The Novato real estate market has stabilized after a bit of a rocky summer, and prices are up significantly from a year ago. Realtor Erin McGinnis explains in this 2-minute video, and you can read more below.

One of the best ways to judge how the market is performing right now is to look at pending sales. In other words, how many homes on the market are actually under contract with a buyer. In Novato right now, 28% of homes on the market are in escrow. That’s considered a neutral market, favoring neither buyers nor sellers.

The Novato real estate market has slowed down considerably from last December, when pending sales were at 76%. Buyer demand was much higher last year because interest rates were half of what they are today. The higher rates were intended to slow down sales to help bring down inflation, and it’s working.

But despite some fears out there, we are not in the midst of a housing market crash, as we outlined in our last video. We are seeing a correction. (Novato Real Estate Market is OK: 3 Ways We Know. )

Here in Novato, there’s positive news. Home sale prices are up year over year. Last November, in 2021, the median sale price was about $1.13 million. This November, it was $1.2 million, an increase of more than 6%. That’s strong price appreciation. And look at the trend line in the graph below. These bars represent the past four Novembers. Prices are trending UP an average of 10% a year. That’s above-average growth.

Last spring our home values skyrocketed, but those market conditions were an anomaly and the real estate market spent the summer trying to find its footing while buyers reacted to the shock of higher interest rates.  Prices dropped sharply in August, but rebounded in September and have leveled off for now.

2023 should be a good year for Marin real estate. Buyers and sellers will continue to adjust to new market realities, but we live in a county with very little housing growth, and that helps keep our home values strong.

If you’re thinking of buying or selling, please call us today, we would love to guide you through this market.

Please reach out via the form below or call us today: 415-725-1911