Real Estate Values Recover from Last Year’s Discount
The greater Santa Rosa metro region has seen buyers clamoring for more and this demand has helped values recover the nine percent that was conceded during last year’s precipitous slide.
Within the metropolis of Santa Rosa, according to BAREIS MLS with Spring in full bloom, the data from April points to a marketplace firmly indicating more demand with only 153 single-family homes remaining for sale in the city and its environs – 41 percent less than this same time a year ago. Buyers laid claim to 129 single-family homes during the past month – a rate 25 percent less than a year earlier - while the entire municipality introduced 134 new listings to the market in April – 29 percent fewer than in 2022. The most recent period found Seller’s handing over keys on another 104 completed sales – 46 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 third data point that echoes the uptick in buyers demands being experienced on main street since the opening of the new year; and, with May now looking to establish a fourth consecutive month, closed sales in the metropolis are experiencing a resurgence in the median value of sold homes as it crest $810,000 this month officially pushing past the prior all-time high established 11 months earlier.
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 57 single-family homes in April – 10 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 79 dwellings for home seekers to consider by months end – 25 percent lower than the depths we were experiencing at this time last year. Buyers still managed to absorb 35 homes into new contracts with sellers receiving closing checks on another 35 properties – resulting in MSI rising modestly to 2.3 – keep in mind that in this sector some of the new listings posted are offerings for homes to be built so that adds some unrealistic bulk to what is really available to purchase now.
Even more fervently in demand, Southeast Santa Rosa saw the supply of listed properties rest at 26 by month’s end – 47 percent less than just a year earlier. This submarket debuted 25 new listings in April while buyers garnered accepted offers on another 28 additional dwellings. This coveted corner of the city experienced 19 formal transfers in the period culminating in an MSI of 1.4. The quantity of available listings in Oakmont has dwindled to just nine at the end of April, which is inclusive of property owners launching 13 new offerings during the period. Buyers inked out 21 new
deals while sellers completed 17 transactions during the period, allowing MSI to plummet further to 0.5– the tightest reading in the Northbay marketplace.
Northwest Santa Rosa buyers made advances to gain control of 38 more deals while leaving just 28 single-family homes available for sale at the end of April. Sellers committed 29 additional offerings to the market while another 25 homes completed the closing process leaving this region with a tightened MSI steadying at 1.1.
Southwest Santa Rosa sellers delivered 10 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 eight closings, leaving merely 11 dwellings available for buyers to view in May while allowing MSI to rise incrementally to 1.4. Real estate markets experience modest moves over time that result in the formation of trends. This new trend seems to be in place where multiple buyers are in pursuit of a dwindling supply of homes available for sale thereby responsible for the value recovery being experienced throughout our region. So don’t go to sleep on this market, get your keen advice now to help you through to a better tomorrow.
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