What happens when the best houses hit the market and sell quickly in nice neighborhoods like Terra Linda? We see price appreciation. You know the market is in good shape when this dynamic is taking place, as it is currently. When the market is not doing well, these nicer homes tend to take longer to sell, and price reductions become necessary to move them as lesser homes at lower price levels drag buyer expectations down.
There are recent examples of Kenney built homes in Terra Linda which are driving values up. Kenney homes are one of four predominant types in Terra Linda, the others being Eichlers, Alliances and Tarrants. Kenneys and Tarrants have raised perimeter foundations with conventional forced air heating and plumbing. Eichlers and Alliances were built on concrete slabs with the radiant heating and plumbing going through the slabs. More and more Eichlers and Alliances have been abandoning their heating systems, switching to mini-splits, which are costly replacements but also nice upgrades that include air conditioning.
Getting back to the Kenney sales, recently 527 Tamarack Dr closed escrow (off the MLS) for $1,525,000. It was a 1526 sq ft home with 3 beds and 2 baths, a very common Kenney model. The last previous sale of the same model at 532 Tamarack sold for $1,351,000 in June. 532 was a dated home in structurally good shape, and 527 was beautifully updated so the higher price was justified. 532 actually started at $1,295,000 so it was overbid by $56,000 with only 2 offers. All it takes is 1 good offer to sell a house, and 2 offers to get overbidding.
This week 419 Montecillo Rd, another beautifully updated Kenney, the same model as those mentioned on Tamarack, went into contract asking $1,495,000. This is quite amazing. Last year there were two sales of the same model Kenney home, both on Tamarack Dr. 555 Tamarack sold for $1,258,000 and 535 Tamarack sold for $1,300,000. Prices have bumped up $200,000 - $250,000 largely based on the fact because the higher sales are significantly more updated.
What does that do to these same model Kenney homes that are not as updated? Certainly sellers price expectations will be raised. The only question is what happens next with buyers when a Kenney home that isn’t as updated is put on the market theoretically at $1,400,000? Does it go quickly and maybe attract overbids? Or does it sit and need price reductions to move?
Whatever the case, the market is dynamic and moving in a direction that is currently favorable for sellers. That is typically how it goes throughout San Rafael specifically, and Marin County in general.