June 2024 Market Report Newsletter

June 2024 Market Report Newsletter ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏

In the Mill Valley area, there are currently 7 active listings in the $5 million-plus range. Among these listings, 2 have been on the market for over 100 days, 3 have been on the market for over 60 days, and 2 for over 30 days. Additionally, 1 listing has recently gone pending, while another has been withdrawn from the market.

It's important to note that the homes that have been on the market for over 100 days were initially priced too high, leading to a lack of favorable response from the market. As a result, the days on the market accrued, inevitably putting pressure on the prices.

On a positive note, well-priced and well-presented homes are selling quickly and at great values. For instance, my recent sale at 95 Eldridge Avenue, initially listed at $4.995 million, sold for $6.2 million in just 7 days, setting new records in Blithedale Canyon. Additionally, the sale of 11 Elma Street, which was sold off-market, listed at $5.495 million and sold for $6 million, achieved remarkable price per square foot.

Our market is dynamic, and success relies on the right advice and strategy. Marin County remains a prime investment area, especially with ongoing interest from San Francisco buyers seeking better public schools.

Warmly,
Sharon

Report Highlights

The 3-month-rolling median house sales price in May rose 4% year over year to hit its highest value since mid-2022. 

The number of active and coming soon listings on 6/1/24 was 36% higher year-over-year and was the highest count in over 2 years.

The number of home sales and luxury home sales in May 2024 hit their highest monthly counts since mid-2022.

Over 50% of home sales in May sold over the asking price. The average home sold a little above 2% over the asking price.

30-year-loan interest rates hovered around 7% in May and early June, which many buyers and sellers have clearly come to accept as the new normal. (And an estimated 30% to 40% of national homebuyers have been paying all cash.) Stock markets once again hit new all-time highs, with substantial effect on household wealth. It is not unusual for home listing and sales activity to slow in summer.

- Assessments & Reserves - 

Every home on the planet needs maintenance, repairs, upgrades, renovations and improvements over time. No property is immune from this.  Every homeowner knows that when a roof needs to be repaired, it's wisest not to delay..... keeping a reserve fund for these inevitable costs is essential, whether a single family home or an apartment building.

Owners of homes have two options as it relates to funding bigger cost items: either you build up a 'savings account' of sorts by adding a bit extra each month into the kitty to create a reserve fund, or you keep in the back of your mind the knowledge and certainty that at some point you will have to fund a bigger expenditure another way.

Sometimes these costs are financed, adding to a monthly ongoing repayments/financing cost. Sometimes they are paid in one lump sum. Delayed maintenance and upgrades is often more expensive. All homeowners should factor this inevitable cost into their home costs budget. Almost all capital improvements increase the value of a property, and almost all of them can be added to your cost basis so they could have tax benefits down the road upon resale.

- Benefits to Sellers: Offering Compensation to Buy-Side - 

Increased Buyer Interest: When sellers offer compensation to the buy side, the property may be more attractive to a broader range of buyers. This is particularly beneficial in competitive markets, where every advantage counts. By removing the financial burden of buyer side professional fees from the buyers, sellers can capture increased interest from potential buyers who may have been hesitant due to budget constraints. Keeping more buyers engaged could lead to more exposure, more interest, and more offers, which could result in a significantly higher sale price due to negotiating leverage if able to create multiple offer situations. 

Potential for Higher Selling Price: Because buyers don’t need to reserve funds for directly paying their agents professional fee (buyers may be indirectly paying the fee in the purchase price), they might be willing to offer a higher purchase price. Buyers can direct their available funds towards a more competitive offer. 

Faster Sale of Property: By removing the extra financial burden on buyers, sellers often enjoy quicker sales, reducing the time their property spends on the market. 

Simplified Negotiation Process: With professional service fees off the table, negotiations can focus squarely on the property’s price, streamlining the discussion. This simplification of the negotiation process can lead to more efficient and effective communication between sellers and buyers, creating smoother transactions. 

Reduced Financial Burden on Buyers: Sellers paying for buyer side professional fees may make properties accessible to a wider pool of buyers, some of whom might have limited available cash for upfront costs. By reducing the financial burden on buyers, sellers can open the door to a larger audience of potential buyers who may have otherwise been constrained by financial considerations.

Enhanced Seller Reputation: Sellers who cover the professional fees are often viewed as more motivated and cooperative, traits that can attract serious and qualified buyers. 

Additionally, it's important to consider the potential drawbacks of not offering compensation, which could result in unrepresented buyers who may not understand the process or have access to necessary forms. As a Listing Agent there is a fiduciary obligation to put ONLY the needs of Seller above all others, which does not include the unrepresented buyer. This situation could lead to the seller incurring costs of a qualified California real estate attorney to review contractual changes made by unknowing buyers, extensive counter offer process to correct errors and could increase the chances of post-closing litigation due to the buyer's lack of representation and knowledge.

Finally, it's worth considering how seller-paid commissions might benefit sellers financially in terms of reducing capital gains. I would recommend Sellers discussing this aspect with a CPA to explore potential tax advantages and implications.

- Mill Valley Sales Tax & Critical Infrastructure New - 

The City Council is moving forward with the actions required to place a 1% Sales Tax increase on the November 2024 ballot to provide funding for critical infrastructure.

At their May 20, 2024 meeting, Council unanimously adopted a Resolution calling and consolidating the November 5, 2024, Regular Municipal Election and requesting consolidation and services by the Marin County Elections Department.

At their upcoming meeting on June 17, the Council will consider Resolutions approving the Sales Tax Ordinance and a number of other Resolutions required to present the ballot measure to voters.

Mill Valley
95 Eldridge Avenue

5 BD 4BA 3,186 SF $6,200,000

This beautiful Blithedale Canyon home was listed at $4,995,000, received multiple offers and sold at $6,200,000.

My sellers are delighted to have sold for 24%,  $1,205,000 over asking!

For more information on the anatomy of this sale click here.

Mill Valley
11 Elma Street

4BD 4.5BA 3,277 SF $6,000,000

11 Elma Street in Mill Valley, sold swiftly and quietly in an off market sale.

We listed this spectacular downtown home at $5,495,000, and I secured a buyer at $6,000,000, 9% over asking, in just 2 days.

My sellers are delighted to have made 54 % appreciation in just 6 years!

Mill Valley
170 Bayview Drive

2 BD 2BA 1,440 SF $1,075,000

This modern home was designed in 1974 by renowned architect Steve Wisenbaker. 

Offering a unique design, views and privacy, my talented buyer snapped up the opportunity to take on this exciting project, which provides her with the template for a stunning remodel to transform the space.

I cannot wait to see her work in progress!

Larkspur
21 Bayview

4 BD 3 BA 2,623 SF $3,295,000

Nestled in the highly sought after Lower Palm Hill neighborhood in Larkspur, my buyers are delighted to have snapped up this wonderful family home to raise their young family in. 

Offering a perfect blend of traditional charm and contemporary finishes, a wonderful back garden and indoor outdoor flow and such a convenient walk/bike to town or school community.

Mill Valley
2 Chaucer Court

3 BD 2BA 1,356 SF $1,225,000

Newly renovated Shelter Ridge townhome featuring vaulted beam ceilings, 3 decks, and a 2-car carport with storage.

Shelter Ridge complex offers a fantastic community with pool, spa, tennis courts, playground and club house and in a convenient location near Hauke Park.

KINKY BOOTS is Almost Here!

This uplifting musical, with an award-winning score by Cyndi Lauper and a book by Harvey Fierstein, runs June 2, 8, 9, and 16 at the Cushing Memorial Amphitheater on Mt. Tam. Inspired by true events, it tells the high-energy, heartwarming story of Charlie Price, who partners with the fabulous Lola to save his family's struggling shoe factory by creating high-heeled boots for drag queens.

Sound Summit returns to the slopes of Mount Tamalpais this September 2000 feet above San Francisco Bay. 

Take a flight from the flatlands and join us for a hawk's-eye view of the highest festival in town – stellar lineup, stirring backdrop, buoyant spirits – all nestled under the late-summer sun. 

A day of music and imagination not to be missed! Tickets on sale Friday, June 7th at 10 AM PT.

Dr. Anthony Fauci
On Call

A Doctor's Journey in Public Service

$48 Ticket includes a pre-signed book
Tues., June 25th, 2024 • 7:00pm PT
Angelico Hall - Dominican University of California

Mill Valley Comedy in the Plaza! ﻿The Mill Valley Arts Commission's FREE Comedy in the Plaza happens Thursday, June 20th starting at 6 pm! This year's lineup includes Michael Yo, Giulio Gallarotti, Jeff Applebaum, Gary Michael Anderson, and MC for the evening, Dauood Naimyar. 

Learn about our amazing lineup of comedians.

— Available Homes —

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I am deeply grateful for the trust and support of my amazing clients, colleagues,  family and friends. I owe this achievement to you all and thank you for choosing me to represent you in your real estate journey.

Compass is a real estate broker licensed by the State of California operating under multiple entities. License Numbers 01991628, 1527235, 1527365, 1356742, 1443761, 1997075, 1935359, 1961027, 1842987, 1869607, 1866771, 1527205, 1079009, 1272467. All material is intended for informational purposes only and is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to the accuracy of any description or measurements (including square footage). This is not intended to solicit property already listed. No financial or legal advice provided. Equal Housing Opportunity. Photos may be virtually staged or digitally enhanced and may not reflect actual property conditions.