Larkspur 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 40% fewer Larkspur homes sold in 2022 compared to 2021 as 55 homes sold vs. 83 in 2021. The average selling price in the 2nd half of 2022 was $2.9 million, the same as in the 1st half of 2022. Twenty-seven homes sold during the 2nd half of 2022 compared to 44 homes selling during the same period in 2021. Even with lower sales volume, the Larkspur market has remained steady.
During the 2nd half of 2022, Larkspur did experience the effects of changing economic conditions as fewer homes sold above the asking price (60%), and the number of multiple offer sales (44%) decreased compared to the first half of 2022. For those homes selling over the asking price, the average percent over was 11.7% compared to 18.4% during the 1st half of 2022. The number of price reductions crept up to 22% of homes sold compared to just 7% during the 1st half of the year.
The long-term limited availability of Larkspur homes and its continued desirability will likely prevent any great shock to the market. Current activity and pricing may become further impacted if economic conditions were to dramatically deteriorate, causing buyer reluctance to accelerate.
With the market in transition, it is now vitally important to prepare your home to look its finest. Homes in sought after locations that are prepped for sale and priced to reflect the current market are experiencing noticeable 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.