Property Values in Marin Stable Despite Foreclosures
The real estate market in most regions in the US is in doldrums. As people falter on mortgage payments, foreclosures have become common. Hence property values in most areas have plummeted. But now according to new statistics available not all regions have suffered. Property values in Marin for instance, have remained stable.
There are many homeowners in Marin who ask developers about the values of their properties and how much they have depreciated in the recent past, but there is no answer to this. The answer actually should be zero but then property values differ across segments. For instance, Novato’s market is weak. In the first quarter of 2008, most homes sold for price of $706,250. But in the second quarter the price was lower at $625,000. In 2009, the prices had plunged further to $535,000.
Studies also suggest that 55 per cent of home sales were of foreclosed homes. Many of them were short sales too. Hence, the median values are skewed. However, when short sales or foreclosures are not considered, then the median price of homes becomes higher. In the first quarter of 2008, the price was $1,129,500; while in the second half of the previous year, it was $1,071,250. In 2009 so far it is $1,200,000.
This could mean a lot. Regulators are constantly keeping lenders and banks under tight vigil. The problem is that these regulators are reading the same articles that an ordinary reader is reading that home values are plunging. It is sad that these regulators are not analyzing the data. They simply take it for granted that home values are down and apply this to every property.
That surely is depressing for a homeowner in Marin. He is huddled along with homeowners in other regions of Vallejo, Merced and Stockton. Developers are saying that the market is bad and although the figures in Marin do not support this, yet the general conception is that the market is indeed bad.
In other words, the home value depends not only on the location, but also the condition in which it is in comparison to the other homes in that market segment. The market in Marin has been more or less steady except for San Rafael and Novato where condominiums have depreciated in value. To protect a home from further depreciation, it is important to keep it in prim and proper shape. After all, the home is still the best investment.
