Markets Firm While Summer Pause Sets In

Markets Firm While Summer Pause Sets In
For the sixth month in a row, the greater Santa Rosa metro region has continued to improve and recapture values ceded during the last half of 2022.

Within the metropolis of Santa Rosa, according to BAREIS MLS as we settle into the summer pause, the data from June points to a marketplace firmly indicating a voracious demand with only 212 single-family homes remaining for sale in the city and its environs – 27 percent less than this same time a year ago along with being another all-time low for this month. Buyers laid claim to 125 single-family homes during the past month – a rate 23 percent less than a year earlier - while the entire municipality introduced 112 new listings to the market in June – 44 percent fewer than in 2022. The most recent period found Seller’s handing over keys on another 139 completed sales – 25 percent behind last year.

This measurable market shift is affirmed by Santa Rosa recording a Months’ Supply of Inventory (MSI) level at 1.5 – further corroboration that buyers have ceded their control once again to sellers in the
marketplace while establishing the sixth data point echoing this uptick in buyer demands being experienced on main street since the opening of the new year; and, with July now looking to establish a
seventh consecutive month.

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 city, Northeast Santa Rosa – the North Bay’s most active submarket - saw the introduction of 45 single-family homes in June – 24 percent fewer than this same period a year ago. The supply of
homes was met with more active demand during the period as there were 113 dwellings for home seekers to consider by months end – one percent lower than the depths we were experiencing at this
time last year. Buyers still managed to absorb 44 homes into new contracts with sellers receiving closing checks on another 51 properties – resulting in MSI steadying at 2.2 – keep in mind that in this sector
some of the new listings posted are offerings for homes to be built yet so that adds some unrealistic bulk to what is really available to purchase now, unlike most other sub-markets in the region.
Still fervently in demand, Southeast Santa Rosa saw the supply of listed properties rest at 36 by month’s end – 35 percent less than just a year earlier. This submarket debuted 14 new listings in June – 64
percent fewer than last year - while buyers garnered accepted offers on another 27 additional dwellings. This coveted corner of the city experienced 23 formal transfers in the period culminating in an MSI of
1.6.

It's been a wild ride in Oakmont with voracious buyer demands coming from outside our marketplace. As we sunset the books on June, there were just 13 available homes for buyers to peruse, which is
inclusive of property owners launching 13 new offerings during the period. Buyers inked out 18 new deals while sellers completed 17 transactions during the period, allowing MSI to rest at 0.8 – one of the
tightest readings throughout the Northbay marketplace.

Northwest Santa Rosa buyers made advances to gain control of 29 more deals while leaving just 33 single-family homes available for sale at the end of June. Sellers committed 25 additional offerings to
the market while another 33 homes completed the closing process leaving this region with an MSI at 1.0.

Southwest Santa Rosa sellers delivered 15 new offerings to the market while consumers placed seven more dwellings into contract during the period. Newly minted homeowners captured keys to new doors
on the heels of 15 closings, leaving 17 dwellings available for buyers to view in July while causing MSI to hover around 1.1.

As we now find ourselves within the midst of the “Summer pause” we see the typical pattern of activity take place within the market with buyers distracted with their summering and only paying modest
attention towards their real estate purchasing activity. If you are a buyer, this creates a window of opportunity as sellers ponder why their homes have not transacted yet – just don’t get complacent as
like any other opportunity this window will close, and we expect that to be in early September.