Strong Demand Boosts Home Sales, Median Prices

Posted by Jessic Boyd — November 8, 2012

1352406525Sonoma, CA – The Sonoma County existing-home market continued to show signs of a recovery in the third quarter as strong demand and a shortage of available properties helped fuel a modest increase in the median sales price of a home, 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.

First-time homebuyers and others requiring bank financing continued to compete with investors with cash who have the ability to submit multiple offers and bid up the asking price. The median price of an existing, single-family detached home sold in Sonoma County rose 4 percent from $360,356 in the second quarter to $373,881 in the third quarter. The most recent median price was 6 percent higher than a year ago, when it stood at $351,475.

As has been the case in recent quarters, the number of homes sold almost certainly would have been higher had there been more homes available for purchase. Countywide, 1,418 existing, single-family detached homes were sold in the third quarter, down 3 percent from 1,465 homes sold in the second quarter but up 12 percent from the 1,263 homes sold during last year’s third quarter. Inventory remained tight. As of Sept. 30, 2012, only 841 existing detached homes were listed for sale in Sonoma County, down 57 percent from 1,959 homes available on Sept. 30, 2011. At the local level, inventory was down 88 percent from a year ago in Petaluma, 72 percent in Rohnert Park, 69 percent in Santa Rosa, 52 percent in Sonoma, 49 percent in Sebastopol and 43 percent in Healdsburg.

Homebuyers – particularly investors with cash looking to purchase, rehab, and quickly re-sell properties – continued to focus on Santa Rosa (600 homes sold for the quarter), Petaluma (189 homes sold) and Sonoma (131 sold). All three cities also experienced healthy increases in their median sales price on both a quarterly and annualized basis. However, with inventory in short supply in these larger cities, some homebuyers turned to more rural communities. As a result, the number of sales transactions and median sales prices were up on both a quarterly and annualized basis in Cotati, Forestville, Guerneville and Penngrove.

According to Carol Lexa, Sonoma Manager, Wine Country Group, “With inventory expected to remain in short supply through the fall months, homeowners who have been waiting for home prices to improve may consider seeking the opinion of an experienced REALTOR® who can help evaluate current market opportunities.” Homebuyers, meanwhile, should be prepared to act quickly on any new listings and to work with a REALTOR® who has local-market knowledge to help negotiate a successful purchase offer.

Third Quarter 2012 Housing Market Survey – Sonoma County

Sonoma County

Homes Sold Q3/12

Homes Sold Q3/11

% Change

Avg. DOM* Q3/12

Avg. DOM Q3/11

Change 12/11 (Days)

Median Price Q3/12

Median Price Q3/11

% Change

Single-Family Detached Homes

1,418

 

 

1,263

 

 

12

 

 

106

 

 

84

 

 

22

 

 

$373,881

 

 

$351,475

 

 

6

 

 

Third Quarter 2012 Housing Market Survey – Cities in Sonoma County

Single-Family Detached Homes

City

Homes Sold Q3/12

Homes Sold Q3/11

% Change

Avg. DOM* Q3/12

Avg. DOM Q3/11

Change 12/11 (Days)

Median Price Q3/12

Median Price Q3/11

% Change

Annapolis

2

 

 

2

 

 

0

 

 

51

 

 

280

 

 

22

 

 

$120,000

 

 

$354,850

 

 

-66

 

 

Bodega Bay 8

16

 

 

-50

 

 

64

 

 

123

 

 

-59

 

 

$593,500

 

 

$542,000

 

 

9

 

 

Cazadero

8

 

 

5

 

 

60

 

 

43

 

 

119

 

 

-76

 

 

$255,000

 

 

$288,500

 

 

-12

 

 

Cloverdale 34

39

 

 

-13

 

 

46

 

 

71

 

 

-25

 

 

$304,000

 

 

$245,000

 

 

24

 

 

Cotati 21

12

 

 

75

 

 

46

 

 

25

 

 

21

 

 

$349,900

 

 

$342,500

 

 

2

 

 

Forestville 34

17

 

 

100

 

 

50

 

 

68

 

 

-18

 

 

$247,500

 

 

$155,000

 

 

60

 

 

Fulton

2

 

 

0

100

 

 

55

 

 

-

 

 

-

 

 

$208,100

 

 

-

 

 

-

 

 

Geyserville 4

4

 

 

0

 

 

17

 

 

52

 

 

-35

 

 

$352,250

 

 

$892,500

 

 

-61

 

 

Glen Ellen 13

10

 

 

30

72

 

 

44

 

 

28

 

 

$611,000

 

 

$774,500

 

 

-21

 

 

Graton 0

2

 

 

-100

 

 

-

 

 

61

 

 

-

 

 

-

 

 

$302,500

 

 

-

 

 

Guerneville 39

26

 

 

50

 

 

49

 

 

82

 

 

-33

 

 

$230,000

 

 

$216,500

 

 

6

 

 

Healdsburg 53

51

 

 

4

 

 

74

 

 

70

 

 

4

 

 

$500,000

 

 

$580,000

 

 

14

 

 

Jenner 1

1

 

 

0

 

 

284

 

 

149

 

 

135

 

 

$350,000

 

 

$545,000

 

 

-36

 

 

Kenwood 11

10

 

 

10

 

 

39

 

 

53

 

 

-14

 

 

$765,000

 

 

$416,500

 

 

84

 

 

Monte Rio 11

10

 

 

10

 

 

55

 

 

87

 

 

-32

 

 

$251,000

 

 

$257,750

 

 

-3

 

 

Occidental

6

 

 

7

 

 

-14

 

 

19

 

 

56

 

 

-37

 

 

$577,500

 

 

$685,000

 

 

-16

 

 

Penngrove 14

10

 

 

40

 

 

78

 

 

65

 

 

13

 

 

$620,000

 

 

$597,500

 

 

4

 

 

Petaluma

189

 

 

159

 

 

19

 

 

50

 

 

76

 

 

-26

 

 

$399,000

 

 

$380,000

 

 

5

 

 

Rohnert Park 64

78

 

 

-18

 

 

46

 

 

64

 

 

-18

 

 

$291,775

 

 

$285,100

 

 

2

 

 

Santa Rosa 600

527

 

 

14

 

 

46

 

 

64

 

 

-18

 

 

$336,000

 

 

$299,950

 

 

12

 

 

Sebastopol 60

66

 

 

-9

 

 

66

 

 

52

 

 

14

 

 

$540,240

 

 

$477,500

 

 

13

 

 

Sonoma 131

106

 

 

24

 

 

55

 

 

99

 

 

-44

 

 

$430,000

 

 

$406,000

 

 

6

 

 

The Sea Ranch 22

14

 

 

57

 

 

114

 

 

124

 

 

-10

 

 

$497,750

 

 

$500,000

 

 

-.5

 

 

Windsor 91

91

 

 

0

 

 

40

 

 

57

 

 

-17

 

 

$362,500

 

 

$330,000

 

 

10

 

 

Dillon Beach (Marin Co) 6

1

 

 

500

 

 

75

 

 

97

 

 

-22

 

 

$549,750

 

 

$440,000

 

 

25

 

 

* 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. Bodega and Valley Ford recorded no home sales in either Q3 2012 or Q3 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 1,200 sales professionals in 29 offices. For more information, go to www.bhghome.com

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