Novato is Feeling the Crunch

Most of Marin has been insulated by the credit crunch and mortgage crisis that has been giving many homeowners the 1-2 blow. The one outlying city that has not been so lucky is Novato. At the northern cusp of the county line, Novato is vastly different from the rest of Marin and probably feels more a bit like Santa Rosa or even Petaluma than say, a Larkspur or Mill Valley.

When the rest of Marin’s homes hovered around the million dollar mark, many folks headed towards Novato during the housing boom. With more affordable homes, it drew those who wanted to get into the market and given 100% loan-to-value mortgages for their homes. And now, the community of Novato is feeling the aftermath.

The MarinIJ wrote a feature on this insular phenomenon that is happening in northern Marin, calling Novato the “…mortgage meltdown epicenter of Marin.” The foreclosure rate in Marin has doubled since last year with half of the current 706 properties in foreclosure in Marin up in Novato. Year to date, 656 homes in Novato were in some type of foreclosure related action. (yikes!) Homeowners aren’t the only ones affected. The claws of the foreclosure machine are slowly getting its grip on local businesses and the downtown. Business has slowed as less folks are willing to whip out the cash from their wallets.

While there is a very sad story behind the foreclosure, for those looking for some rationality in home prices and possibly some bargains, Novato may be the place, as it is very much a buyer’s market with lots of inventory.

Recent bank foreclosed listings on Redfin:

813 Juniper Pl – $450,000: Not much details here on this one here. The street picture seems decent. Last owner purchased in 2005 for $540,000 before what looks like to be a bank purchase for $460,000 just recently. 85 days on the market.

16 Arbor Cir – 3 beds, 2 baths – $465,000: No interior pictures (these banks have really got to learn how to market a foreclosure!) but one single picture of the front shows a simple and straightforward single family home. No telling past sales info either.

1550 Center Rd – 4 beds, 2 baths – $203,900: Absolutely no info here but street picture looks like this is a townhouse. Fairly large at 1800SF.

605 Fairhaven Way – 3 beds, 1 bath – $399,900: This condo was last assessed for around $450,000. Last owners purchased in 2005 for $536,000.