Sonoma County Real Estate Market Update
If you are interested in buying or selling a home in Sonoma County, California, it is important to understand the current conditions of the marketplace, as it stands. I've compiled a list of California and Sonoma County, California statistical highlights for the month of August 2012. This compiliation includes stastics from the cities that I service such as Santa Rosa, Windsor, Healdsburg, Rohnert Park, Cotati, Sebastopol, Petaluma, Forestville as well as St. Helena, Calistoga and of course Sonoma.
Here is a quick snapshot of the numbers:
As you can see from my report there are several key points indicating how real estate is trending in Sonoma County:
- Number of Single Family Residences sold is increasing
- Median home price has increases over 13% since last year (and the highest value since December 2009)
- The average months on hand of inventory remains low at slightly over 2 months
- The average days on months for homes sold has been steadily coming down
There are three distinct segments in the current real estate market:
- REO's or Foreclosures
- Short Sales
- Equity or Conventional sales
Sonoma County is no exception and although the percentage of REO and Short Sales has come down significantly, they still represent a large part of the market and influence home values. Some recent key distressed market statistics for Sonoma County, California include:
- Short Sales & REOs combined for 30% of all homes sold in Sonoma County in August 2012
- Median days on market for these distressed sales was 113 days
- The number of short sales has been increasing, while REOs have been decreasing
- In fact, June 2012 was the biggest month ever for short sale transactions in Sonoma County
- August REO sales were down 53% compared to August 2011
So what does this all mean? It means, the market has been shifting without too much fanfare. I realize that doom and gloom sells better in the news environment, but real estate has been clawing back, here in Sonoma County, California.
If you have been considering the purchase of your first home, this is well and truly an idyllic time to make the move. Interest rates are still hovering around all-time lows and the impact that rates have on your monthly payment is dramatic, especially when you plug in Sonoma County, California median home price into the equation.
See for yourself and play with the numbers with this mortgage calculator and various interest rates to see how your monthly payment will change.
In addition, Sonoma County homes for sale are currently at prices virtually half from the peak of the market. Home affordability is higher than it has been in decades.
If you are a current homeower and have been considering making a move to a new home, upsizing, downsizing or relocating - you have a unique opportunity at hand. Not only can you benenfit from the great interest rates and lower home prices on your next home purchase. Yet, the shift to a sellers market has really put savvy sellers in the driver's seat. Inventory is scarce and buyer's have begun understanding they need to take action.
Provided a seller takes the proper steps, prior to and during the sale of your home, they have an opportunity that hasn't really been there in some time. Properly prepared and marketed homes are garnering multiple offers. Indeed, the best positioned homes are selling above asking price. That kind of selling opportunity has not happened in years in our market.
It's a bit odd in stating, yet this market really still has tremendous upside for both buyers and sellers. There are huge positives on both sides and with the support and assistance of a qualified REALTOR by their sides - to navigate the landscape, interpret the marketplace, provide guidance and maneuver through the negotiations and the transaction process - both a buyer and seller can have reason to be ecstatic at the end of their transaction!
Last thing to keep in mind.. Real estate is very local thing. Even within Sonoma County, California the real estate market changes within each town and individual neighborhoods. Find a REALTOR you know, you trust and you like and that understands the hyper-local market of your areas of interest. It will be of great benefit to you!
Thinking about taking that next step? Check out current Sonoma County, California homes for sale.
Best of Luck! Ciao!
- Doug Lyons
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