Foreclosed New Homes Are Being Sold Aggressively in Marin

Foreclosed new homes and other non-foreclosure homes in Marin County, known for its natural beauty and high-tech industry, are being priced aggressively to attract more buyers and multiple offers.

A ranch-style house with views of the San Francisco Bay previously listed at $949,000 is now being sold at $859,000, a drop of nearly $100,000.

Sellers have become more realistic about the housing market and are starting to understand the perceptions of buyers. Buyers are now getting attracted by foreclosed new homes that are not only well-maintained but also priced well.

In May, single-family home prices in Marin dropped by over 35 percent compared to May 2008. The median price dropped from $1.1 million in May last year to $712,000 last month. Sales were about even, with 178 houses sold in May 2008 and 171 houses sold last month.

In April this year, the median price for a single-family house was $743,000, with total sales of 130 units.
Of the total sales last month, 48 units were condos, sold at a median of $310,000, representing a 34 percent decrease from $470,000 price in May 2008.

The median price for all types of sales, including sales of foreclosed new homes, was $620,000, a 31 percent decrease from the $889,000 median in May 2008.

In Marin, total home sales in May included 220 single-family houses and condo units, a slight drop from the 226 units in May 2008. Last April, Marin had a total sale of 174 units.

Real estate analysts in the area observed that sellers have discovered the benefits of reducing their prices, such as receiving more purchase offers.

One seller has even dropped the price of his five-bedroom house by a staggering $300,000 to $1.5 million.
Throughout the San Francisco Bay Area, a total of 7,447 new homes, pre-owned homes and foreclosed new homes got sold, an increase of nearly 20 percent from sales in May 2008 and also an increase from April’s sales of 7,139 units.

The median price for houses sold in May in the Bay Area was $341,500, a 12.3 percent rise from the median home price of $304,000 in April, but a 34 percent drop from the median in May 2008.

Real estate market analysts attributed the slight increase in Bay Area home prices last month to an increase in home purchases financed with jumbo mortgages.

In Marin, foreclosed new homes and other distressed houses accounted for almost 18 percent of all house sales in May, a jump from the 5.4 percent share in May last year.

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