Well well well, if April Showers bring May flowers... I'm grateful they are lasting through June! As a longtime Sonoma County resident (going on 40 years!) I can't recall a season that has given us so much rain and beautiful flowers this year. Soon enough we'll feel the summer heat, but for now, we are cooler than usual. Thanks to a turbulent last few weeks in national news with the debt ceiling finally docked, our real estate market is finding it's footing and cooling off a bit too. Inman news, my favorite real estate industry news source, shares this article
Despite lending conditions, homes well priced and marketed properly continue to sell quickly. Multiple offers are decreasing unless it is an absolute unicorn of a property. Let's jump into the market update.
🏡 Sonoma County May Market Update 🍇
Welcome to the latest market update for Sonoma County, where I'll bring you the highlights you need to know! Despite some challenges in the broader economy, the local real estate market continues to show resilience and promise.
✨ Market Overview:
In Sonoma County, home sales experienced a slight dip of 2.4% month over month, following a significant surge the previous month. However, it's important to note that the market may witness more variability in the number of homes sold as buyers seek to take advantage of favorable interest rate fluctuations.
💼 Economic Outlook:
While the exact state of our economy remains uncertain, the term "economic limbo" seems fitting. The pandemic reshaped our world, creating a smaller menu of options and shifting our perspective on finances. Nevertheless, we are gradually adapting and finding stability. Recently released Q1 2023 data indicates a slight decline in GDP, likely influenced by the Federal Reserve's efforts to manage the economy.
🏦 Interest Rates and Banking:
The Federal Reserve, responding to the vulnerability of the banking sector, hinted at pausing rate hikes following a series of regional bank failures. This cautious approach reflects their commitment to assessing stability and combating inflation. Consequently, we expect mortgage rates to hover around 6-7% for the remainder of the year.
🌟 Sonoma County Housing Market:
Sonoma County's real estate market continues to exhibit strength and positive trends. Single-family home prices have risen by 8% year to date, showcasing the market's health and resilience. Despite the impact of higher mortgage rates, demand is on the rise, and the region has seen a significant number of new listings, which has led to price appreciation. Sellers are benefiting from greater negotiating power, with sellers receiving 100% of list price on average in April.
🌿 Inventory and Competitive Environment:
Although Sonoma County faces low inventory levels, a typical seasonal increase in new listings is expected. This growth in inventory, combined with robust demand, indicates an increasingly competitive market. Buyers should be prepared for limited options and higher prices as we head into the summer months. Months of Supply Inventory (MSI) remains below three months, underscoring the continued strength of the sellers' market.
The enduring appeal of Sonoma County's wine country lifestyle, combined with its strong market fundamentals, contributes to the region's resilience. As home prices have increased by 8% year to date, it's clear that buyers recognize the value and potential in owning property in this captivating area.
📞 Reach Out to Caroline Fuller:
If you're considering buying or selling a home in Sonoma County, I, Caroline Fuller, your SOCO realtor, am here to assist you every step of the way. Feel free to contact me for personalized advice and tailored real estate solutions.
Remember, the market may fluctuate, but our commitment to helping you achieve your real estate goals remains unwavering. Stay tuned for more exciting updates in our next newsletter, we’re the key to the best move you’ll make!
Stay up to date on the latest real estate trends.
Late Spring Market Update
Here are your buy before you sell options.
1508 Gretchen - The Fairest of them all
Our Sonoma County market is thawing out!
You’ve got questions and we can’t wait to answer them.