Pleasanton, CA. April 26, 2012 A significant decline in the inventory of homes on the market and a growing recognition that home prices may have hit bottom and low interest rates won’t last forever stimulated a sharp year-over-year increase in sales of existing, single-family detached homes across Sonoma County in the first quarter of 2012, according to a report by the research division of Wine Country Group by Better Homes and Gardens Real Estate based on an analysis of MLS data.
Countywide, 1,138 existing, single-family detached homes changed hands during the first quarter of 2011, up 17 percent from 973 homes sold in the opening quarter of 2011. Sales figures would have been higher if not for a limited inventory of properties to attract investors, first-time homebuyers seeking a primary residence and Bay Area homeowners looking for a weekend getaway. Compared with the first quarter of 2011, there were 30-50 percent fewer homes available for purchase – many of them short sales – but far fewer bargain-priced bank REOs.
The number of homes rose on both a quarterly and annualized basis in Cloverdale, Forestville, Penngrove and Petaluma, were up year over year in Guerneville, Santa Rosa and Sonoma, and maintained a steady pace in Healdsburg, Rohnert Park and Sebastopol.
Properties in good condition attracted multiple offers as investors with cash and no contingencies competed against first-time homebuyers with less-attractive conventional mortgages. This strong buyer interest helped stabilize the countywide median home price at $328,027 for the quarter, up slightly from $325,893 in the fourth quarter of 2011 but down 2 percent from $337,098 in last year’s first quarter. Several communities experienced substantive increases in their median sales price on both a quarterly and annualized basis as properties at all price ranges moved quickly. They included Bodega Bay (+30% for the quarter and +37% for the year), Cotati (+.1% and +15%, respectively), Forestville (+35% and +30%), Guerneville (+8% and +25%), Monte Rio (+4% and +116%); Sonoma (+14% and +9%) and The Sea Ranch (+44% and +45%).
Looking ahead to the peak homebuying season, a limited supply of homes on the market points to the potential for a modest increase in home prices. That and strong buyer interest may be what it takes to convince homeowners with equity who have been waiting on the sidelines to put their homes on the market. According to Timothy Hedges, Manager of the Sebastopol office of the Better Homes and Gardens Wine Country Group, “First-time homebuyers will want to have their financial house in order and be patient as they compete against cash offers from investors.” Because the most attractive properties will move quickly, buyers are well-advised to work with a REALTOR® who has local-market expertise.
First Quarter 2012 Housing Market Survey – Sonoma CountySonoma County
Homes
Sold
Q1/12
Homes
Sold
Q1/11
%
Change
Avg.
DOM*
Q1/12
Avg.
DOM
Q1/11
Change
12/11
(Days)
Median
Price
Q1/12
Median
Price
Q1/11
%
Change
Single-Family Detached
Homes
1,138
973
17
106
84
22
$328,027
$337,098
-3
First Quarter 2012 Housing Market Survey – Cities in Sonoma County
Single-Family Detached Homes
CityHomes
Sold
Q1/12
Homes
Sold
Q1/11
%
Change
Avg.
DOM*
Q1/12
Avg.
DOM
Q1/11
Change
12/11
(Days)
Median
Price
Q1/12
Median
Price
Q1/11
%
Change
Bodega
0
1
-100
-
19
-
-
$679,000
-
Bodega Bay
15
16
-6
139
151
-12
$700,000
$512,000
37
Cazadero
5
5
0
263
35
228
$230,000
$259,900
-12
Cloverdale
41
36
14
73
115
-42
$229,900
$274,763
-16
Cotati
17
19
-11
78
81
-3
$315,000
$274,900
15
Forestville
19
11
73
88
123
-35
$273,000
$210,000
30
Geyserville
1
0
100
176
-
-
$450,000
-
-
Glen Ellen
5
3
67
109
65
44
$260,000
$860,000
-70
Graton
1
1
0
26
95
-69
$395,000
$325,000
22
Guerneville
26
15
73
100
99
1
$200,250
$159,900
25
Healdsburg
40
42
-5
153
89
64
$386,000
$475,500
-19
Jenner
0
1
-100
-
15
-
-
$320,000
-
Kenwood
5
2
150
77
50
27
$510,000
$522,450
-2
Monte Rio
8
6
33
25
54
-29
$275,000
$127,500
116
Occidental
2
3
-33
52
106
-54
$411,500
$565,000
-27
Penngrove
10
2
400
108
92
16
$564,500
$737,500
-23
Petaluma
169
114
48
90
94
-4
$340,000
$386,250
-12
Rohnert Park
68
69
-1
68
53
15
$286,000
$284,500
1
Santa Rosa
485
417
16
76
71
5
$295,000
$300,000
-2
Sebastopol
42
42
0
82
90
-8
$394,759
$461,050
-14
Sonoma
88
80
10
93
74
19
$440,000
$402,500
9
The Sea Ranch
12
13
-8
139
199
-60
$625,000
$430,000
45
Windsor
79
75
5
69
80
-11
$320,000
$327,400
-2
Dillon Beach (Marin Co)
9
7
29
139
88
51
$517,000
$468,000
10
* Days on market is the number of days a property was listed on the market until it went under
contract at its final listing price. This may not reflect previous listings.
**The median home price for the entire county is the mean of median home prices of
cities within Sonoma County.
Other notes:
The Dillon Beach community in Marin County is served by the Bodega Bay office of Wine Country Group by Better Homes and Gardens Real Estate. It is included for informational purposes and is not factored into the Sonoma County totals. Annapolis, Fulton and Valley Ford recorded no home sales in either Q1 2012 or Q1 2011 and are not included in the chart, although their results are included in the aggregate sales and median price data.
Data are sourced from multiple listing services and are deemed reliable but not guaranteed.
All percentages rounded to nearest whole number.
About Wine Country Group by Better Homes and Gardens Real Estate
Our heritage began with the founding of Mason-McDuffie Real Estate in 1887. In 2010, the company was named the 17th largest real estate services firm in the nation (RIS Media), and Number One in the San Francisco East Bay (SF Business Times). The company provides comprehensive solutions to home buyers and sellers, and handled 7,790 transactions in 2011, generating $2.94 billion in sales. Better Homes and Gardens Mason-McDuffie Real Estate is independently owned and operated and includes joint ventures with partners Highland Partners in Piedmont and Montclair, Wine Country Group Realtors in the North Bay, and Tri-Valley Realty in Pleasanton-Hopyard and Ruby Hill. The organization is comprised of more than 1,400 sales professionals in 26 offices. For more information, go to www.bhghome.com.