Putting a real estate deal together in Marin County, California

In Marin County we are seeing buyers being much more tentative, selective, and thorough in what they end up buying. The drivers behind this are higher rates on loans, higher premiums on homeowners insurance, and larger loan balances. Buyers in Deirdre and my experience often times simply cannot afford the higher payment and take on any repairs. With this in mind we are seeing homes that are done, = no big repairs costs or systems needing replacement, sell much more quickly, however, homes even meeting these requirements are not uncommonly selling under the list price. Novato saw 16 homes sell under asking, San Anselmo 11, and San Rafael 19. The work involved in putting a deal together in Marin has more than doubled, is our experience, and we are hearing our colleagues voicing similar experiences. Buyers are expecting more and many sellers are frustrated with the current buyers state of mind. There is also a lot more negotiating going on before the principals are even in contract. Deals are happening and the market is moving along at a fair clip, "all things considered," but be prepared for more back and forth. 

* Many first time homebuyers have been priced out by higher interest rates combined with higher home prices and higher insurance and real estate costs. On average, 2.1 million people a year became first-time buyers over the last 20 years..... in 2024 it was under 1.2 million, over 47% below average! (WSJ)

The median sales price is down year over year in Novato and San Rafael, but up in San Anselmo. See below graph. 

Luxury home sales in Marin doubled from the first quarter. See graph below;

You can see from the graph below, that even with the downturns the Bay Area has experienced, buying real estate here is still a sound investment.