Rate Adjustments, Banking Concerns Impact Regained Momentum
Our markets kicked into gear promptly with the start of the new year though have recently been hampered by further interest rate hikes and consumers working to assess, to a degree, how a regional banking debacle may weigh on their future plans.
According to the most recent data collected by BAREIS MLS, a current overview of Sonoma County shows an average sold price per-square-foot (psf) of $531 being paid for a single-family home – five percent less than last year at this time - indicating a slippage in property values already echoed by other metrics. The fall in value is iterated by the median price registering $790,000 at month’s end – nine percent below the peak we experienced last May.
Within the 15 different sub-markets of Sonoma County, Healdsburg surpassed all market gainers with a 32 percent surge to $999psf out dueling its neighbor to the North, Cloverdale, which soared 24 percent – on extremely lite volume - to $471psf for the top spot as February closed out. Southwest Santa Rosa claimed a 13 percent advance registering average sold values for a single-family home at $447psf while the tourism mecca of Sonoma – inclusive of Kenwood and Glen Ellen - captured a 10 percent rise to $805psf.
Staying this side of positive, Oakmont rang the bell with a seven percent move to $449psf while Petaluma’s Eastside ascended four percent to $516psf.
As the shadow of regression has surfaced, Northeast Santa Rosa ceded five percent with final sold prices for February at $511psf trailed closely by Cotati and Rohnert Park where six percent was sliced off last year’s values to close at $429psf. Sebastopol buyers paid eight percent less with the average sale settling at $616psf while Northwest Santa Rosa relinquished nine percent to close out February at $441psf.
Retrenching further, Southeast Santa Rosa slipped 17 percent to $396psf as the Russian River region saw a 19 percent collapse to $468psf. Petaluma’s Westside surrendered 21 percent with closing values at $515psf by months end. The leader - in the wrong direction for the period - was our Coastal zone, which has seen rapid gains over the past few years to see only now those retreat 27% to $599psf.
We still have a significant inventory shortage which means with smaller volumes in play the metrics each month will typically exhibit exaggerated adjustments and may not necessarily reflect the broader underlying condition of each niche’ market. Thus, expect some inconsistency with this and realize now more than ever is a professionals market as they are more capable than most to understand what real values are at any given point in time.
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