Tuesday, July 31, 2007

Real Estate Going Up


While the rest of the country worries about prime and subprime loans, Marin County is shooting up in housing prices. Marin's median housing price is a whopping $1.2M!

Despite Cramer's best attempt at realizing the marketplace on a macro level its amazing that the market in certain areas is still robust. The average house has risen over 15% from last year in Marin. Thats great news for my parents who bought 25 years ago.

The reality is that there are no new developments in my county. No space for them really. Its been developed to the point that our county ordinances do not allow further development. Additionally we have designated large tracts of our county as Open Spaces.

The influx of wealthy and upper-middle class citizens, the 20 minute commute to San Francisco and Cafe Rulli will keep these home prices high.

2 comments:

Jon Smirl said...

Median prices are rising like this in my area too but it is not because the house prices are rising. The number of transactions is down 15%. The missing transactions are disproportionately in the low end of the price range. Stalling all the low end sales causes the median price to jump. It is an artifact of the way the numbers are computed.

Kristian said...

jon,

good point. there are many reasons to not fully trust statistics. you can always make them look great with enough lipstick.

volume of transactions is down across all markets, but there is always room for anomalies.