REAL ESTATE MARKET REPORT – 2018 vs. 2017
Fourth quarter activity in Sonoma County in 2018 saw a notable decrease of 7.9% in the number of single family homes sold from the same quarter last year. 1,027 units changed hands compared to 1,115 in 2017. The amount of inventory jumped to 2.6 months indicating a weaker countywide seller’s market than we’ve become accustomed. The average price dropped 1.6% to $777,000 for the final quarter of 2018. We had hit a peak for countywide average price in Q3-2018 of $815,000.
In the Sebastopol Area the number of units sold went from 66 in the fourth quarter of 2017 to 64 this year. The average price paid for a single family home increased 7.7% year-over-year, to $1,002,000. With 2.7 months of inventory, some buyers are expecting sellers to accept a more buyer-friendly common ground when considering value. The market is quite strong and prices are at historical highs, but the amount of inventory is rising and days on the market increasing. Expect to see a more balanced market in 2019 with prices perhaps finding their peak.
The Coastal Sonoma market is small and so the sampling of data makes for unreliable analysis. That said, Coastal Sonoma has seen a significant downturn in number of units sold, as has been the case since Q2-2018. Even so, the average price paid in the fourth quarter has bumped up to an impressive $1,028,000. On the other hand, inventory volume is up and average days on market has hit a concerning 119. All this provides mixed messages which highlights the need for sellers and buyers to enlist the assistance of an expert real estate professional who lives and works on the coast … like me … to sort it all out as it pertains to their specific wants/needs and situation.
As usual, the Healdsburg Area leads the way in average price at $1,147,000. The volume of units sold is rather flat, which is impressive given the bump-up in activity in 2017 as an aftereffect of the Santa Rosa firestorms in early October. In a notable reversal of a recent trend, months of inventory has significantly increased to 7.3! We’ve seen high inventory in Healdsburg before, so buyers shouldn’t get too excited and sellers shouldn’t be too concerned just yet. Expect to see a strong but balanced market in 2019 with buyers and sellers negotiating their best deal.
True to form, the Russian River Area exhibits good value for homebuyers. The average price for a single family home inched higher to $539,000. That is, however, a 7.8% increase over the same quarter last year. Compare that to the countywide decrease of 1.6%! The number of days on the market has increased as has the amount of inventory.
Do you have equations about how today’s market may affect your real estate goals? Contact me today.
Number of Sales and Average Price are for only the stated quarter/year. Average DOM and Months of Inventory are based on statistics for the last month of the stated quarter.Source: TrendGraphix Oct-Dec 2018
Lou Rosenberger, REALTOR®