The two most important factors affecting real estate prices are the economy and demographics. The economy goes up and down, but demographics, particularly the baby-boomer generation, just keeps rolling along. It's a force of nature.
To gauge the impact of the baby-boomers on Marin real estate, I rolled their yearly births forward 43 years, about when they are beginning to trade-up into bigger houses and better neighborhoods, something like Marin. The following chart shows their effect.
This chart pretty accurately shows the real estate market in Marin. Prices soared from 1987-1989. Stagnated from 1990-1993, then took off again. Although boomer demand will start slowing in 2005, notice that demand will still be higher out to 2022 than anytime before 1989, when prices really took off.
Your local real estate agent, the one who deals with the marketplace on a daily basis, is your best guide to what's happening in the micro-market.
For detailed information on a specific community or neighborhood, give me a call or send me an e-mail by clicking on my name below.
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