Belvedere Real Estate – 2022 Year End
An Inside Look at Marin County Real Estate
2022 was met with rising mortgage interest rates, stock market declines, inflation, and economic uncertainty that effected the Marin Real Estate Market, most notably in the second half of the year.
The second half of 2022 began to show a real shift in the overall market. Although fewer homes typically sell during the second half of the year compared to the first half, the second half of 2022 experienced a significant 20% reduction in sales volume compared to the first half of 2022. By comparison, the difference was just 8% between the first and second half of 2021.
The speed and change in market conditions are highly city-specific and supply-driven: communities experiencing a continual low number of homes for sale will benefit from buyers who are motivated and able to purchase.
While it is difficult to predict the near-term impacts of mortgage rate hikes and macro-economic headwinds, some buyers have paused their plans to purchase as they wait for additional clarity in the financial markets. On a positive note, household finances are solid and may potentially lead to more buyer activity once the economic trajectory is clear.
Nearly 50% fewer homes sold in Belvedere in 2022 compared to 2021 as 21 homes sold (vs. 43 in 2021) at an average selling price of $5.5 million. Just 8 homes sold during the 2nd half of 2022 compared to 24 homes selling during the same period in 2021. Many luxury home buyers appear to have paused their purchase decisions as they await further direction of financial markets.
During the 2nd half of 2022, Belvedere did experience the effects of changing economic conditions as just one home sold above the asking price and multiple offer sales were absent. The average price per square foot sold was $1,512 during the 2nd half of 2022.
The desirability and prestige of Belvedere homes will insulate the market from considerable decline, although current activity and pricing may continue to be impacted if economic conditions dramatically deteriorate, causing buyer reluctance to accelerate.
With the market in transition, it is now vitally important to prepare your home to look its absolute best. Homes that are prepped for sale and priced to reflect the current market are generating buyer interest.
Please call me at your earliest convenience to discuss maximizing the value of your home and pricing. I can also share with you how I will make your selling experience – from readying your home for sale to clear through the end of your move – hassle-free.