24 YEARS OF NOVATO HOUSE VALUES
A look at the numbers:
Since 2000 median home prices in Novato have increased 189%
Since 2005, the former peak in prices, home prices in Novato have increased 62%
Since 2011, the bottom of the market, home prices in Novato have increased 140%
In 2024, Novato median prices increased 7.9%, to $1,297,500
Median prices increased to $1,297,500 in 2024
That's a significant increase from 2023, but not quite reaching the median price for 2022.
2024 year in review
The highest prices of 2024 were achieved in January and February, bucking the trend of a usual high point in late spring or early summer. Inventory was at historic lows and high buyer demand drove prices up in the early part of the year. The Fall surge in interest rates saw many Buyers leave the market and prices retreated back to Fall 2023 prices. Both Sellers and Buyers perceived it as a tough year and the net result was much fewer sales than normal.
All in all 382 houses sold in Novato in 2024, which is well below the historical norm of around 500. A big change from 2022 when 475 houses sold, and a huge change from 2021 when 633 houses sold. Anything in the 450-550 range is normal.
With the high interest rates this past fall, affordability reached an unsustainable level for many buyers. Both from a data perspective and a feet on the street perspective, it appears buyer demand will remain soft. The most likely scenario, baring a major macroeconomic shift is fairly steady prices and a slight increase in inventory and transaction volume - not very exciting, but we like to keep it real, even when it doesn't make for dramatic headlines.
Below is a deeper dive into some of the Novato data you'll only find only here at Burdell Real Estate.
Here's a look at the dollar per square foot changes:
25 Years of Dollar Per Square Foot Prices
Dollar per square foot ($/sq ft) is an important metric in assessing values. Here we see that $/sq ft prices have tracked sales prices, with an increase of 2.7% from 2023 to 2024.
2024 Dollar Per Square Foot Prices
In our scatter chart, each point represents a sale in 2024. As is typical, $/sq ft price overall increases as home sizes decreases. The median overall for Novato in 2024 was $642 (vs. $625/sq ft in 2023). All segments had increases with the exception of 4000-5000 sq ft houses, which had a drop of over $100 per sq ft (although with a relatively small number of sales in that segment, larger fluctuations are normal). Prices commonly fluctuated between $400/sq ft and $1,000/sq ft.
Prices vary based not only on size, but neighborhood, upgrades, condition, yard, views, style, neighbors, traffic flow, staging, and agent marketing skills.
It's always hard to predict any market, whether it's the stock market or the real estate market, but it remains true that over the long term the trajectory is always up. When you're planning to call somewhere home for the long term and you have the ability to enter the market, it's usually a good move. We're here to help you find the perfect place when the time is right, or help you through the selling process when life calls for a change. Feel free to reach out to us at any time.
For an up to date look at the current market go to our Novato Monthly Update page.
For a free professional estimate of your home's value go to our Get My House Value page.
As an aside, Agents usually need 3-6 weeks to bring a house to market, so NOW is not too soon to reach out if you are thinking of selling this Summer, or even further down the road. In fact, savvy Sellers contact us early, providing a running start, which in turn, allows them additional time to begin the process of purging and packing (no easy feat). In short, the sooner, the better for everyone involved.
If you ARE interested in selling your home this calendar year, we're here to help you manage the process and achieve your goal. Please reach out if you'd like an accurate assessment of your home's value.