Encouraging Market Signs
Even though we are seeing a fewer number of newly listed properties arrive to market in a year-over-year measure, we are seeing a slightly longer period of exposure for some already listed properties which has allowed our available inventories to rise modestly – pointing to signs of market volume increasing from the tranches encountered in 2023 when we touched 30 year lows.
Within the metropolis of Santa Rosa, according to BAREIS MLS, March’s data points to a marketplace continuing with a steady seasonal demand level with 176 single-family homes remaining for sale in the city and its environs – 27 percent greater than this same time last year and a welcome relief to buyers who have gone unsatiated over the past few years. Home seekers laid claim to 122 single-family homes during the past month – six percent fewer than last year at this same time - while the entire municipality introduced 129 new listings to the market during this period – two percent less than in 2023. The most recent period found Seller’s handing over keys on another 108 completed sales – 11 percent behind the 122 dwellings that traded hands twelve months prior.
Santa Rosa recorded a Months’ Supply of Inventory (MSI) level of 1.6 – continuing to affirm that sellers have greater influential impact on the marketplace than buyers. 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 indicative of a balanced market, with lower numbers increasingly favoring sellers and vice versa.
Within the five boroughs of the city, Northeast Santa Rosa – the North Bay’s most active submarket - saw the introduction of 47 single-family homes in March – seven percent greater than this same period a year ago. The supply of homes was met with strong demand as there were only 88 dwellings for house hunters to consider by months end – 38 percent more than during the same period last year. Buyers managed to absorb 45 homes into new contracts – 10 percent ahead of last year - with sellers receiving closing checks on another 42 properties – five percent greater than in 2023 - resulting in MSI steadying at 2.1. Keep in mind that in this sector some of the new listings posted are offerings for homes under construction, which adds some unrealistic bulk to what is really available to purchase now, unlike most other sub-markets throughout the County.
Southeast Santa Rosa saw the supply of listed properties rest at 22 when April opened – eight percent less than just a year earlier as well as another new monthly low. This submarket debuted merely 19 new listings in March – 44 percent behind last year’s figures - while buyers garnered accepted offers on 20 additional dwellings – 35 percent fewer than a year earlier. This coveted corner of the city experienced 14 formal transfers in the period culminating in MSI rising a smidge to 1.6.
Oakmont has been experiencing exceptional demand from buyers this month, again, with sellers delivering 19 new offerings to the marketplace. Buyers jumped in and grabbed 25 new deals – the most in over two years - while sellers closed out 15 sales leaving this region with 14 available homes for buyers to pursue in April, allowing MSI to slump mightily to 0.9.
Northwest Santa Rosa saw buyers advance to control 20 more deals while leaving just 28 single-family homes available for sale at the beginning of April. Sellers committed 22 new offerings to the market in the period while 18 more homes cross the finish line leaving this regions MSI at 1.6.
Southwest Santa Rosa experienced robust activity this past month as consumers placed 12 more dwellings into contract during the period just as sellers handed over the keys to 19 newly minted homeowners. With 24 abodes available for buyers to view in April, buyer demands further tightened MSI to 1.3 – holding sellers in a controlling position.
The sunny weather continues to awaken market participants. As we roll through April, buyers are out more in force as we encounter multi-party interest in homes priced under $1 million with the occasional multiple offers over as well. The only thing holding this market back from explosive activity are interest rates and political unrest both here and abroad – isn’t that always the case?
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