Sonoma County Real Estate Market update through July 2008
Supply and Demand
Every month I receive enough market statistics from Rick Laws, my broker, to fill reams of blog posts, even if there are no such things as reams when it comes to blogging. But you and I would be bored if all I wrote about was market stats.
Still this year more than ever, I am intensely interested in viewing trends looking backwards at the stats and comparing that perspective from that of being (literally) in the field live, with clients and other agents.
The chart below is from Brokermetrics and is based upon actual MLS (Multiple Listings Service) data from Bay Area Real Estate Information Services (aka BAREIS). It looks at the number of newly ratified contracts (pending sales not yet closed) versus the number of new listings month to month from July 2006 through July 2008, for all residential sales in Sonoma County, at all price ranges. This gives the most timely view of supply and demand based upon actual sales data, since pending sales take a couple of months to show up as closed sales. I can also slice and dice by price range, housing type and community, but won’t do that all today, promise.
An apparently typical seasonal rise in sales began in January with newly pending sales in March exceeding those of July 2006, leading to a dramatic increase in pending sales this July 2008 versus July 2006. Meanwhile the number of listings is trending slightly upward but is down overall versus two years ago. The vast majority of newly pending sales consists of bank-owned, or REO properties at the lower end of most markets. Month’s supply of inventory is down to six months, and fairly balanced, at the lowest point in quite some time. The market needs to digest these REO’s to achieve some stability, which it appears to be doing. If you have specific questions about Sonoma County real estate market trends, please contact me and I will pull some data for you.