Sunday, May 07, 2006

Price Reduced in Marin

Ever since ZipRealty began keeping track of properties listed as "Price reduced" I've been recording this data for Marin almost daily. I search for all Marin SFRs falling within the asking price range of $10,000 to $10,000,000.

In the graph below you can see the data that I've collected so far. From February to April, 2006 the percentage of SFRs sporting "Price Reduced" hovered around 17% and then took off. We just broke through the 26% mark -- that is, 26% of all houses currently listed in Marin are listed as being "Price Reduced".

How high will it go? If 'everyone wants to live here', and if 'Marin residents are financially savvy', then why are sellers in Marin being forced to reduce their asking prices?

It seems to me that anyone thinking of buying a house in Marin now would be far better off just waiting. The lower the selling price, the lower the property tax you have to pay year after year after year after year...
But to every thing there is a time and a season, and that’s as true for home buying as it is for everything else,” Fletcher says. “The people who win big in the real estate game are the ones with the courage to sit out the manias as the markets reach their peaks and buy during the busts.

-- June Fletcher, "House Poor: Pumped-Up Prices, Rising Rates, and Mortgages on Steroids"
It seems to me that price is a matter of opinion; debt is real. In this buyer's market, show no pity as sellers have shown none in the recent past.

5 Comments:

Blogger David said...

I thought Marin county was God's county.

May 7, 2006, 1:06:00 PM  
Blogger anon said...

Another brilliant post. The data continues to speak for itself.

May 8, 2006, 10:34:00 AM  
Blogger peterbob said...

It seems to me that anyone thinking of buying a house in Marin now would be far better off just waiting. The lower the selling price, the lower the property tax you have to pay year after year after year after year...

I totally agree!

May 8, 2006, 12:19:00 PM  
Blogger hemorrhoidforhousing said...

The inventory of existing homes in Livermore has gone over 400 and Pleasanton is now over 300. About 1/4 of them are also listed with price reductions.

The market has softened all over the Bay Area. Marin just has farther to fall than most other areas.

I love the Marin POS site you have. Why in the name of all thing reasonable would some who can afford a $750,000 house live in a dump? Why do they lower themselves that far?

May 8, 2006, 1:07:00 PM  
Blogger rejunkie said...

Because they would prefer not to live in Livermore.

Oops, did I say that out loud?

May 8, 2006, 8:10:00 PM  

Post a Comment

Links to this post:

Create a Link

<< Home

Terms of Use: The purpose of the Marin Real Estate Bubble weblog (located at URL http://marinrealestatebubble.blogspot.com/ and henceforth referred to as “MREB” or “this site”) is to present and discuss information relating to real estate and the real estate industry in general (locally, state-wide, nationally, and internationally) as it pertains to the thesis that recent real estate related activity is properly characterized as a “speculative mania” or a “bubble”. MREB is a non-profit, community site that depends on community participation and feedback. While MREB administrators do strive to confirm all information presented here and qualify all doubtful items, the information presented at MREB is neither definitive nor should it be construed as professional advice. All information published on MREB is provided “as is” without warranty of any kind and the administrators of this site shall not be liable for any direct or indirect damages arising out of use of this site. This site is moderated by MREB administrators and the MREB administrators reserve the right to edit, remove, or refuse postings that are off-topic, defamatory, libelous, offensive, or otherwise deemed inappropriate by MREB administrators. You should consult a finance professional before making any decisions based on information found on this site.

The contributors to this site may, from time to time, hold short (or long) positions in mentioned and related companies.