10 Jul Keep your Powder Dry!
While the general trend in Marin Real Estate is still down, the last 6 months has seen a significant uptick in activity. The activity started in the lower end of the market back in November and picked up steam in the early part of the year. There were several stretches in Jan â€“ March where over 50% of the homes on the market below +- $1M were in contract. This liquidity enabled many folks with growing families and stable employment situations to trade up into bigger homes; and many people to get out of financially unsustainable living situations.
Â Activity in the lower market segments has cooled significantly starting in April, worse in May with a bounce in June.
Â The upper market has seen better sales compared to the last 18 months, but still very sluggish compared to the prior 7 years.
Â Many clients are asking if we have reached the bottom of the market. I donâ€™t believe we have. There are significant headwinds to growth moving forward. Â Next year will likely be difficult for real estate with possibly decreasing prices. The depth of the coming real estate pull back in the 2nd half of 2010 and 2011 will likely be directly correlated with the depth of the stock market pull-back. Keep your Real Estate purchasing power in Cash Equivalents NOT in stocks. Please discuss this with your financial advisors or accountants, and call me with any specific questions.