Sonoma County is a very unique corner of the world. We have everything from ancient towering redwoods to the crashing waves of the Pacific ocean. It is no surprise that this would be a popular place for buyers to look into investing in Real Estate. The way homes are priced, what they sell for, and what people are willing to pay for homes here is different than what you would see in other parts of California. Millar and Company has compiled a market analysis for you that outlines market trends for January 2015 and compares them to the market conditions from January 2014.
Homes For Sale vs Homes Sold
The number of homes on the market vs the number of homes that have sold is very informative about what is really going on in the market. In January of 2014 there were 600 homes listed for sale in Sonoma County. However January of 2015 only had 495 homes listed. This was a 17.5% decrease from last year. Typically an area will have growth due to new homes being built, and that growth will stimulate the local real estate market by adding inventory. Here in Sonoma County there have not been a lot of housing starts. The reason for this is that a percentage of the available space in Sonoma County is rural, up on a hill, or close to a body of water and does not have sewer access. In order to build in these areas one would have to put in a septic system, and due to environmental protection laws, it is extremely difficult to get a permit to put a septic system on this type of property. What does that mean? Well, it means that, since there isn't much being built, inventory is low and the value of each home increases with the amount of demand that is present. In January of 2014 there were 315 homes sold in Sonoma County, however in January 2015 there were only 248 homes sold. This shows a 26% decrease in the number of homes sold throughout last January and this January. This decrease can be caused by a number of different factors including weather conditions, interest rates, and low inventory. If there is not a lot on the market then there are not as many houses selling. In this case, the weather has been gray and foreboding causing many people to stay inside instead of going out to look at properties, and inventory has been low making it hard for buyers to find what they are looking for. Many seller's tend to list their homes in the spring and summer months and buyers are more commonly out and about throughout those months as well, so we are hoping to see both the inventory and the number of homes sold increase in the coming months.
Average Sold Amount
Another indicator of market conditions is what the average home is being Sold for. The value of a home is the combination of what a seller is willing to accept for it and what a buyer is willing to pay for it. The average home has three or fewer bedrooms and two or fewer bathrooms. There are, of course, homes that have more bedrooms and bathrooms, however for the sake of this market analysis, we have limited the statistic to fit homes within that range. According to the BAREIS MLS TrendGraphix Report, the resulting sold price of the average home in January 2014 was $498,000. In contrast January 2014 saw the average home being sold at $520,000, which can be attributed to the economy growing stronger and buyers having more money available to spend on a home. Also, it indicates that the market has shown growth over the last year and is holding steady.
If you are looking to sell your home in Sonoma County now is the perfect time to get top dollar on your home! If you are a buyer and you are thinking about placing an offer on a home it is important that you make sure to get your offer in as soon as you can because homes are being snatched up left and right and you don't want to lose the home of your dreams because you didn't get your offer in fast enough! For more information about local market conditions call 707-217-1786!
Local Sonoma County Real Estate Agent
Regardless of where you are looking to buy or sell a home, you should definitely consider getting a local agent to handle your transaction. This is vital to sellers because a local agent will be able to accent your properties best qualities, and how they are complemented by the area in which you live. Your agent will know of any problems that may arise and what to expect in your area. It is equally important to buyers because a local agent knows the terrain, the community, and the specific market conditions, and will be better equipped to help you make decisions, and to keep you informed of any changes in the market. David R. Millar (BRE#01354778) is a local Sonoma County real estate agent with years of experience and a deep connection to the Russian River community. If you have been thinking about buying or selling a home in Sonoma County call or text 707-217-1786 today. David will help you navigate through this growing marketplace with ease and precision. If you would like to learn more about us check us out on Facebook, Twitter, Google+, and Youtube!