Leaves Are Falling 🍂 But Home Prices Are Not! 📈🏠
Market Update: Is Sonoma County Real Estate Cooling?
There’s been a lot of buzz about a possible market slowdown in Sonoma County. To clear the air, below we’ve taken a closer look at the numbers over the past quarter to provide both clarity and insight into how we’ll likely end the year. Here’s what we found…
While sales volume slowed in the late summer, so did new homes hitting the market. Months’ supply of inventory still hovered at slightly over a month and if homes continue to sell at the current rate, all inventory will be sold in 1.2 months–indicating a continued strong sellers’ market!
*A balanced market is considered to be 4-6 months of inventory.
Actual days on market dropped significantly year over year by over 33%, meaning a home that took over two months to sell in 2020 sold in just 37 days in the third quarter. Another positive: homes sold on average at 101% of their list price, versus 98% a year earlier.
What does this mean?
It’s not surprising that there was a perception of the market slowing as people took vacations or prepared for back to school, but in reality the numbers indicate more of a typical seasonal slowing in July and August, with a bit of a bounce back as we enter the fall months. Sure enough September saw some new inventory and increased buyer activity, boding well for a strong finish to the 2021 housing market in Sonoma County.
The combination of housing supply challenges, low mortgage rates, and extremely motivated buyers provides a unique opportunity this season. If you’re thinking about making a move, reach out to our team to talk about if it makes sense to buy or sell a house this fall!