Like the old Batman series that denoted the striking action in every fight sequence between the dark knight and his nemesis…our nation’s leaders and overseers are all pulling out the bag of tricks to stabilize and stimulate the economy so that as we turn the corner on the virus we will be best positioned for success and a return the strong marketplace that stood just a month prior.
With the current shelter in place requirements we are likely to see statistical aberrations reported over the next few months which will likely move our typical patterns. According to BAREIS MLS, March’s data points indicate that Sonoma County buyers successfully contracted to purchase 275 single-family homes with property owners providing 277 new listings to the market during the period – both off significantly from the prior year as expected. The County saw 273 sales reach fruition by months end leaving 669 available properties to carry over into April – establishing a rather high absorption rate of 41 percent.
The absorption rate is calculated by dividing the total number of homes sold in a month by the total number of homes available for sale at the end of the same month. A high absorption rate – 20 percent and above – indicates that the supply of available homes will shrink rapidly, thereby increasing the odds that an owner will sell a property in a shorter period. Conversely, an absorption rate below 15 percent is indicative of a buyer’s market, meaning homes are selling more slowly.
Marin County’s marketplace is confirming a similar path. March showcased 109 fresh single-family offerings – an alarming 61 percent fewer than last year – with buyers quickly latching onto 94 newly consummated deals. Sellers closed out 106 transactions during the period leaving the entire county with 173 homes as offerings for buyers to select from this month - registering an absorption rate of 61 percent. The absence of full access certainly has limited the activity as we expect a continuation of hollow data for a few more months.
Napa County’s markets exhibited the less of everything model reported above as well with sellers releasing only 102 new homes to the market in March. Buyers jumped in to secure 75 ratified contracts while sellers completed 66 sales during the period leaving this region with 264 homes available to the marketplace as we roll into April. This stint of activity showcased a 25 percent absorption rate which is indicative of a liquid market.
Hunker down and stay healthy, though don’t sleep on opportunity which is what awaits you on the other side!
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