As forecasted last month, we have seen a significant swing upwards in activity as SIP has started to lift in various localities and business operations - though the month of May statistically will still look very downtrodden. This last month of woes should not be focused on much due to the nature of the artificial shutdown that took place. More will be made of this when June and July data come about as the wave of interest and action has been blistering a path forward with robust actions being taken by consumers.
According to data collected by BAREIS MLS, a current overview of Sonoma County indicates an average sold price per-square-foot (psf) of $421 for a single-family home. That coupled with a median property value hovering around $660,000 is an incredibly strong showing for a market that has been effectively closed.
As our region gets back to work, we are seeing buyers arrive in greater numbers with heightened demands. These demands are starting to bring about more multiple-offer scenarios than in the prior months and are affirming a follow through on our theory of deurbanization.
Cloverdale delivered a strong 39 percent jump as sold values rose to $409psf while Southwest Santa Rosa received a 33 percent boost to $453psf. The summer haven known as the Russian River region squeezed out three percent gains from the prior year landing at $395psf followed closely by Cotati and Rohnert Park managing a two percent improvement to $360psf – all of these positive movements seem nearly impossible when you think about what our markets have gone through, expect more robust numbers across our county next month.
Reporting no change year-over-year, Petaluma East, Northeast Santa Rosa and Windsor showcased flat values of $431psf, $421psf and $380psf, respectively. Though with the pace of pending deals in contract these sub-markets should see tidy gains in the coming months.
More in line with expectations due to the closed nature of our world, most markets should have been giving something back in the last few reporting periods. Such is the case with Southeast Santa Rosa where values slipped two percent on closed sales to $393psf while Northwest Santa Rosa fell nine percent to $360psf. Kicking back 11 percent left Oakmont at $368psf while Sebastopol lost 12 percent to wrap up May at $464psf. A notch lower was our Coastal region reporting values down 13 percent to $468psf – though with incredible new pending volume that will surely push this market the other way shortly.
Deeper in the house of pain, Petaluma’s Westside endured a 19 percent shrinkage in closed values to $411psf – interestingly so, less than the Eastside of town for the first time that I can remember. Healdsburg handed back 20 percent to land this month at $541psf followed by the tony town of Sonoma where market buyers reeled in sellers during the period at $455psf – a 29 percent drop from last May.
Our community has born an unbearable pain though now looks to be the beneficiary of net migration from urban centers like San Francisco - not to mention our population that is still making their recovery moves from devastation of years past. This combination of buying demands, low interest rates and being a real destination that people aspire to has us pointing towards better times ahead.