Market Marches Onward
With a dwindling supply of sellers looking to join the marketplace while the quantity of buyers surges in the region. According to BAREIS MLS, Sonoma County had exactly 447 single-family homes left for sale at the close of April – 45 percent fewer than this same period twelve months ago. Sellers delivered 304 new listings to the market during the period – also 45 percent less than in 2022 - while buyers garnered control of another 319 new deals – 28 percent off from a year earlier due to higher interest rates, lower inventory levels and the seasonality of our marketplace. In support of these metrics, completed sales tipped the scales at 265 for the period – 44 percent fewer than the prior year.
The continued pace of the markets can be measured by the months’ supply of inventory (MSI) and, with the Federal Reserve aggressively trying to dampen demand by raising the cost of money, MSI has stabilized in April at 1.7 – indicative of a stronger seller’s market and one picking up steam in that direction over the course of the four previous reporting periods. 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.
Getting down to the details in the town of Sonoma, which submarket includes the hamlets of Kenwood and Glen Ellen, there were 69 homes reported for sale as April concluded – 42 percent less than this same period a year ago. This region experienced the addition of 25 new listings during the month while buyers garnered accepted contracts on 33 more properties. Sellers in the valley awarded keys to 26 new homeowners – 46 percent off from a year earlier – allowing MSI to shift further towards a more seller friendly reading of 2.7 for April.
Healdsburg witnessed 24 new listings arrive to the market last month – 31 percent fewer than a year earlier. Buyers absorbed 13 homes in new deals while sellers closed out 15 transactions leaving this submarket with 49 homes for presentation to buyers in May – 38 percent less than last year’s historic lows revealing an MSI swinging back and forth while resting at 3.3 for the period. Petaluma’s Westside attracted 14 new sellers in April which helped available inventory to stabilize for now at 28 homes for buyers to select from at months end. Home seekers grabbed 20 new deals in the
period while sellers closed out 14 more purchases leading to an MSI registering at 2.0.
Sebastopol wrapped up the period with 22 available homes for buyers to consider inclusive of the 17 additional offerings brought forth in the period. Home shoppers placed 24 more dwellings into contract while sellers completed 22 sales allowing MSI to close April at 1.0 March at 1.9. Windsor property owners delivered 17 new listings in April while buyers captured 19 deals during the
period. Sellers closed out 18 more transactions leaving 23 single-family homes available for buyers to peruse in May while highlighting an MSI of 1.3.
As the year gets further away from being new, the demands of buyers looking to relocate to the region continue to blossom, while those here already continue to relish what they have with a lesser sense of looking to move or trade out of their homes. This has established a historically tight playing field where sellers are outnumbered by buyers while the overall markets are being held down by the Federal Reserve and the quest to end inflation or drive us back into the stone age. Remember, if you are waiting to make a move based upon interest rates adjusting favorably that so are many others which could dampen the ability to achieve that end if you sideline yourself in the meanwhile – those that take charge
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