February 2023 Sonoma County Market Update
The spring housing market is heating up! With inventory in the North Bay down 50 percent year-over-year, we are continuing to see multiple offer situations and sales prices going over asking. While it’s usually not at the same rate or increase that we saw over the last few years, it does tell us that buyers have entered back into the market and sticker shock of the sharp rise in interest rates has settled a bit.
Sonoma County Spring Housing Market Predictions
One thing I love about this month, is the mustard, which pops up in our vineyards towards the end of winter. These beautiful blooms are a welcome sign that spring is right around the corner and with all the rain we are getting it is stunning!
Speaking of spring, the real estate market in Sonoma County is starting to heat up! Rising interest rates, combined with high homes prices led to a slow fall and winter season. A stark contrast from the hot market we had leading up to summer 2022.
2022 Sonoma County Summer Housing Market Update 🏡
Do you have questions about Sonoma County's housing market? As quickly as mortgage rates are rising, the once red-hot market is showing signs of cooling. Home prices are still historically high, but there is some concern (fueled by the media) that they will ease up as well. Today I want to run through some of the latest trends we've been seeing this summer and discuss what they say about the state of our market. For a more detailed overview, be sure to check out the Corcoran Q2 2022 Real Estate Report. First let's address a question I have been getting a lot lately: Is today’s housing market in the same predicament that it was over a decade ago, when the 2007-08 crash caused the Great Recession? The short answer is: no. America’s housing market is in far better health today. That’s thanks, in part, to new lending regulations that resulted from that meltdown. Those rules put today’s borrowers on far firmer footing. But what about rising interest rates? During the pandemic, rates were historically low, but that’s starting to change. For most of July, my clients received interest rates in the 5.5% range. While that seems high, it’s not too far off from where rates were before the pandemic. Why a slight slowdown in our market might actually be a good thing...
Are we in a Housing Bubble in Sonoma County?
I cannot count the exact number of times I have been asked if we are in a housing bubble in Sonoma County. Every agent I know all over the US has also been asked the same question--it is no wonder, as prices seem to be climbing ever upwards and we all (or most of us) remember what happened in 2008-2010! What is so different about today? The Great Recession was driven by excess and abuses in the housing and mortgage markets. This national boom in real estate has been fueled by people reevaluating their circumstances due to Covid and sustained by record low interest rates and a shortage of housing. Brian Buffini and Company produced this solid infographic explaining the differences and root causes in both markets. ...
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...
Sonoma County Median Home Price up $50,000 from Last Winter's Low
The median price of a Sonoma County home was $340,000 at the end of November, down slightly from $345,000 the previous month but up for the low hit last February of $290,000. This reflects several trends: shrinking inventory due to increased sales, initially led by the surge of entry-level home sales begun last spring, and followed by a late full increase in the sale of upper-end and mid-range homes. Most agents I talk to are upbeat about the coming market this winter and spring. We also wonder what the impact of the so called shadow market of foreclosures will bring to the Sonoma County housing market. If you were considering selling your home but reluctant due to the tough market conditions of the last couple of years, you might think about putting your home on the market this winter. Even with the holidays, there are a lot of buyers still active in the market. Please contact me if you would like to explore your options! ...
Sonoma County Real Estate Sales Update
Year over year the median Sonoma County home price dropped 5% to $359,000. However, the apparent bottom for this market (whether a V, U or W is yet to be determined) was in February when the median price was #315,000. Some of my smart buyer clients (you know who you are) are happily ensconced in homes they bought in January and February, sensing the (a?) bottom had arrived....
2008 Sonoma County Real Estate: Three Quick Sales Trends
These three graphs tell the quick story of pricing, supply and demand trends for housing in Sonoma County from December 2007 through 2008. But the real story for your home depends on the price range for your house and the part of the county in which you live, or seek to live. You cannot automatically say that every home in the country dropped 30%. The price dropped most steeply in those communities with high rates of distressed housing: West Santa Rosa, East Petaluma, Windsor and Rohnert Park/Cotati. But, on average, and in summary: The median price dropped 30% year over year. The number of newly ratified sales contracts grew steadily all year and lead to a 184% increase year over year. Months supply of inventory dropped dramatically (73%) and steadily all year, exceeding the drop in prices. From a very strong buyers market in December '07, with over 14 months supply of homes at last December's sales rate, this December saw only 3.7 months supply. Six months is considered a balanced market. Anything under is a seller's market--in this case the banks who own nearly half the properties sold. ...
October Sonoma County Real Estate Sales Snapshot
This week I received this quick sales snapshot from Rick Laws, my broker at Coldwell Banker.  It provides a 13 month overview of Sonoma County residential sales activity at all price ranges and in all locations county wide. Sales activity and area trends vary widely by price and location but this is a quick view based upon MLS data pulled by Brokermetrics. In about a week I will have more detailed information available covering the various price points and separating out condo activity. Sonoma County Real Estate Market Dynamics October 2008                                Oct 07       Oct 08        # Units Change       % Change Under contract      227             604                       377                     166% Sold                      227              488                        261                    115% New listings           530              551                          28                      5% The biggest takeaway here is that this is the first time in over two years that the number of newly opened escrows has exceeded the number of new listings.  Despite everything that happened in the financial markets in October, the number of newly opened escrows was up 166% and hit its highest point year over year. In addition, the number of closed escrows reached a new high for the year. We all know that not every opened escrow will close-but the number of newly ratified sales continues its upward trend, and bucks the national trend. The tail wagging the dog in this market continues to be the REO (bank-owned) home at the low end with an increasingly high volume of sales under $500,000 for both single family homes and condos. Sales through October seem to be driven (this is anecdotal) equally by first time buyers or owner occupants and real estate investors....
The Best of Healdsburg and Sonoma County–visit our Open House on the web
My wonderful client Jill is an excellent horsewoman. She and I met riding on Fred MacMurray's beautiful Twin Valleys ranch on the border of Healdsburg and Forestville. It is only fitting that her wonderful classic Healdsburg bungalow be the subject for an innovative open house this Sunday from 1-4 PM. Jill get's what were doing so she was very excited to allow Trulia and me to set up a live webcast on Trulia's blog for the first open house at her home at 414 Piper Street. Only concern she had that it would be like the Truman Show. We thought this home and its fantastic close to the Healdsburg plaza location would appeal to the type of people who would be watching the Trulia blog who may be frequent visitors to Sonoma County and appreciate the finer things that a community such as Healdsburg has to offer. While Healdsburg is about 80 minutes north of the Golden Gate Bridge, it is a very sophisticated community with country charm. Since the early 80's when I used to visit good friends Joan and Larry Franceshchina, I fell in love with the wine country of Sonoma and eventually made a home here. Since 414 Piper Street would make a great weekend getaway or fantastic tele-commute location I thought it would be a great fit for the folks on Trulia to see and appreciate. So tune in Sunday from 1 to 4 pm or thereabouts. Maybe you will fall in love with 414 Piper Street, Healdsburg. FYI, this property has an excellent walk score of 83, meaning many amenities and services are available with a block or three or four. Just park your car and enjoy....