01 Jan Sausalito CA Real Estate 2013 Year-End Review
Sausalito had the best year of any town in Marin with strong showings in both unit sales and prices. The RESI “Discount from Peak” chart on the preceding page shows Sausalito down -11% from 2007, however if you remove Sausalito condos and focus just on single family homes (SFR), prices are only -3.6% below the peak.
The below shows the relative strength of Sausalito’s market segments- Sausalito is the only town in Marin where the top 50% of the market is truly stronger than the bottom 50%. Sausalito is drawing its strength from San Francisco more so than any town in Marin. Sausalito is a San Francisco alternative for buyers rather than a conscious move to Marin as families do for schools and lifestyle. Many Sausalito buyers are also looking for homes in North SF and making relative purchase decisions.
The above data displayed as a bar chart:
There are two stores of value in each home: 1)the ‘Lot/Location’ of the home (and the rights that transfer with title, such as public schools); and 2) Structure Value: layout, finish, curb appeal, etc., of the home. These two elements together create a home’s price.
The median lot value as a component of home prices is $724k, average is $920k or 11% higher. The 95th% lot value is $2.9m and the highest lot value for Sausalito is $4.2m.
Lot values as a component of home sales are a smidge below their all-time high, but the depreciated cost of a Sausalito house, removing lot value, is $344/sqft or -9% below peak. Buyers are paying up for proximity to the City and views, but paying less for ‘layout and finish’.
The bar charts in this newsletter are compiled and created by The DuPont Group (TDG). The most important elements to these charts are the ‘Biz Cycle’ bar which shows the 7 year trend; the 2013 bar, the smallest bar which shows the lowest prices of the business cycle and the highest bar usually in ‘07 or ‘08. The ‘Last 12’ bar is not pertinent in year-end reviews- it mirrors the preceding year bar, 2013 in this issue.