If you were one of the many that took a little down time during the recent holiday period, great. With that now behind you its time to refocus on the what you were doing prior, especially if you were in the hunt for your new home or new lot to build your home upon. Our markets saw robust activity – unusually so – and are in the process of blossoming earlier than the typical Spring rush.
The Santa Rosa metro region is shifting to accommodate the new market dynamics that have been thrust upon it as the traditional “bell curve” of activity may be in process of being reshaped while the markets work to sort out the loss of 5,334 homes along with the reemergence of these homes and the lives that once occupied them. According to BAREIS MLS, with 2019 in our rearview mirror, we find the marketplace building on its current momentum with only 241 single-family homes remaining for sale in the city and its environs – a seven percent dip from this same time a year ago – coupled with a level reading indicating another 114 single-family homes found their way into pending contracts during the past month.
The entire municipality introduced only 70 new listings to the market in December while the most recent period also found Sellers handing over keys on 125 completed sales at a median value of $616,000 - leaving Santa Rosa with its’ Months’ Supply of Inventory (MSI) at 1.9.
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 underlying specifics, Northeast Santa Rosa - by far the singular market most impacted by the events of October 2017 and one that will take some time to reestablish itself as the region’s premier locale - saw the introduction of only 21 single-family homes in December. The supply of homes was met with solid absorption during the period as there were only 98 dwellings for home seekers to consider by months end. Buyers embarked on 42 newly initiated escrows – up 27 percent from the prior year - while sellers received closing checks on another 38 properties at a median value of $623,000 - affirming a steadied MSI of 2.6, and further indicating buyers demands for well-priced homes.
Southeast Santa Rosa saw the supply of available properties shrink further to 38 by months end. This submarket debuted just 10 new offerings in December - while buyers captured accepted deals on 14 more abodes. This coveted corner of the city experienced 32 formal transfers of title at a median value of $626,000 – causing the MSI to continue to hover at 1.2 – signaling broad based support for our market to heat up this Spring.
Oakmont saw only eight willing sellers deliver new offerings in December boosting total available inventory to 36 by the end of the month. Buyers found their way to acceptances on eight new purchases while sellers concluded 10 transactions during the period at a median value of $593,000. The activity level indicates a market that has shifted – though sporadically - from a seller’s market to one that is in balance, and in the case of this month’s data back to favoring sellers now with an MSI of 3.5.
Northwest Santa Rosa witnessed 19 new offerings this past month as buyers absorbed 28 of those into accepted deals during the period. Sellers completed the sale of 34 domiciles – at a median value of $580,000 - leaving this submarket with 42 available homes to open the new year with – 28 percent less than a year ago when there were 58 in play and further affirming the broader marketplace demands with MSI collapsing further to 1.2.
Southwest Santa Rosa embraced the introduction of 12 new properties in December, thereby bringing the total available to 27 by months end. Buyers jumped in to gain control of 22 new homes with sellers closing out another 12 sales at a median value of $510,000 - leaving this market with an MSI of 2.3.
Having just witnessed some beneficial global news - especially for our country - in trade deals with China, Canada and Mexico, the business markets are chattering more about a significant extension to the historic expansion we have been living through and although there will always be naysayers in every market don’t get caught asleep at the wheel now. Get engaged and plan for your future before another chance passes by.