San Rafael CA Real Estate Market Report (July 2009 Home Sales Update)

July 18, 2009

As Summer sets in, San Rafael CA’s real estate market has slowed a bit. It is increasingly fueled by foreclosures and short sales. The low end (under $600K) remains hot (67% of homes in escrow, compared with 64% in June 2009) and the $600K to $800K price band has seen steady activity with 35% of homes in escrow. Increased affordability, low interest rates (rates are down from the time of last month’s report), an increased presence of FHA loans, and a shifting mindset by both buyers and sellers, are all resulting in a strengthening market. Additionally, the $8K tax credit for first time home buyers is likely helping pull some buyers into the fray, despite the income limitations placed on this credit. It will be interesting to see if the government expands the credit to include ALL buyers and increases the credit amount to $15,000 — that would make a big difference for a lot of people. Overall, the number of homes on the market fell to 159 homes (from 168 last month).

As with asking prices in Novato, San Rafael has seen an uptick in average asking prices over the past few weeks. It remains to be seen if this is a leading indicator regarding sales prices.

Real Estate Market Chart by Altos Research

Thirty-eight homes sold in June 2009 (down from 40 in May 2009). The average days on market was 82 days, the average sales price was $832,221, and the average home size was 2,241 square feet — roughly $384 per sq. ft. The hottest neighborhoods: Lucas Valley, The Dominican, and Gerstle Park remain very attractive to many buyers, as do Terra Linda and Glenwood. Finally, if you know anyone interested in a very well maintained Eichler with a wonderful outdoor living area, please let me know as I have clients considering a move if the right buyer comes along.

Price Range Total Homes Percent Pending
Up to $600K 36 67%
$600K – $800K 80 35%
$800K – $1 mil. 48 15%
$1 mil. – 1.5 mil. 32 16%
$1.5 mil. – $2 mil. 19 5%
$2 mil. & Up 9 11%

If you have any questions regarding the current real estate market in San Rafael (Marin County, CA), California, please contact Kyle Frazier, Marin Realtor & CRS, Morgan Lane Marin Real Estate: (415) 350-9440.