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February 2022 Market Update (VIDEO)

February 2022 Market Update (VIDEO)

February 2022 Market Update

How’s the Novato real estate market? It’s full of anticipation right now, mostly around inventory and interest rates. Realtor Erin McGinnis with Team McGinnis Realtors explains in this video.

If you’re out house hunting this week in Novato, you may have noticed there are 46 single-family homes on the market. But two-thirds of them are already gone, they’re under contract. So there are exactly 15 active listings to choose from. That’s some of the lowest inventory in a decade. Only three of the homes available for sale are priced below a million dollars. Seven homes are priced between $1,250,000 and $1,500,000, and the rest are between $1.5 million and $1.9 million.

Sales are down so far this year. Last month, 22 homes sold in Novato compared to 30 homes the year before. That’s a 36% decrease in sales.

Buyers far outnumber the inventory of homes available, and we’re continuing to see multiple offers on the majority of properties. In January, more than half of the homes sold reported multiple offers, and the average home sold for 4% more than the asking price. That’s in line with what we saw last year.

The inventory crunch is creating some anxiety because buyers are hoping to grab today’s interest rates while they last. Rates are still historically low, but the market has gotten used to rates at or below 3%, so this upward trend toward 4% is going to take some getting used to.

Buyers at higher price points are less sensitive to interest rate increases than first time buyers.

It’s reasonable to expect a very hot spring market. More inventory is on the way. Sellers have learned that if they do their pre-sale inspections and put in the effort to prepare their homes for market, that buyers will reward them with very attractive offers.

If you’re considering buying or selling this year, we’re to answer your questions and guide you through the process. Contact us today. 415.725.1911 or teammcginnis(at)compass(dotted)com

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