Even with the herky-jerky fits and starts we have been dealing with between the pandemic and wildfires, the Santa Rosa marketplace remains a hot bed of activity.
The Santa Rosa metro region has been maneuvering to find its way to the other side of living with a virus and what that means to our habits and routines. According to BAREIS MLS, with August in the rearview mirror, we find the marketplace absorbing homes at a more rapid pace than ever recorded with only 278 single-family homes remaining for sale in the city and its environs – 25 percent less than this same time a year ago – coupled with a voracious level of activity as 252 single-family homes found their way into pending contracts during the past month – adding further trend line confirmation to our “V” shaped recovery scenario with this metric being 61 percent greater than last August.
The entire municipality introduced 153 new listings to the market during the period – 20 percent less than a year ago - while the most recent period also found Sellers handing over keys on 195 completed sales – 27 percent greater than last August. This compression of metrics is affirmed with Santa Rosa recording its’ Months’ Supply of Inventory (MSI) hovering at 1.4 – attributed in part due to the fundamental shift in population migration from the greater Bay Area.
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 generally indicative of a balanced market, with lower numbers increasingly favoring sellers and vice versa.
Getting down to the underlying specifics, Northeast Santa Rosa saw the introduction of just 56 single-family homes in August – a 14 percent decrease from this same period a year ago. The supply of homes was met with over the top absorption during the period as there were only 113 dwellings for home seekers to consider by months end – 28 percent fewer than in 2019. Buyers embarked on 112 newly initiated escrows – 81 percent greater than last August - while sellers received closing checks on another 83 properties – a volume ratio never experienced before in this submarket and delivering an MSI of 1.4 with indicators towards further tightening.
Southeast Santa Rosa saw the supply of available properties steady at 49 by months end – 22 percent less than a year earlier. This submarket debuted just 32 new homes in August while buyers garnered accepted deals on 43 more abodes – 65 percent greater than this period a year ago. This coveted corner of the city experienced 30 formal transfers – adding pressure to an already tight market with MSI settling at 1.6.
Oakmont is regaining its swagger after a slumbery few months. This 55+ retirement community witnessed just 10 sellers debuting new offerings in the period – not enough to keep the overall availability from compressing to 46 by months end. Buyers found their way to acceptances on 23 new purchases while sellers concluded a high watermark of 23 transactions during the period. The activity level indicates an MSI of 2.0 – and is now showing a trend towards joining the cadence of the other four boroughs of Santa Rosa.
Multiple offers are the name of the game in Northwest Santa Rosa as buyers swooped in to gain control of 63 more deals leaving just 45 available single-family homes to carry over into September. Sellers delivered 43 new offerings to help replenish the region, though another 43 homes completed the closing process. This intense swing in demand is showcasing an MSI of 1.0.
With 29 percent fewer listings than just a year earlier, Southwest Santa Rosa found that it had just 25 homes available by month’s end after buyers completed 16 deals during the period. Sellers pitched in to bring 12 new listings to the table in August while buyers pledged their paychecks towards 11 accepted contracts during the month as well – causing this submarkets MSI to close the period at 1.6.
As we form new habits, conquer new obstacles and forge our way forward into what may be our new-normal, we find more so than we can ever remember the value people are placing on their home environments. This movement is being greatly assisted by all-time low mortgage rates that have helped to increase the affordability factor for so many that now call their home their castle, school, office and social environment.