Tis the Season to Prepare

‘Tis The Season to Prepare
Most property owners, when coached well, can gain an understanding of the market demands and how their needs can best dovetail together with buyers for the most successful outcome – those that don’t
will continue to make mistakes with regards to timing, improvements and strategy.

According to BAREIS MLS, Sonoma County had exactly 684 single-family homes left for sale at the close of October – seven percent greater than this same period twelve months earlier and this is expected to contract further before it expands once again in February. Sellers delivered 232 new listings to the market during the period – 24 percent less than in 2022 - while buyers garnered control of another 286
new deals – one percent less than a year earlier. In support of these metrics, completed sales tipped the scales at 309 for the period – very near the 312 homes sold in the same period last year.
The continued pace of the markets can be measured by the months’ supply of inventory (MSI) and, with the Federal Reserve aggressively trying to dampen demand by raising the cost of money, MSI has
continued to stabilize and in October the level stood at 2.2 – still indicative of a seller’s market as the holiday season arrives.

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.

Getting down to the details in the town of Sonoma, which submarket includes the hamlets of Kenwood and Glen Ellen, there were 109 homes reported for sale as October concluded – 24 percent higher than last year. This region experienced the addition of 22 new listings during the month while buyers garnered accepted contracts on 29 more properties. Sellers in the valley awarded keys to 35 new
homeowners – more than twice the level from a year earlier – allowing MSI to contract to 3.1.

Healdsburg witnessed just seven new listings arrive to the market last month – 50 percent less than a year ago. Buyers absorbed 16 homes in new deals while sellers closed out another 15 transactions
leaving this submarket with 69 homes for presentation to buyers in November – which is 38 percent higher than where it was twelve months prior while revealing an MSI swinging back and forth over the
course of the year culminating into a reading of 4.6 for the period.

Petaluma’s Westside attracted 18 new sellers in October leaving available inventory at 40 homes for buyers to select from by months end. Home seekers grabbed 17 new deals in the period while sellers
closed out 21 purchases sending MSI to a dramatically tighter reading of 1.9.

Sebastopol wrapped up the period with 52 available homes for buyers to consider – another new high for the running twelve-month period – as this included 18 additional offerings brought forth during
October. Home shoppers placed 17 more dwellings into contract while sellers completed 20 sales, causing MSI to stabilize at 2.6 for the month.

Windsor property owners delivered just nine new listings in October while buyers captured 19 deals during the period. Sellers closed out 20 more transactions leaving 22 single-family homes available for
buyers to chase in November while establishing an MSI of 1.1 for the period.

As the year comes to a close, we expect to find the seasonal hibernation mode come into play once again. Buyers are distracted by the activities on their horizon while their demands have been sidelined
by the historical rise in interest rates over the last 18 months. Coming out of the winter slumber buyers will be cautiously watching the markets for relief in this financing vehicle and whether that will be enough to greenlight jumping into the marketplace.