You may have heard that things are slowing down a bit. While the number of homes with accepted offers in Marin County still suggests we are in a very hot seller’s market, there are definitely going to be some opportunities for buyers this fall and winter. I’m talking about situations where buyers don’t have to compete against 6-10 other offers. Imagine walking into a home, liking it, making an offer at the asking price (or even less than asking), and getting an offer accepted! It’s happened before and it will happen again. Fall and winter are typically the most favorable seasons for buyers
There are definitely areas of Marin and certain homes that are sizzling right now. I heard a story recently about a house in Mill Valley selling $700,000 over the asking price. Mill Valley is an interesting, unique and extremely unaffordable market. Situated in the shadow of Mount Tamalpais, it’s close enough to both the freeway and the City which makes it very attractive for commuters. It’s also one of the coolest spots in Marin, both literally and figuratively. As time goes on and we see more people return to their offices, it’s logical that we’ll see more demand closer to the City. Also, the rich are getting richer (same as it ever was), and they are driving up prices on the higher end of the market in Mill Valley and throughout Marin.
That being said, in San Rafael and Novato the fever pitch has dialed back a bit. Not every house is going into contract after the first weekend with a bunch of desperate offers and selling $100,000+ over the asking price. Homes are going to come on the market that need some updating. The few buyers with vision, patience, and deep enough pockets to do their own updates are going to be able to find good values that the buying masses will overlook.
Everyone knows that selling season is spring and summer. That’s when the market is most active. Most people don’t realize there is also a buying season. The heart of the buying season is in November, December, and January. That is when the smallest group buyers are looking at the fewest number of available properties. Buyers in those months are truly motivated, and they are looking for the best values. It’s true that sometimes we see overbidding during these months. For example last year I received several offers on a home in San Rafael that went $100,000 over the asking price in November. Then, in December I represented buyers in Novato who purchased a home at its asking price. It was a great home, it just needed a little work.
You might be asking yourself why anyone would want to sell this year during buying season? There are more than a few good reasons. I like the fact that properties have been appreciating all year, and right now they are at their highest prices. Interest rates are still very low, and demand remains high as a result. I also like selling in the fall and winter because there is not as much competition among sellers.
You may be asking, “Why should I buy when prices are high?” This is Marin County. In the long run, prices will always go up. You can try to time the market and wait for it to drop. Good luck with that. You could end up waiting a long time, and in the meantime you’d be paying someone else’s mortgage. Lastly, when it comes time for you to buy a house you will be paying a higher interest rate.
The bottom line is, I think this buying season will be a very good time for people to buy and sell.