Dear Clients, Friends, and Neighbors,
Happy Saint Patrick’s Day Everyone!
Like all of you, I am heartbroken over the Russian invasion of Ukraine. I am in awe of the bravery, heroism, and resolve shown by Ukrainian men and women. I hope and pray that this senseless destruction of life ends soon.
Mortgage rates topped 4% today for the first time since 2019. The Fed signaled a series of further increases this year aimed at tackling the fastest inflation in four decades even as risks to economic growth mount according to Bloomberg. Despite talk of rising rates, lack of inventory has been the main driver of this head-spinning market frenzy.
Last week Zillow reported that U.S. inventory sank to 729,000 home listings in February. That is down 25% from February 2021, and a decrease of 48% since February 2020. It also marks the fifth consecutive month of declining inventory. Devyn Bachman of Josh Burns Real Estate Consulting told Fortune, “As long as inventory levels remain near four-decade lows, it will be hard for the housing market to return to a normalized level of growth.”
The real estate headlines thus far this year continue to be a lack of inventory, homes going into contract immediately, and off-market sales. There are currently only 34 active listings in all of Marin County at $3M and above. Year to date there have been 54 sales over $3M (37 on the MLS and 17 off-market) with average days on market of 31 compared to 61 in 2021. Off-market sales this year are 70% above the same period in 2021.
Stories abound this year of jaw-dropping sales. This week, a sweet but dated Southern Marin gem listed in the mid-$2Ms received over 15 offers and will close for over $4M. The craziest bidding wars of the year thus far are happening in Mill Valley. Bottom line…It is a seller’s market. Buyers need to move quickly, be prepared to compete against multiple offers, write a contingency-free offer priced significantly above the pack. Be the outlier.
Our team is working diligently on rolling out eight fantastic new listings in the next several weeks. Please feel free to reach out to our team to learn more details. Many of our clients are utilizing Compass Concierge and loving what $150,000 in upfront costs can do to not only increase the value of their home but also attract more buyers who want “move-in” ready homes.
As always, we love to see you and hope that you will stop by our Ross office the next time you are in the neighborhood.
All the best,
