REAL ESTATE MARKET REPORT – 2019 vs. 2018
Fourth quarter activity in Sonoma County in 2019 saw a slight decrease of .4% in the number of single family homes sold from the same quarter last year. 1,042 units changed hands compared to 1,038 in 2018. The amount of inventory declined to 2.4 months indicating a countywide seller’s market. The average price increased 1.4% to $785,000 for the final quarter of 2019.
In the Sebastopol Area the number of units sold went from 64 in the fourth quarter of 2018 to 56 this year. The average price paid for a single family home decreased 4.6% year-over-year, to $956,000. With 3 months of inventory, some buyers are expecting sellers to accept a more buyer-friendly common ground when considering value. Expect to see a more balanced market in 2020 with prices perhaps already having found their peak.
The Coastal Sonoma market is small and so the sampling of data makes for unreliable analysis. The number of units sold was 13 in the fourth quarter. Given the vast price range for coastal properties, the average price paid was a respectable $929,000. Months of inventory remains high at 5.8 and average days on market has hit is 97, both indicating a balanced market. 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 $1,173,000. The volume of units sold is decidedly flat. Months of inventory has decreased to 5.9 indicating a more balanced market. We’ve seen big fluctuations in inventory in Healdsburg before, so buyers shouldn’t be concerned and sellers shouldn’t get too excited. Expect to see a strong but balanced market in 2020 with buyers and sellers negotiating their best deal and average price continuing to rise.
True to form, the Russian River Area exhibits good value for homebuyers. The average price for a single family home in the forth quarter of 2019 was $512,000. That is a 4.5% decrease over the same quarter last year. Compare that to the countywide increase of 1.4% and an average home price of 785,000! The number of days on the market has increased but the amount of inventory has decreased to 2.9. For now, sellers should expect that their homes will take longer to sell and buyers will have less properties to see until spring. Now may be the best time get a good deal on the river!
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®