May Sonoma County Real Estate Update
“Price is what you pay. Value is what you get.”
– Warren Buffett
I’ve been pondering this idea lately. The importance of value over price in decision-making.
Do I buy organic because it’s better for me, even though it’s more expensive? Do I invest in key wardrobe pieces that will stand the test of time or opt for the Amazon version?
We currently live in a price-sensitive world where even those who are considered “wealthy” are having to contemplate this choice due to the rising cost of living. It’s at the core of every purchase we make… including our homes.
Here are some thoughts I have on this, as it relates to real estate…
While price is a straightforward number (and something that must be considered), value encompasses a broader perspective and includes long-term benefits and overall satisfaction.
Where you live is a heavy decision to make. It directly impacts the quality of your life, and in my opinion, should not be based solely on price.
If you have found yourself torn between price and value, when it comes to buying or selling your home, I’d love to hear from you. One of my favorite parts of this business is getting to know my clients and helping them discover win-win solutions where price and value can co-exist.
Now that I’ve got that off my chest, let’s look at the Sonoma County spring market! There have been some noticeable shifts that occurred in May and I suspect we will continue to see things morph as we inch further into summer and towards the fall elections.
The spring market continued its surge in May, with continued improvement in inventory. However, the surge in inventory was not matched by a surge in sales. In fact, the number of single-family homes sold in April and again in May reflected a 7 percent decline in sales volume over 2023. Why? Perhaps it was because the Fed did not drop interest rates this quarter as many had expected they would.
Overall the number of residential sales showed an increase, but only when you combine single-family and condo sales. Higher condo volume possibly reflects buyer price sensitivity as they are a more affordable price point.
The number of homes sold was up in many areas, but not all. Time on the market, overall, still remains quite low, with the majority of areas under two months and several places in the Bay Area under just three weeks.
Compared to the same period last year, the median sales price in Sonoma County for single-family homes increased 4.3% to $890K; condos/townhomes decreased 4.3% to $450K. Average days on market increased slightly at 46 days for single-family homes and 38 days for condos/townhomes.
When considering the sale of your home or purchasing a new one, it’s powerful to have an advocate in your corner to be your counselor, negotiator and facilitator for your entire real estate journey–that’s what I do. If you’d like to discuss your options and opportunities to make the most of this market, let’s talk.
pambuda@gmail.com | (707) 480-4142
Sonoma County is the perfect destination for summer fun! From paddling the Russian River to hiking the Redwoods to exploring our many parks, festivals, farmers markets and outdoor concerts — there are endless ideas! If you have little ones to entertain and are looking to keep them busy this summer, print out this fun checklist for them to complete before school is back in session.
