Q1 was a breath of fresh air for Sausalito after lack-luster 2021 results. Interestingly enough, surrounding markets didn't perform nearly as well as Sausalito in Q1, yet out-performed throughout 2021.

Being a low supply market, we're used to seeing homes get swooped up within ~30 days of listing, even at the luxury price points (especially at the luxury price point, actually).

Condominiums jumped ~25% in Q1, and are still seeing high traffic at open houses and low days on market compared to the norm.

The median market continues to steadily climb. A slow March pulled the average down to $2.64M, whereas after mid-Feb it was trending toward a $3M average. Expect blistering hot demand for any turn-key median homes.

The luxury market popped in Q1, with 4 major sales between $3.9M & $5M.

The Condominium Market

The condominium market in Sausalito jumped in Q1 of '22, significantly ahead of what we saw in 2021. At an average price of $1,273,000 over 7 sales, the market is up ~ 25% from a '21 average of $1,027,000 per condominium. While it could be argued the desirability of the 7 condominiums in Q1 was also significantly above the '21 'average,' $1000/foot average in Q1 from $838 in '21 signals

With interest rates on the rise, I actually think there could be a second wind for the Sausalito condominium market to climb higher. As buying power in the market at the median price point for single family homes continues to decline (rising rates = declining buying power), I think we’ll see buyers who are seeing themselves outpriced in the housing market shift their attention to the best-available condominium market, and west-facing Sausalito properties should continue to reign supreme as best-available in Marin.

The Median Market

The median single family home increased to $2,640,000, slightly above Mill Valley & Larkspur, and ~ $1M behind Tiburon. As with any low inventory market, averages are dictated by the supply. February saw the median jump above $3M, for example, but a slow March dragged us down to a $2,640,000 average purchase price. Expect a turn-key home with views to be highly desirable to the current buyer pool.

The Luxury Market

Sausalito's luxury market saw a nice increase in Q1, also. 4 major sales from $3.9M to $5M showed the luxury buyer pool is still seeking legacy properties in Sausalito, even in the face of rate hikes and a cool-off. Luckily, the demographic of buyers for luxury properties in Southern Marin are mostly protected financially from macro-economic events. Expect to see consistent demand for turn-key homes.

Projecting Ahead To Next Month/Quarter

With Sausalito's typical low supply/high demand dynamic, it's hard to see the market slowing down anytime soon.

There are 6 projected rate hike rises between now and Q4 of 2023, which will drastically decrease buying power for buyers in the market, yet the typical buyer we're seeing in Southern Marin is not as affected by macro-environmental conditions as buyers in other markets are.

I would anticipate the condominium market to level off at some point, similar to what we've seen in Mill Valley/Larkspur, but the single-family market should remain strong throughout 2022.

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