As a top-producing local real estate team, we’re committed to giving you excellent, personalized service. This guide offers a timely analysis of the housing market in San Anselmo, California, that can help you develop winning buying and selling strategies.
* Although too early to judge, early economic data for the first quarter of 2025 is pointing towards negative growth, according to a Federal Reserve Bank of Atlanta measure. While bad economic news is not good.....it can be helpful to bringing down rates.....if inflation does not rise.....(CNBC) as of late February 2025
While the fundamentals of developing a winning buying and selling strategy remain the same, you should also consider current local housing market indicators. To give you an overview of the San Anselmo market, this guide will cover the following topics:
- Housing Market Behavior in an Elevated Rate Environment and Low Inventory
- Supply and Demand Trends for Single-Family Homes in San Anselmo
- Key Housing Market Indicators for San Anselmo
- Listing a Home at the Right Price
Housing Market Behavior
The single-family home market experienced ----------
Year over year, the median single-family home price in San Anselmo was ------------
Supply and demand and mortgage rates have significantly driven prices over the past year. Locally, San Anselmo experienced a --% increase in homes sold year over year, which highlights the high demand in the area.
The average 30-year fixed mortgage rate in the United States has more than doubled since December 2021, increasing by about -- percentage points, negatively affecting affordability. For example, increasing a homeowner’s interest rate by just 1% would cost them about $500 per month on a $1,000,000, 30-year mortgage. Because rates were expected to rise in 2022, short-term demand increased, lifting prices higher in the first half of 2022 before contracting in the second half of the year. Even with sustained higher mortgage rates, low inventory boosted prices in ----.
Supply and Demand Trends for Single-Family Homes in San Anselmo
Single-family home inventory trended higher ------, ---which is far from the seasonal norm---. Typically, inventory peaks in June and picks back up in September and October and declines mid November through February picking back up in March and April. As sales and new listings declined, single-family home inventory fell in November and December. ------- finishing content--------
Months of Supply Inventory (MSI) — the measure of how many months it would take for all current homes for sale on the market to sell at the current rate of sales — is typically low in the area. In California, the long-term average MSI is around three months, which implies a balanced market that doesn’t favor buyers or sellers. San Anselmo is almost always in a sellers’ market for single-family homes due to the low supply relative to demand. MSI currently indicates a strong sellers’ market.
Key Housing Market Indicators for San Anselmo
In this section, we analyze the single-family home market across several key indicators to provide the necessary information for you to refine your winning buying and/or selling strategy. As market conditions change, we can look at the data in real time to make the best decisions.
In February 2025, single-family home prices ---------- in terms of median price and price per square foot. Single-family home sales ------ despite low inventory, highlighting the high demand in San Anselmo.
The current housing market favors sellers in San Anselmo.
MSI was low in ---- for single-family homes, which implies that the market favors sellers. However, generally, ----fewer/more/balanced---- new listings --------- months. We expect fewer new listings and sales than normal, and for inventory to possibly hit a record low this winter.
The Days on Market (DOM) implies that sellers should expect offers to be accepted in about 39 days for single-family homes. If it takes longer to receive offers, sellers should consider reducing their prices. Buyers should proceed with caution and consult with an experienced agent before making an offer on a home that has been on the market for longer than the average DOM because the price may be too high, or something may be wrong with the property.
Sale-to-list-price ratio — a measure of the difference between the original list price of the home and the final sale price — reflects the negotiation power of homebuyers and home sellers under current market conditions. The average single-family home sold for --% of its original list price, which means buyers and sellers should expect to negotiate offers below list price. However, we will see in the next section that properly pricing a home can make a huge difference in the percentage of list price the seller receives.
The Importance of Listing a Home at the Right Price
We can split homes sold into two categories: homes sold without price reductions and homes sold with one or more price reductions. Price reductions may indicate problems that need to be fixed, poor marketing, and/or bad showings. More often, however, price reductions occur because the home was overpriced and misaligned with market data from the time it was first listed.
Overpricing a home can create a negative feedback loop. Initial offers fail to materialize because the home is overpriced, the Days on Market surpasses the average, and new potential buyers assume there’s something wrong with the property. More price reductions and low offers might follow as the home sits on the market, causing the final selling price to come in below what the property could have garnered had it been priced correctly in the first place.
For an example of such a scenario, we can look at the February 202- single-family home data.
A total of ---- homes sold without price changes, recording an average of ---% of their original list prices and spending 20 days on the market. In contrast, the four homes that sold with one or more price reductions recorded only ---% of their original list prices (on average) and spent over twice as long (-- days) on the market. These numbers underscore the importance of a well-informed pricing strategy.
Conclusion
In the coming months, we anticipate fewer new listings and sales due to normal seasonality and the current economic environment. The cost to finance a home is near a 23-year high, which buyers must navigate. Higher mortgage rates also impact sellers, since they are often buying in conjunction with selling their homes. All that said, demand for homes in the area will likely outpace the homes on the market, creating price support. Overall, the housing market has shown its resilience through both the pandemic and this new chapter of rising mortgage rates and high inflation, remaining one of the most valuable asset classes. The data show that housing has remained consistently strong through this period.
As always, we remain committed to helping our clients achieve their current and future real estate goals. Whether you’re planning to buy or sell, we can guide you through the options that best fit your needs. Deirdre and I as experienced professionals are happy to discuss the information we’ve shared in this white paper. We welcome you to contact us with any questions about the current market or to request an evaluation of your home.
San Anselmo’s real estate market update for February of 2025. The single page graph is professionally done with the data pulled from "Broker Metrics". A great resource for a birds eye view of the local San Anselmo real estate market.
