After a slow first quarter, home sales picked up in Pacific Union’s Sonoma County region during the second quarter. The number of available homes rose above first-quarter levels but still lagged behind totals recorded one year earlier. The tight supply kept buyers scrambling and guaranteed multiple offers for the most attractive homes on the market, helping to drive the median sales price up moderately.
Fewer lower-priced homes were available than in past quarters: The short sales and foreclosures that dominated the market several years ago have all been sold, and price appreciation moved the market higher. Homes selling for $900,000 to $2 million had the highest increase in sales during the second quarter, while the number of homes priced below $400,000 shrunk by almost one-half.
Looking Forward: July and August typically see fewer sales, but we expect real estate activity to once again pick up by mid-September. Sellers will still have the upper hand in the third quarter, but Sonoma County will continue to move toward a more balanced market, and buyers will have increased negotiating room. Home shoppers will be plentiful, spurred by the probability of rising mortgage rates. Sellers who put their homes on the market at a fair price will likely see multiple offers and a quick sale.
To read about other Bay Area regions, Click Here.