Our fall selling season kicks off right after Labor Day. If you are a buyer hoping to catch a break this fall, you might be disappointed. Interest rates continue to be extremely low, turning up the heat on demand as buyers scramble to take advantage of their buying power. Rates are currently hovering around 2.70% on 30 year fixed mortgages. Mortgage money is dirt cheap!
On the supply side, as of mid-August roughly half the single family homes on the market in Marin County had accepted offers, solidifying the strong seller’s market conditions. Good luck finding a home on the ‘lower’ end of the market, under $1 million. The disparity between buyers and sellers is greatest under $1 million, and with more listings in contract and less listings to choose from, it’s not an easy time to be a buyer.
There is hope in the higher end of the market for buyers looking over $2 million in Marin. That segment of the market is significantly slower and tending towards a neutral rating. Believe it or not, there is even one segment of the Marin market that is experiencing buyer’s market conditions, with few properties in escrow and lots available. If you are looking for a house over $4 million, now is a good time because there isn’t much competition between buyers. Then again, we don’t usually see a lot of buyer competition in that rarified stratosphere. Expect that to change in the future as lower, endangered price levels become extinct and the market ultimately continues to appreciate.
For buyers on a budget, times are going to be tough the next few months. Buyers may catch a break when the holidays roll around because we typically have a lull in the market from Thanksgiving through the New Year. The pick’ins will likely be slim again, but there should be some opportunities for motivated buyers who continue to scour the market. Last year, I helped a really nice couple purchase a house in Novato in December. They were the only buyers who made an offer as well! Had the property come on in the spring I’m sure the story would have been different.
If you are reading this and considering buying a house this fall, buckle up. It’s not likely to be an easy ride to your new home.