They come in so many finishes, shapes, and sizes and of course they are manufactured at levels that mean they are not all that unique though when it is the entry handle to your new home it feels so special.
According to BAREIS MLS, February’s data points indicate that Sonoma County buyers successfully contracted to purchase 411 single-family homes – 34 percent greater than just a year earlier and held back from being much greater by the lack of inventory available. Property owners delivered 347 new listings to the market during the period – 24 percent less than last February - while the County saw a trend affirming 307 sales reach fruition by months end – 13 percent greater than a year ago.
The compression within our markets is easily understood by realizing that the spike in buyer demands coupled with reluctant sellers over time creates a chasm that inevitably forces prices higher to tempt sellers to market. This immense activity is causing available inventory to zoom off the shelves while less is being restocked, leaving just 485 single-family homes to carry over into March – a stunning 28 percent fewer available listings than in 2020. The voracious demand for homes has driven the median price to a new high of $740,000 while also establishing one of the Bay Area’s highest absorption rates of 63 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.
Smaller and even hotter, Marin County’s marketplace showcased just 137 new single-family offerings – 31 percent fewer than a year earlier - with buyers promptly absorbing another 191 homes into consummated contracts – 57 percent greater than in 2020 – further echoing the chasm referenced above. Sellers closed out 139 transactions during the period - compared with 92 last year at this same time - leaving the entire region with only 143 homes available for buyers to peruse in March. Marin’s extreme pace indicates an absorption rate of 97 percent – providing further evidence of the continued pressure being created by the deurbanization movement away from the core Bay Area metropolises.
Not as hot though still boasting an incredible rise in sales and values, Napa County’s markets are benefitting from similar trends as sellers managed to deliver only 105 new homes to market this last month – 34 percent fewer than in 2020. Buyers rushed in to grab 97 new deals – 26 percent greater than last year - while sellers closed out a remarkable 76 sales in the period. This left the region with just 191 available dwellings heading into March showcasing a 40 percent absorption rate and further denoting a supply shortened market ahead.
The gratifying squeeze you get the first time you grab the front door handle on your new home is like no other. A sense of accomplishment, security and hope fill the soul as you realize you have just arrived at where so many significant things will take place in your life and for those around you. Welcome home!