San Rafael–Marin apartment landlords have survived the Covid 19 crisis virtually unscathed. After the shock of outsized job layoffs local landlords stepped up and proactively worked with their tenants to make arrangements for in arears rent payments and rent deferrals.
Now the Marin apartment market is resuming their spring selling pace, that was delayed by the shelter in place order, with more new listings and many properties going into contract in the last two weeks.
Property prices leveled off in the past 12 months and this year is no different. Pricing is crucial in a buyers’ market and that is what we are in right now. Sellers should expect to negotiate credits for deferred maintenance which results in lower net sales prices. Since rents are flat sellers can no longer expect that “proforma” rents will add value to the property, which makes realistic pricing even more important.
Right now, I am seeing well priced properties go into contract within a matter of weeks and those priced too high languish on the market. An overpriced listing that stays on the market for more than 90 days without an offer will always sell for less than the well-priced listing.
GRM’s have dropped from 17X rents last year to around 15X rents this year for Southern Marin apartment properties. In central Marin, apartment properties are now being offered for 13X rents.
Apartment financing is still attractive in the low 4 per cent range. I expect the remainder of the year to be very busy for apartment buyers and sellers. The demand for Marin County apartments is strong and the occupancy rate of 96% is the highest in the nine county Bay Area.