While the Marin median home price rose nearly 11% from December 2016 to this last December, specifically from $857,000 to $950,000, the number of properties sold dropped 9.4% during that same period. Extremely low inventory drives both of these statistics. The lack of available homes for sale means more buyers are chasing the same properties and bidding the sales prices up. Incredibly, there are 1/2 as many homes on the market today as there were 4 years ago.
It will be interesting to see how recent changes in the tax code, i.e., a $250,000 reduction in mortgage deductibility, the loss of deductibility of state and local income taxes on federal taxes coupled with the increase of the standard federal deduction will affect market behavior.
On a national level, while these recent changes in federal policy have scaled back traditional home-ownership incentives, a recent Wall Street Journal article indicates that millennials are opting to jump into the market.