A catchy phrase Capitol One has been preaching for years, with interest rates hovering at all-time low’s hopefully you are able to reduce what goes out while increasing what stays in your account each month. In cases where you have a mortgage, the benefit of these low rates helps you control your biggest debt expenditure each month and this allows you more breathing room with where to spend or invest your hard-earned dollars – and trust me, I know they are hard earned dollars!
According to BAREIS MLS, with November in the rearview mirror, we find the marketplace absorbing homes at higher than typical seasonal levels with only 285 single-family homes remaining for sale in the city and its environs – six percent less than this same time a year ago – coupled with exacerbated buyer activity as 161 single-family homes were absorbed into pending contracts during the past month – 22 percent ahead of last year.
The entire municipality introduced 125 new listings to the market over the last month – seven percent fewer than a year ago - while the most recent period also found Sellers handing over keys on 161 completed sales even with the interruptions of wildfires in our marketplace. This compression of metrics is affirmed by Santa Rosa recording its’ Months’ Supply of Inventory (MSI) hovering at 1.8 – attributed in good part due to the fundamental shift in population migration from the greater Bay Area along with the cost of money in our current economy.
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 55 single-family homes in November – a welcomed 25 percent increase from this same period a year ago, though a significant number of these were homes being offered for sale that are in the waning months of construction completion making them hard to transact on during the month. The supply of homes was met with steady demand in November as there were only 148 dwellings for home seekers to consider by months end. Buyers embarked on 59 newly initiated escrows – 31 percent more than last year - while sellers received closing checks on another 45 properties delivering an MSI reading 3.1.
Southeast Santa Rosa saw the supply of available properties rise to 43 by months end – slightly more than the prior month though 12 percent less than a year earlier. This submarket debuted just 18 new homes in November while buyers garnered accepted offers on 27 additional dwellings. This coveted corner of the city experienced 34 formal transfers – maintaining pressure on an already tight market with MSI leveling off at 1.3.
Oakmont was one of the primary victims of a wildfire season that truncated both selling and buying activities this past month. The 55+ retirement community witnessed just 12 sellers debuting new offerings in the period while buyers still found their way to acceptances on an additional 12 new purchases. Sellers concluded 16 transactions in November establishing a solid rhythm of activity that indicates an MSI of 2.7 – still shocking that these metrics are not sideways due to the Glass Fire and its clean-up activities.
Remaining red hot like Rudolph’s nose, Northwest Santa Rosa saw buyers swoop in to gain control of 52 more deals this month – 58 percent greater than in 2019 - leaving 33 available single-family homes to carry over into December – 40 percent less than last year. Sellers committed 30 new offerings to the markets while another 46 homes completed the closing process. This intense activity has dropped the MSI even further to 0.7 – indicative of a market that should encounter price increases.
With 44 percent fewer listings than a year earlier, Southwest Santa Rosa found that it had just 18 homes available by month’s end after buyers completed 18 more deals during the period. Sellers pitched in to bring 10 new listings to the table in November while buyers pledged their paychecks towards 11 accepted contracts during the month – causing this submarkets MSI to steady at 1.0.
Here’s hoping your wallets feel balanced and your hearts feel warmth. Stay safe, brave and hopeful 2021 is on its way.
