Marin County, California continues to prove itself as a hot market in the world of real estate. This growing area includes not only the bustling city of San Rafael but also numerous smaller luxury real estate markets like Tiburon. The sizable spike in median home prices nationally since early 2020 was not lost on Tiburon. This community underwent historical increases in home values as the demand for luxury property in this desirable community far outweighed the ready supply. If you are considering purchasing property in Tiburon, knowing the current real estate market trends there, as well as the forecast going into 2024, will greatly benefit you. Here’s what local experts are saying about the Tiburon real estate market.
The national real estate market forecast for the remainder of 2023
Median home prices hit their
record high in June 2022, prompting the Federal Reserve to continue to increase the interest rates. In a joint effort to drive down home prices and to combat inflation, the Feds would raise interest rates nearly every time they met over the last 18 months. This had an effect that resulted in median home prices dropping year-over-year for the first time in April 2023.
But the lasting impact was brief. While overall home closings were down nationally, median home prices began to creep back up. The values today are such that many experts are forecasting a new high in median home prices before the end of 2023. With the demand still high and the supply low, there isn’t much speculation that values will noticeably drop in the foreseeable future.
As a buyer or seller in Tiburon, what does this mean for you?
How the national numbers are impacting the market trends and forecast for Tiburon
The demand for homes in Tiburon is still relatively high, even with recent increases in interest rates. The Tiburon real estate market has median home prices that are already high, even when compared to the rest of California. The
median home price in this community of 10,000 is a little over $4M.
Interest rates might well continue to rise throughout the rest of 2023, giving some reason to speculate that this could make the median home prices drop in Tiburon. However, with the given high level of demand, it’s forecasted that these drops in price, if any, will be short-lived.
In fact,
Morningstar is predicting that the Feds will be satisfied with the rate of inflation by early 2024. If this holds true, the analysts forecast that the Federal Reserve will begin to cut the base rate as early as February 2024, with significant cuts happening over the subsequent months.
A drop in interest rates will likely further increase the demand for homes, particularly in luxury markets like Tiburon. A bigger spike in demand will, of course, result in median home prices climbing even higher in Tiburon in 2024.
What the market forecast in Tiburon means if you are a buyer
If you are considering buying a home in Tiburon, the current interest rates and high median home prices might give you some pause. One might reason that waiting for rates to drop will save a lot of money in interest rate payments over the life of the mortgage. And while that is true, there are other important factors to consider when you are looking to buy in the Tiburon real estate market.
While it’s true that you’d save on interest payments by waiting for the rates to drop, you will very likely be paying more for your home if you put off your purchase. As experts are predicting that median home prices will continue to rise, you will be better served in the long run by paying more in interest on a smaller loan.
And when rates actually drop, you can always refinance. Buying the home before the value increases and then securing a lower interest rate in the future is a win/win for any buyer.
For these reasons, it’s important that you team up with an experienced luxury real estate agent in Tiburon if you are looking to purchase a home. With the market remaining competitive, you will want an agent who has the negotiating skills to secure you the best possible deal at closing.
How the numbers in Tiburon will impact you as a seller
As a seller, you might believe that such a hot seller’s market makes using a real estate agent unnecessary. But no matter what the market looks like, a seller’s agent will always be important. Here’s why.
In luxury real estate especially, you will want the most qualified prospective buyers to view your listing. This saves you a lot of time and effort. A selling agent will have the skills to market your listing to the right buyers, and will often lead to buyers trying to outbid one another in this type of seller’s market.
Studies have shown that a seller will make substantially more money at closing if they are represented by a real estate agent than they would if they are going the for sale by owner route. And while a FSBO transaction will mean that commissions to agents and brokers aren’t paid out, they almost always result in the home being sold for double digits less than they would if they were marketed by an agent.
Want to make a move to Tiburon?
The decision to buy or sell real estate in any market is one that requires a careful strategy and proper planning. If you are considering property in Tiburon, it will pay to have a real estate agent guide you through the process. An experienced agent like
Nathalie Kemp has the background in luxury real estate to secure the best possible deal as a buyer and the marketing savvy to attract qualified buyers to your listing as a seller. Consider a consultation with Nathalie today.
