Sonoma County Housing Market Breaks Records in 2020!
After the coronavirus pandemic sent Sonoma County homebuying into a tailspin last spring, the local housing market rebounded to have a banner year, posting a record annual median home price and the most houses and condos sold in seven years! As we embark on a new year (we can’t believe it’s already February), let’s take a look at some of the important real estate highlights from 2020 and what experts are forecasting for the spring season. [caption id="attachment_21108" align="aligncenter" width="408"] *Note: The median price for single family homes in Sonoma County is $700,000, slightly higher than $675,000 mentioned in this report which includes condominiums.[/caption] What This Means For Buyers & Sellers: Low inventory, high buyer demand and increasing home prices have resulted in a seller’s market as we enter 2021. Historic low interest rates are drawing more buyers, especially millennials, into the marketplace. Buyers are flocking to Sonoma County from the Bay Area due to changing household needs and work-from-home flexibility. Despite home prices increasing, Sonoma County is still considered an affordable option compared to the Bay Area with a median single family home price of $700,000 vs $1.06 million. What To Expect As We Look Ahead to Spring 2021...
Months Supply of Sonoma County Entry Level Real Estate Declines Sharply
One of the most interesting measures of the tension between buyers and sellers in a real estate market is the "Months Supply of Inventory" figure. What this number tells us is the number of months it would take to sell the existing number of homes for sale at the present rate of closed sales. Buyers Market or Sellers Market? Generally six months of inventory is considered to be a market balanced between buyers and sellers. Anything less, and sellers are advantaged in negotiations. Anything more, and the trend favors buyers. Two years ago in Sonoma county, there were 6.2 months of entry level inventory for sale. When the first wave of foreclosed properties began hitting our market in force in 2007, the inventory piled up to a high point that so few properties were selling, as many more were coming on the market. Consequently, MSI (Months Supply of Inventory) ballooned to a 14.8 months supply, a strongly favored buyers market. Early in 2008, banks began slashing prices and buyers have been increasingly active ever since. (See my posts under market updates beginning in March to track this trend.) The lower priced properties, driven by foreclosures, have steadily been absorbed by first time buyers and investors. They have been gobbling up REO's so quickly that now there are only 2.7 months of inventory available at the current rate of new listings and sales, a strongly favored sellers market. If you are a buyer interested in purchasing an REO home, it is important for buyers to be prepared for the market realities especially for the most solid homes in the best locations. 1. You must have a STRONG pre-approval. In many cases first time buyers will be competing with all cash investors for the same properties. 2. You may need to make multiple offers on a stream of properties before you land the right one. 3. It ALL DEPENDS. Make sure you have a committed working relationship with a realtor who is knowledgeable about the changing market, and who knows how to present and negotiate your offer(s) in the best light. Just as sellers have learned (in some cases!) to be realistic, it is important for buyers to do the same. Happy hunting! ...
Tour Twitter heard on the Grapevine–mixing metaphors and maybe technology
It is going to be a gorgeous day to check out the latest West County new listings (Sebastopol MLS tour) tomorrow--I will have on my walking shoes and sunscreen, and James the trusty navigator on my TL will be well rested so he can plot out the best driving strategy for me and Izetta and hopefully another pal or two so we can economize on gas. (author's note:Â I had hoped to Twitter my way through tour but that didn't happen this week, maybe next time.) Hopefully there will be some good munchies provided by the hosting agents since for some reason there are a pile of properties this week when there have been very few the last week or two. It is important for listing agents to incent their peers to tour their new listings, especially in a crowded field. At one property last year (a country property listing of mine in Sebastopol) had so much going on that in order to convince agents to wait around and smell the roses, i.e. learn all the property had to offer, I had a masseur doing chair massages in one room, a lender pouring hot-mulled wine and apple cider in the kitchen, and bagels, lox and cream cheese for all. Two of us directed traffic and parking as well. I lost my voice after hours of tour-guiding. It was worth the effort because we had 3 offers the first week and sold for over asking to a buyer who is now very happy in his new country home. This in last year's down market. What kind of creative broker tour incentives have you seen? Anyway, I will report on the latest new West Sonoma County properties after tomorrow's tour. Heard on the Grapevine: In Healdsburg, I know of a great new listing coming up in early July--a classic Craftsman bungalow walking distance to the Healdsburg plaza. About 1600 sf with a new roof and paint, new deck and some interior updating, but a lot more room to improve (including the stand-up full length attic), or liveable and rentable now. It will be very competitively priced on a street with some gorgeous vintage homes. More info in the coming weeks. Enjoy the lovely summer solstice week and tune back in for the tour and gravevine reviews and news. I also just...
Drilling down to look at the foreclosure market in Sonoma County
Sonoma County Foreclosure Active Listings by Area Of the 404 active foreclosure listings in Sonoma County today, here is a snapshot overview. For a more detailed look, and information on specific properties available on your own private web portal, please contact me directly and I will email you a report. Of the 404 properties available today, the average number of days they have been on the market is 63 days. Buyers on top of their game are jumping on the best properties in the best locations (surprise, surprise) and many are subject to multiple offers, but generally under asking price. Banks are sometimes offering concessions such as credits to closing costs for certain repairs, but it really depends on the property and the competitive landscape. Of these properties, the minimum price is $101, 200. The maximum price is $1,249,000. The median price is $309, 975, well below the median sales price for the county. Click the link above to get to a Google Doc which breaks the foreclosure market down by area within Sonoma County. Cotati/Rohnert Park, parts of Santa Rosa, Windsor and East Petaluma are the most effected whereas communities such as Sebastopol and Healdsburg have very few foreclosure properties on the market. Also, the price points tend to be the lower ones with the median price at just over $300,000. Sunday April 27th Update: Just popping by to update yesterday's post with a link to today's article on the hardest hit parts of Sonoma County by Michael Coit of the Press Democrat. I guess we are on the same wavelength today. Foreclosure hot spots Three of every five mortgage defaults last quarter occurred in three sections of Sonoma County By MICHAEL COIT THE PRESS DEMOCRAT ...