The Novato real estate market has been a roller coaster since the start of the pandemic in spring 2020, but the past year has seen especially dramatic changes.
Realtor Erin McGinnis explains in this video, and you can read more below.
Is the Novato Real Estate Market Up or Down?
People ask me all the time, how’s the Novato market? Is it up? Is it down? And the answer to all that is.. yes.
The market has been a roller coaster since the start of the pandemic in spring 2020, but the past year has seen especially dramatic changes.
A Year of Record Prices
Prices in 2022 peaked to record levels in June. But during the spring, mortgage interest rates were also climbing, and by summer the shock of higher rates sent a chill through the market, and prices fell (on average). We ended the year back where we started.
Here’s a graphic showing what happened. The median price in January was $1.2 million, it soared to $1.425 million in June, then marched back down to around $1.2 million by fall. Prices stabilized through December.
So back to the question, how’s the market?
Is it up or down? Well, the great majority of indicators – sale prices, days on market, overbidding – these indicators point to a market that has significantly corrected since spring 2022, when it appears a 10-year market upcycle peaked.
But Novato homes continue to sell. If you look at last spring’s supercharged market as the anomaly it was, and instead take a wider view, then I believe you’ll be reassured by how home prices have appreciated, and how good of an investment Novato real estate is.
The chart below shows year over year trends for the 4th quarter, starting in 2019. Even though prices were flat from the end of 2021 to the end of 2022, the market benefitted from 2 previous years of 15% gains. That’s something to feel good about as a homeowner.
So what about 2023 for Novato real estate?
We’re feeling very optimistic. Buyer activity has started to come back to life in the just the past couple of weeks. We’re seeing a lot more activity on our listings. Buyers may be realizing that prices have come down since last spring, which helps offset the impact of higher interest rates.
If you’re thinking about moving this year, there’s more to know, so please call us today, we would love to guide you through this market.
Do you live in Hamilton, Pointe Marin, Loma Verde or Presidents? See our new January market updates for these neighborhoods on our YouTube Channel (click here).
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