SONOMA COUNTY MARKET UPDATE
The first quarter of 2021 has been busy for Sonoma County real estate! The statistical reports are in, and I thought it might be interesting to share a few of the highlights.
Let’s compare the first quarter of 2020 with the first quarter of 2020 in a few categories including number of home sales, sales prices and inventory. It’s important to remember that April 2020 numbers were particularly affected as the real estate community adjusted to the pandemic and changed practices to safely serve our clients and friends.
MEDIAN HOME SALES PRICE
First, let’s talk median home sales price. What does “median” mean? Median sales price is the middle point for real estate home sales. It is not the same as the average price. The median sales price is the price in the very middle of a data set, with exactly half of the houses sold for less and half sold for more.
•The median home sales price is UP 15% from the first quarter of last year. In Sonoma County, the median home price is $740,000.
TOTAL SALES VOLUME
Sales volume is the number of units that are sold in a given time period. This is not to be confused with total sales, which are usually quantified as a monetary value.
•Sonoma County total sales volume is UP a whopping 62%.
•Sonoma County luxury home sales volume (above $2,000,000) is UP 382%.
PERCENTAGE OF SALES OVER LIST PRICE
•Sonoma County percentage of homes selling above list price during the first quarter of 2021 is 49%, compared to 30% one year ago. The average list price to sales price now stands at 101%.
MONTH’S SUPPLY OF INVENTORY
Months of Inventory is a measure of how fast all the existing homes on the market would last assuming a) no more listings are added, and b) the rate at which homes sell is a constant figure based on the average of the last 12 months of sales. A “balanced” market would have a months of inventory figure of 4-6 months.
•Sonoma County months of inventory is DOWN 30% from last year, indicating a strong Seller’s market in most areas. The current months of inventory for the area is 1.2, which is extremely low.
In our current market, a well-priced home in Sonoma County is priced at or slightly below market value. The appraiser is often the one who makes or breaks a deal when it comes to how high a home can sell, of course, unless it is a cash purchase. In today’s market, properties under $800,000 are selling faster--often with multiple offers and above the asking price. The higher priced homes above $800,000 are experiencing a slightly softer market, taking a little longer to close and with fewer offers.
It’s important to keep in mind that every home is different, and the market fluctuates. The current market definitely swings toward the Sellers. If you are considering selling your home, this market may reflect a great opportunity.
It’s important to speak with an agent experienced in your area to receive up to date information and to discuss the best options for YOU.