Happy New Year!
While many of us are relieved to see 2016 receding into the sunset, we are greeting the 2017 Marin Housing market with some trepidation. Marin values are somewhat insulated due to limited housing stock and continued job creation area-wide, yet prices are likely to flatten or decrease in some areas due to rising interest rates and years of upward trending prices.
Even though many of Marin’s buyers come to the table with an excess of cash, mortgage rate s will have a slightly depressing effect on pricing in Marin (but not on sales). As of this writing, rates are a half a percentage point higher than a year ago. They are expected to continue to rise throughout this year.
Anastasia’s Predictions 2017: Toe Dipping
“Where will I go?”, is an oft heard refrain in this county. If homes begin to sit longer on market (the higher end is doing just that), then sellers will begin to entertain buyers who have to sell their (buyers) homes before proceeding. Conversely, sellers can offer a home for sale with the contingency that they have to locate a replacement property in order to complete the sale of their home. In addition, would-be sellers are talking about preparing their homes for sale as a contingency IN CASE they find something they want to buy. Toe Dipping…i.e. testing the market.
Did you know:
Marin Inventory is constrained in part because Marin homeowners earning a profit (after sale) significantly over the $500,000 exclusion limit cannot always afford to sell due to the tax consequences. Thus, they rent out their homes now (choosing instead to pass on the asset in their estate which has better tax consequences for their heirs.)
For more information on this ever- changing market, don’t hesitate to reach out to me on my cell: (415) 302-4123.