A combination of low inventory and growing sales of pricier homes contributed to an all-time high median home price of $644,000 in Sonoma County.
July saw a dip in the number of home sales from June (from 512 homes in June to 406 in July). The dip in home sales didn’t affect home appreciation, which managed to climb 3% from June to July. Brokers are blaming the home appreciation to persistent low inventory which has been plaguing Sonoma County for the last 4 years. Lower-priced homes tend to garner multiple offers which typically results in the home selling over asking price.
Buyers, in an effort to compete and secure a home in this tight market, are seeking out agents who have clients that are looking to list their home, but have not yet put the home on the market. Many of these buyers are willing to pay 10% or more over asking price for these homes.
Sellers, unfortunately, have become reluctant to sell their home because of the challenge of finding a suitable replacement home. With a tight rental market also in place, sellers are increasingly resistant to listing their home knowing they will likely be faced with trying to find affordable temporary housing.
While the number of new builds in the County has increased during the last 18 months, the number of units under construction will still fall short of demand.
With the current market factors in place, it appears home prices will continue to go up!