Tis the Season to Enjoy

Tis the Season to Enjoy

As the holiday zone captures the overwhelming interest during this period, we see a noticeable dip in both sellers introducing new properties and buyers pursuing the purchase of new homes in the
marketplace.
Within the metropolis of Santa Rosa, according to BAREIS MLS, with November now in the books, the data points to a marketplace continuing with a steady yet seasonal demand level with 232 single-family
homes remaining for sale in the city and its environs – 14 percent greater than this same time a year ago. Buyers laid claim to 94 single-family homes during the past month – 17 percent less than last year -
while the entire municipality introduced 83 new listings to the market in November – 15 percent fewer than in 2022. The most recent period found Seller’s handing over keys on another 86 completed sales –
24 percent behind the 113 dwellings that traded hands a year ago.

This measurable market shift remains affirmed by Santa Rosa recording a Months’ Supply of Inventory (MSI) level at 2.7 – a continued confirmation that buyers are still at the mercy of sellers in most cases –
in the marketplace. 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 36 single-family homes in November – just five percent less than this same period a year ago. The supply of homes was met with lacking demand during the period as there were 110 dwellings for home seekers to consider by months end – 45 percent more than during the same period last year. Buyers managed to absorb 35 homes into new contracts with sellers receiving closing checks on another 26 properties – resulting in MSI finding its way for the first time, in over three years, to a balanced reading of 4.2 – keep in mind that in this sector some of the new listings posted are offerings for homes to be built yet so that 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 40 by month’s end – five percent more than just a year earlier. This submarket debuted 13 new listings in November – seven percent fewer
than in 2022 - while buyers garnered accepted offers on another 16 additional dwellings. This coveted corner of the city experienced 18 formal transfers in the period culminating in an MSI of 2.2 – denoting
sellers remaining in control in this submarket.

Oakmont continues to record voracious buyer demands - most coming from outside our local marketplace - from those looking to acquire their new wine country retirement home. With November
in the rearview mirror, there were just 15 available homes for buyers to peruse, which is inclusive of property owners launching five additional offerings during the period. Buyers inked out six new deals
while sellers completed 12 transactions during the month, allowing MSI to remain contracted at 1.3. Northwest Santa Rosa buyers made advances to gain control of 28 more deals while leaving 39 single-
family homes available for sale at the beginning of December. Sellers committed 21 additional offerings

to the market while 24 more homes completed the closing process leaving this regions MSI indicating a strong seller bias at 1.6.
Southwest Santa Rosa sellers delivered eight new offerings to the market while consumers placed just nine more dwellings into contract during the period. The latest homeowners received keys to their new
doors on the heels of six closings, leaving 28 dwellings available for buyers to view in December thereby allowing MSI to matriculate upwards to 4.7, more indicative of a balanced marketplace.
We expect this seasonality to hold through the end of January. That said, if interest rates make significant moves to the downside, then you may find this market catching its wings even earlier. If you
are wondering how the market impacts your personal situation, just reach out and we can offer specific insights for you.