Dear Clients, Friends, and Family,
Happy 2022! I hope this email finds you and your families healthy and excited for what this new year brings.
Last year’s 2021 Marin housing market once again broke all records for volume, price, and inventory levels. The huge influx of residents moving to Marin, which started with the Covid-19 pandemic in early 2020, continued throughout 2021. Bidding wars, multiple offers, and a general lack of inventory drove prices to historical highs.
The CHC Team had the honor of representing the highest sale in Marin County for the second consecutive year, in addition to the highest recorded sales in Ross, San Anselmo, and Stinson Beach. Despite historically low inventory, in 2021 Marin County saw 3,607 sales totaling $6.72 Billion, surpassing 2020 volume by 17% and 2020 total sales by 30%. Heading into 2022, the market shows no signs of slowing with low inventory and high demand throughout Marin County. The number of properties for sale on the MLS is at the lowest level that we have seen in years with only 46 current active listings at $2M + county-wide.
The lack of inventory has been exacerbated by homeowners who are not trading up or down but instead choosing to purchase a second home or investment property. Buyers are competing once again in multiple offer situations, watching winning bids going well over the listing price, and non-contingent offers will continue to dominate the market. Even with the anticipated interest rate hike predicted for March, for most, the pent-up demand for homes will outweigh the increase in homeownership costs. Expect to see a frenzied spring season with buyers trying to find new homes and lock in rates before their purchasing power is affected.
The CHC Team is recharged and has hit the ground running seeking off-market inventory for our buyers and prepping seven new listings with more to come. For many of our clients, we are managing complete transformations that help maximize the value of their homes. Utilizing our team of professional resources, these design elements include new wood floors, countertops, lighting, carpet, paint, and of course, full staging. For sellers (even in an inventory-constrained market) the one factor above all that nets a premium, is a beautifully remodeled, move-in condition home with high-end staging.
Compass Concierge affords the CHC Team’s clients access to $150,000 in funds to pay for these improvements. Our clients reimburse Compass at the close of escrow with no additional fees and no interest.
My advice for those of you who are on the fence about selling your house …NOW is a great time to take advantage of sky-high demand, low supply, and fierce buyer competition. With buyer demand rising and historically low inventory for sale, if you are in a position to consider a move, do it sooner rather than later. Buyers are frequently offering extended rent backs to sellers to sweeten the deal.
A few thoughts as we enter this new year:
- High inflation poses a “severe threat” to the recovery in the US jobs market and entrenched inflation may jeopardize what has been a historically robust expansion said “Jay Powell” the Fed Chair in his recent testimony before Congress.
- Expect interest rates to rise this year. The average rate on 30-year fixed-rate mortgages in Freddie Mac’s survey rose to 3.45% in the week ending January 13th. The 22-basis point surge was the largest increase in a week since March 19, 2020, amid the initial pandemic lockdowns.
- While the supply-chain issues have an effect on every corner of the economy, the housing market has felt a particularly dramatic impact. Builders have not been able to keep up with the demand and the supply shortage of materials has impacted both the pace and cost of construction around the US.
- Home offices, flexible living spaces, and inspiring outdoor spaces became a priority for homeowners during COVID. That trend is here to stay according to lifestyle experts. The home has been recast as a mission-control center for wellness, work, school, and play.
- Nationwide, work from home opportunities has influenced 28% of moves during the pandemic according to a New Home Trends Institute survey.
I hope that you are taking advantage of the beautiful weather of late. I have been spending as much time as possible out on the hiking trails and have seen many friends and clients enjoying the beautiful nature and waterfalls. Stop by our office anytime for a map of Mt. Tam and the Marin Headlands.
Please do not hesitate to reach out if I can ever be helpful…my team and I are here for you.
All the Best,