Home prices were up slightly last month in Napa, Sonoma and Solano counties, but down in Mendocino, Lake, Marin counties and the Bay Area.
The median price for a single family home across the nation last month was $440,000, while in California the median price was $839,500. Inventory of available homes for home buyers is falling as are closed deals. MLS data for August shows inventory in the North Bay was 2,747 homes, 13% below July 2022 and 14% below August 2021.
While sales have fallen, they were still 21% higher than sales in July of this year, with about 40% of homes seeing price reductions and staying on the market longer before they eventually sell. However, homes are still selling above list price, accounting for 42% of sales in August in Sonoma County.
Rising interest rates have contributed to the stabilization of the market to pre-pandemic levels. Homes priced $2 million and above seem to be faring well and are enjoying a bounce-back. It remains to be seen how additional rate interest hikes will affect the housing market since we are now approaching the fall/winter season, which typically translates to a housing market slowdown anyway.