million on five detached homes in Corte Madera, $1.58 million on four sales in San Anselmo, $1.56 million on 43 unincorporated area sales, $1.42 million on 26 San Rafael sales, $1.2 million on five Fairfax sales, and $1.1 million on 32 Novato sales.

Based on one sale, the county reported a median price of $1.95 million in Ross.

According to the assessor’s office, detached home sales in Marin fell to 139 last month from 192 the previous August. The county reported 68 condominium and townhome sales last month, compared to 75 the previous August.

According to the California Association of Realtors, median prices for detached homes in San Mateo County last month were $1.95 million, $1.85 million in Santa Clara County, and $1.58 million in San Francisco. The median home price in Alameda County was $1.25 million, with Napa County at $1.06 million, Sonoma County at $850,000, Contra Costa County at $844,440, and Solano County at $599,000.

Marin real estate statistics

The county’s median detached home prices over the last year.

August 20, 2023: $1.51 millionJuly 20, 2023: $1.61 million$1.7 million for the month of June 2023May 20, 2023: $1.8 million1.7 million dollars in April 2023January 2023: $1.67 millionJanuary 20, 2023: $1.53 millionIn January 2023, the cost is $1.6 million.January 2022: $1.5 millionJanuary 2022: $1.54 millionJanuary 2022: $1.68 millionSeptember 2022: $1.77 millionAugust 20, 2022: $1.7 million

Marin County Assessor’s Office is the source.