Sonoma County’s median price for a single family home jumped to $720,000, up $5,000 in November and December, representing an 8% increase from the previous year. This is the highest growth since the start of the new decade. Total sales volume for Sonoma & Napa counties last year exceeded $6 billion.
Anchoring this growth are low-interest rates and millennials entering the home buying market. Historically low interest rates have allowed homeowners to spend less on their mortgages and allows buyers to put down more cash since they earn higher salaries. San Francisco and Bay Area homeowners began opting out of metro areas to move to the Wine Country as buyers sought more space and privacy. With many workers now able to work from home, workers can now choose where they want to live vs. living where they work, causing what is being termed the “Great Reshuffling”.