One More Month of Reestablishing a New Trend
The data coming out is corroborating the palpable sentiment change within our marketplace when it comes to the renewed demands of buyers.
Within the metropolis of Santa Rosa, according to BAREIS MLS as the sun sets on February, the data points to a marketplace still in the process of establishing its new cadence with only 144 single-family homes remaining for sale in the city and its environs – 42 percent less than this same time a year ago and just one more unit than the all-time low we experienced the prior month. Buyers laid claim to 98 single-family homes during the past month – a rate 32 percent less than a year earlier - while the entire municipality introduced just 81 new listings to the market in February – 59 percent fewer than in 2022. The most recent period found Seller’s handing over keys on another 83 completed sales – 33 percent behind last year.
This measurable market shift is affirmed by Santa Rosa recording a Months’ Supply of Inventory (MSI) level at 1.7 – dramatically tighter than the month before while establishing the first data point that corroborates the uptick in buyers demands being experienced on main street since the opening of the new year.
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 29 single-family homes in February – 57 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 merely 66 dwellings for home seekers to consider by months end – 37 percent lower than the depths we were experiencing at this time last year. Buyers still managed to absorb 29 homes into new contracts with sellers receiving closing checks on 23 properties – resulting in MSI sinking to 2.9 and with expectations of this tightening further as we close out the period.
Southeast Santa Rosa saw the supply of listed properties rest at 30 by month’s end – 38 percent less than just a year earlier. This submarket debuted just 14 new listings in February while buyers garnered accepted offers on another 16 additional dwellings. This coveted corner of the city experienced 12 formal transfers in the period culminating in a MSI of 2.5.
The quantity of available listings in Oakmont fell for the third time in as many months to 10 as February wrapped up with property owners launching nine new offerings during the period. Buyers inked out 17 new deals while sellers completed 18 transactions during the period, allowing MSI to plummet to the tightest reading within Sonoma County at 0.6.
Northwest Santa Rosa buyers made advances to gain control of 23 more deals while leaving just 22 single-family homes available for sale at the end of February – another new all-time low. Sellers committed 19 additional offerings to the market while another 24 homes completed the closing process leaving this region with a much tighter MSI reading of 0.9 – less than a one-month supply of available homes for sale at this corresponding absorption rate.
Southwest Santa Rosa sellers delivered 10 new offerings to the market while consumers placed 13 more dwellings into contract during the period. Newly minted homeowners captured keys to new doors on the heels of six closings, leaving 16 abodes available for buyers to view in March – matching the historical lows realized in the prior two months - allowing MSI to climb to 2.7.
As financial markets wax and wane, we are seeing enhanced demand for homes from buyers and without a corresponding rise of inventory this could lead to a our regional marketplace recapturing more of the value ceded during the last seven months of last year.
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