The spring real estate market is officially here, and there’s a lot of anticipation about what buyers and sellers will do over the next 2 months.

Here’s what you need to know. Watch a video update from Realtor Erin McGinnis. Or, you can continue reading below.

Pending Sales in Novato

Over the past 6 weeks, buyers have been more active in Novato compared to the latter part of 2022. Pretty consistently each week, about half of all houses on the market are under contract with a buyer. That’s considered a seller’s market.

Hottest Novato Price Points

When you look at price points, you start to see that some segments of the market are performing better than others. However, I will say the data show that most of the market is in positive territory. Please see the graphic below.

Novato single-family homes priced all the way up to $1.8 million are generally selling well.  The $1.8 million to $2.5 million range has been a little slow this month, and the $2.5 million and up bracket is performing as a neutral market, favoring neither buyers nor sellers.

Days on Market

It is taking longer for homes to sell, compared to last year. In February the average days on market was 52 compared to just 20 days a year ago.

So what about Novato prices?

In February, the median sale price for a single-family home was $1,200,000. That’s down 8% from last February.

Comparing sale prices to 2021 and 2022 can be a bit of a let down for home sellers, but remember those were pandemic boom years, and the peak of a 10-year run-up in prices. If you’re looking for a bright spot, I have some data for you. February home sale prices were up 16% from February 2020. That represents more than a 5% annual increase in prices, which is strong.

What to Expect This Spring

This spring, we expect inventory to remain low. Homebuyers can expect a less competitive market, but they must continue to be decisive, because the most desirable homes – that are well prepped and priced well for the market — are still selling quickly.

If you need to buy or sell this year, please contact us today!