Ready for the Spring Market

Ready for the Spring Market

Mother nature has been holding us over for another elongated winter though the signs of Spring are piercing through now. We are experiencing sellers returning to the market – just in lighter volume than even last year – while buyers are enthralled by the sunshine on their faces and in hot pursuit of the elusive new home once again.

Within the metropolis of Santa Rosa, according to BAREIS MLS, with Spring on the horizon, February’s data points to a marketplace continuing with a steady seasonal demand level with 149 single-family homes remaining for sale in the city and its environs – just two percent greater than this same time last year. Buyers laid claim to 101 single-family homes during the past month – on par with the prior February - while the entire municipality introduced merely 68 new listings to the market during this period – a substantial 42 percent fewer than in 2023. The most recent period found Seller’s handing over keys on another 78 completed sales – nine percent behind the 86 dwellings that traded hands twelve months ago. 

Santa Rosa recorded a Months’ Supply of Inventory (MSI) level of 1.9 – continuing to affirm that sellers have greater influential impact on the marketplace than buyers. 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 five boroughs of the city, Northeast Santa Rosa – the North Bay’s most active submarket - saw the introduction of 29 single-family homes in February – 28 percent less than this same period a year ago as well as unusually less than just the month before. The supply of homes was met with strong demand as there were only 79 dwellings for house hunters to consider by months end – 20 percent more than during the same period last year. Buyers managed to absorb 42 homes into new contracts – 40 percent ahead of last year - with sellers receiving closing checks on another 32 properties – 25 percent greater than in 2023 - resulting in MSI tightening further to a reading of 1.9. Keep in mind that in this sector some of the new listings posted are offerings for homes under construction, which adds some unrealistic bulk to what is really available to purchase now, unlike most other sub-markets throughout the County.

Southeast Santa Rosa saw the supply of listed properties rest at 20 when March opened – 35 percent less than just a year earlier as well as a new monthly low. This submarket debuted merely seven new listings in February – 70 percent behind last year’s figures - while buyers garnered accepted offers on 19 additional dwellings – a six percent nudge better than a year earlier. This coveted corner of the city experienced 17 formal transfers in the period culminating in an MSI falling precipitously to 1.2.

Oakmont has been depleted of available inventory until just this month when sellers delivered 12 new offerings to the marketplace. Buyers jumped in and grabbed 13 new deals while sellers closed out seven sales leaving this region with 17 available homes for buyers to pursue in March, allowing MSI to rise temporarily to 2.4.

Less is just less this month in Northwest Santa Rosa where buyers made advances to gain control of 15 more deals while leaving just 20 single-family homes available for sale at the beginning of March. Sellers committed another 12 offerings to the market in the period while 17 more homes completed the closing process leaving this regions MSI at 1.2.

Eight new offerings were brought to market in Southwest Santa Rosa this February – a new historic low for the month. Consumers placed 12 more dwellings into contract during the period just as sellers handed over the keys to five newly minted homeowners. With 13 abodes available for buyers to view in March, the consumer activity has left MSI at 2.6 for the period – holding sellers in in a controlling position.

As we roll into March, we expect to see new offerings from property owners - the million-dollar question is - will it be enough to satiate buyer demands? And if it isn’t, then expect to see prices rise in these ensuing months.