Sonoma County Real Estate News Letter
- Ask Rigzin
- Rigzin's Monthly Column
View the entire report as PDF with detalied information for county markets such as Santa Rosa, Sebadstopol, Healdsburg, Cloverdale, Petaluma, and Rohnert Park, Cotati. Median prices softened one percent in Sonoma County in the third quarter as single-family detached home sales fell 26 percent, year-over-year, according to a report released today by the research division of Prudential California Realty based on an analysis of MLS data. Listing inventory remained stable as some homeowners chose to pull their homes from the market and wait until conditions become more favorable for sellers. Although the sales environment was generally sluggish, there were areas of strength with sales of singlefamily homes in Healdsburg jumping by 34 percent, year-over-year, and median prices in Sonoma softened by 1.3 percent. Sales activity was uneven, with pockets of upper end vacation homes attracting significant buyer interest and selling quickly, while properties in city subdivisions of Santa Rosa and Rohnert Park struggled to yield offers amid a glut of inventory.
Short sales and bank-owned properties with aggressive price reductions created strong competition for homes in these areas, as well as unique opportunities for buyers and investors to purchase a home at a reduced price. Sales are happening successfully when motivated buyers meet motivated sellers --people who have a pressing need to buy or sell. Otherwise, any hesitation on the seller side to make price reductions or concessions and the buyers will back away. Sellers who were competitive in their pricing strategy from the start, listing their homes at or below a comparable recent home sale, were most successful in attracting offers from buyers. Buyers were more interested in these homes than in properties where they would have to negotiate through counter-offers to reach fair market value. There are considerable opportunities for buyers in this market, particularly in the more densely populated areas of the county where inventory levels are higher. Navigating through short sales and foreclosures can be time consuming but ultimately very rewarding for motivated buyers.
Click here for Sonoma County Second Quarter Housing Data
Click here for Sonoma County First Quarter Housing Data
Well the market has shifted quite a bit away from what we have gotten used to in the last four years.
Sales dropped quite a bit in April. Home sales were down 16.8% from March, and off 24.6% compared to last year. Condo sales are down 25% from the month before and were off 32.1% year-over-year.
The median price for homes gained 3.7% to $595,000, an annual appreciation of 0.9%. This is the third month in a row the year-over-year appreciation has been less than 1%. The median price is down 3.8% from the peak of $618,450 reached last August.
My advice? For buyers, if you're an investor, you are going to have to work a lot harder to find the deals. If your planning to buy a home to live in for awhile, do it. Just don't do it with an interest only or short-term mortgage, rates are rising.
For sellers, right now it is all about the pricing. Price it right and you will get offers. You need offers to begin negotiating. Price it too high and your property will sit and lose momentum and by the time you start dropping your price you will have to lower it below where it should have been priced in the first place. I have seen this happen first hand.
The real estate market is very hard to generalize. It is a market made up of many micro markets. For complete information on a particular neighborhood or for an evaluation of your home's worth, call me.
If I can help you devise a strategy, call 707 328-6193 or click the home value link |
