The markets anticipation of a Federal Reserve interest rate cut came through this week. This is good news for our markets and the cost to control your housing budget as each reduction in rate is a reprieve in the cost of the amount of home you can control and effectively your long- term living expenses.
According to data collected by BAREIS MLS, a current overview of Sonoma County indicates an average sold price per-square-foot (psf) of $439 for a single-family home – off nine percent from June 2018, though higher than the 12 month low seen in January of $415psf. Buried within the statistics you will also see a market that is reestablishing higher prices as the median property value rose to $657,000 – and that’s without the new construction inventory sales that will start accumulating this year as several hundred high-net worth homes reemerge.
With very few markets in positive territory year over year on this metric, Southwest Santa Rosa topped the charts with gains of 12 percent from last June as values rose to $388psf. Followed by a summertime favorite – The Russian River area – which climbed nine percent to $435psf while Northwest Santa Rosa and Petaluma’s greater Eastside registered modest one percent improvements as values paid were $387psf and $410psf, respectively.
Giving back three percent, Oakmont and Southeast Santa Rosa landed at $439psf and $392psf, respectively, while America’s favorite small town - Healdsburg – slipped four percent to $647psf, though still the priciest square footage within Sonoma County. Northeast Santa Rosa faltered six percent to land at $422psf and keep in mind this market should see steady climbs upwards over the next few years with newly built “for sale” homes coming to market. Shedding eight percent, the swanky town of Sonoma along with the West County haven of Sebastopol found homes trading at $605psf and $506psf, respectively.
Further in the hole, Windsor gave up 10 percent to close June at $366psf while our Sonoma Coast took it on the chin homes sold reporting a 12 percent curtailment to wrap up the period at $461psf.
Right behind this were the coalesced markets of Cotati and Rohnert Park retrenching 13 percent, making them more attractive to suitors at $334psf. Cloverdale homeowners plunged 20 percent from a year earlier with homes trading at $314psf while in the cellar this month was Petaluma’s Westside getting hammered 24 percent as current sales for the month crossed the finish line at $443psf.
With rates dramatically different than last year we anticipate some added demand from buyers in the marketplace to acquire new homes. Rents may have stabilized for now - they usually do for several years after a run up - this may be the best time to get into your more permanent home and control your future when it comes to managing your day to day living costs while taking ownership of your future.
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