It’s October in Sonoma County, and I’m ready for all things fall! 🍂
From cooling temps and changing leaves, to cozy sweaters and decorating for the holidays —I can’t wait! Can you?
Fall is the world’s way of embracing change and often prompts us to reconsider our own routine and home life. Maybe that means adopting a new healthy habit, getting up earlier to make the most of shorter days, or even a change of address.
Where did summer go?
We’re officially in that in-between season of summer fun and fall productivity. I don’t know about you, but I’d personally like a few more days of beach, pool and sunshine! But alas, the season is changing, and so is the Sonoma County housing market!
This year, real estate has seen some crazy twists and turns. From roller coaster interest rates, inventory shortages to fluctuating pricing, and a two-week MLS outage, what have we not seen?
Welcome to July! Can you believe we’re already in the thick of summer in Sonoma County? I’m loving the blue skies and a healthy dose of sunshine, however the summer months can be a busy time.
Our calendars fill up fast with vacation plans, a plethora of new outdoor events to attend and additional time spent working on the house and in the garden.
It’s important to remember to slow down and literally “smell the roses.” Enjoy the longer days, savor a glass of wine and carve out time to reflect on our goals for the year.
How are we progressing? How do we feel? What’s working and what’s not?
If real estate is a goal that’s on your mind, you’re not alone! This year has been a change of pace for both buyers and sellers. Many have put their plans on hold as they wait out the interest rate hikes and rising home prices.
Keep reading below for more on how our housing market is performing and a list of ways to enjoy summer in Sonoma County!
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.
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.
Market Talk It’s officially fall and inventory is on the rise around the country. View the full report here: September 2022 Sonoma County Market Update. We are seeing the typical seasonal bump in new listings in the Wine Country. However, rising interest rates affect some would-be sellers too. They are holding off putting their homes on the market since they would be doubling their interest rate when buying a replacement home unless they purchase cash of course. And, there are still plenty of buyers in the market place searching for homes! Mortgage interest rates are at their highest level in more than 14 years, sales inventory has ticked up a bit but is still historically low, and fear of a looming recession is still a topic of discussion in the media. What we do know is there are still buyers actively shopping for homes, and desirable properties that show well and are priced correctly have been going into contract, in some cases even with multiple offers and well over asking. One recent country property in Sebastopol priced at $2 million sold for $3,150,000! It’s very important that buyers understand there are a number of loan programs out there that can help offset the higher monthly payment at today’s rates, and rates can vary significantly from lender to lender. You want to make sure you shop around and look at all options, from 2-1 rate buy down programs to credit union rates and special institutional lending programs. Be diligent in your research before choosing a lender to work with. And a flashback to earlier years, some sellers may even have mortgages that are assumable at yesterday's low rates. In the past those were typically adjustable mortgages so again it is important to do careful research. Traditionally, markets like this will stabilize, but when that happens and what "stability" looks like is up in the air. Reach out to your trusted real estate professional to help you decide if it makes sense to make a move now or wait! ...
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...
Sonoma County Market Update: It's our pleasure to bring you the Corcoran 2021 Q4 Real Estate Market Report. Flip through this album depicting real estate sales stats town by town and county wide! Even though we're well on our way to a busy market in 2022, it's important to pause and reflect on how the last quarter provides context for the housing market trends we see today in Sonoma County. Here is a quick recap. Sales activity remained steadfast in Q4. Sales did slow down a bit over the holidays, which is a typical seasonal pattern. The median home price reached $769,000, which was a 9.9% year-over-year increase. Overall, we ended 2021 with solid growth (exceeding predictions) for Sonoma County real estate and the promise of another fruitful year ahead. Some of the hottest local markets right now include: Sebastopol (29.9% median price increase!), Sonoma & Healdsburg! Throughout the county home prices saw significant price appreciation although unit sales were down when compared to 2020. Sonoma County Market Update | Q4 Market Highlights: >>>VIEW THE FULL MARKET REPORT<<< Home prices continued to trend upward in most Sonoma County communities as inventory constraints remain. For example, year-over-year prices in Sonoma exponentially increased in the fourth quarter to a median sales price of $1.2 million (+42.4% increase year over year). Sebastopol and Sonoma were tied for the highest median sales price in the county at $1.2 million. What To Expect This Year...
2022 Real Estate Predictions: The real estate market in 2021 saw unprecedented highs here in Sonoma County. We enjoyed a golden year of home price appreciation, low interest rates and limited inventory. Creating the perfect storm for sellers to cash in on all the equity gained! With mortgage rates expecting to increase and many federal support and relief programs set to end in the new year, we are predicting the market will look a bit different by the end of 2022. Here’s what the future holds for real estate in 2022. According to Dr. Lawrence Yun, Chief Economist at the National Association of REALTORS® and industry leader, Brian Buffini, who’s renowned for his historically accurate market predictions. If you would like to see their video presentation from December, the link is here. Important: These trends focus on the market at the national level and trickle down to impact us locally. For a more in-depth dive on Sonoma County's local housing market stats. Visit our blog: Sonoma County Market Update | Q4 2021 1. Multiple Offers Still a Thing, But Not as Hectic Looking at the real estate’s performance heading into 2022, Yun stated that the multiple-offer frenzy that took hold in the spring of 2021 had died down with homes on the market a bit longer than before—but they are still selling fast. “People rushed to buy homes during the pandemic,” Yun said, pointing to a 7% increase in home sales from 2020 to 2021—from 5.7 million to 6 million, respectively. Yun predicted, however, that there will be a 2% reduction in sales this year as mortgage rates increase. Buffini predicted that by the summer of 2022, there will be less over the top offers as first time homebuyers will be pushed to their max with increased mortgage rates and higher inflation. 2. More Inventory in Spring 2022 The housing shortage in conjunction with high buyer demand increased competition throughout 2020 and 2021, though new construction of single-family homes has been increasing, and it is predicted that there will be more inventory in the spring of 2022 as compared to last year. Yun also indicated that more people are likely to list their homes now that federal support and mortgage forbearance programs are either ended or are slated to end this year. 3. Mortgage Rates Will Tick Up to Nearly 4% by the End of 2022 Mortgage rates are predicted to climb to 3.7% by the end of 2022, affecting first-time homebuyers...
It's our pleasure to bring you the Corcoran 2021 Q3 Real Estate Market Report. As we approach the end of a historic year for SonomaCounty real estate, 2021 sales activity remains steadfast. Home sales saw an increase by 4.5% since 2020’s third quarter and communities throughout Sonoma County continue to boast strong housing market sales. Watch the video below for a quick recap on what's happening in our local real estate market. The big news for Q3 is our market has fallen back into a more predictable seasonal pattern. We experienced a slight dip in the late summer months, due to vacation plans, and since Labor Day sales have picked back up debunking the myth that we may be headed for a market crash. By the end of September home sales were up 4.5% year-over-year and days on market fell 33.3% to 42 days. Additionally, homes sold for 101% of their asking price and inventory remained low at 1.2 months. What To Expect This Winter...