Ready to go, under construction, needing TLC or just an ordinary straight forward livable home – they all matter. Buyers come in with all types of requirements and we have learned over the years that there is indeed a buyer for every home…and then some now.
According to BAREIS MLS, Sonoma County had exactly 684 single-family homes left for sale as June concluded – 21 percent fewer than the 868 units that were available as our markets were establishing their pandemic rhythm last year. Sellers delivered just 507 new listings to the market during the month while buyers gained control of another 598 new deals during the period – rivaling last year’s pace and truly only held back due to the lack of sellers participating in our markets. In support of these metrics, completed sales tipped the scales at 590 this last month – 28 percent more than this same time a year earlier - while the median price crossed a new threshold to land at $825,000.
The continued pace of the markets can be measured by the months’ supply of inventory (MSI) and, with vastly growing demands from buyers in our region along with extremely attractive interest rates driving our markets, the data shows MSI hovering at 1.2 as of last month – even tighter than last year at this time. This display of liquidity and activity is among the highest in the seven Bay Area counties we track and, in some part, due to the native demands of households, unique to our region, who are still replacing homes they lost in the Tubbs, Nuns, Kincade and Glass Fire calamities.
MSI is the metric that indicates the number of months it would take to sell the current inventory at the current rate of sales. An MSI ranging from 4.0 to 6.0 is generally indicative of a balanced market, with lower numbers increasingly favoring sellers and vice versa.
Getting down to the details in the town of Sonoma, which submarket includes the hamlets of Kenwood and Glen Ellen, there were 113 homes reported for sale as June ended. This region experienced the addition of 50 new listings during the period – 24 percent fewer than last year - while buyers garnered accepted contracts on 58 more properties. Sellers awarded keys to another 68 new homeowners – maintaining the trend from twelve months earlier – delivering a steady MSI reading of 1.7.
Healdsburg witnessed 30 new listings arrive to the market last month while buyers promptly snapped up 37 homes in new deals – more voracious than even last year. Sellers closed out 35 transactions, a new high-volume record, leaving this submarket with 77 homes for presentation to buyers in July. The robust activity is demonstrated by MSI falling to 2.2.
Petaluma’s Westside remained under extreme pressure from buyers demands with only 27 homes remaining for sale by month’s end – that’s inclusive of the 25 new offerings brought forth during the period. Sellers found their way into 25 new contracts while buyers completed purchases on 27 additional dwellings - holding MSI in the troughs at 1.0.
With intense buying demand, Petaluma’s Eastside supply of inventory is still being measured in weeks not months - to be precise one and a half weeks! June wrapped up with just 12 available homes for buyers to consider - inclusive of the 20 additional offerings unveiled during the period. Home shoppers placed 35 more dwellings into contract while sellers also completed 35 transactions – no surprise as this market continues to capture interest due to is relative affordability in comparison to surrounding markets let alone the Bay Area. With less than a single month’s supply of homes being available – MSI at 0.3 – the metrics dictate values will rise to find their ballast.
With sold’s up 46 percent and available inventory down 25 percent, Sebastopol’s star continues to ascend with sellers delivering just 13 new listings in June - falling severely short of demand as buyers captured another 29 deals during the period. Sellers closed out 43 more sales – a new record volume - leaving 33 single-family homes available for buyers to peruse in July while showcasing an MSI of 0.7.
As the theme remains consistent, we now call it a trend. Essentially, the unwavering requirements of buyers continue to absorb inventories faster than sellers can bring new supply to the market. This creates a strain within the system thereby forcing prices higher to tempt property owners into selling…and this is where we create the magic!