Housing Market Update
Continuation Of A Balanced Market
The Sonoma County housing market is still in a balanced market and the prices here can range from $125,000 to just under $16 million. The interest rates according to the Fed are now predicted to stay low for most of 2019, keeping the rates in the low 4.00% range. This bodes well for the housing market, keeping the cost of borrowing money very low for prospective home buyers.
Average Listing Time
Though the average market time for homes listed can run out to 60 days, there are still those homes that can close fairly quickly. Currently with Sonoma County having slightly over 700 listings which could grow as we continue into the spring months. Housing is still in high demand in Sonoma County.
A Piece Of Truth
Many listings are sitting on the market at least 60 days or more. With the amount of buyers looking, there is usually a good reason. Luxury price point homes attract a very specific buyer, which can take more time. Those homes listed below the luxury price point can sit or expire for one or all of these reasons: Price, Presentation and Marketing. Buyers only want to pay for real value with the home they choose. We are seeing evidence of this from the price reduction of lots for sale in Fountaingrove to homes on the market over 45 days.
How To Sell in This Market – Price It Right
Now in a balanced market, the rules of engagement are more realistic. Buyers will only put offers on homes that are priced right and they do their research. They don’t want to throw away their hard earned money. Knowing the local market, will give you the range you should price your home at. If you look at the home you want to sell, ask yourself if you would pay the price you are asking. Many times you may rethink your original choice. Sometimes a seller can get stuck on wanting a certain price for their home, which can actually prevent their movement forward, to the next chapter of their life.
Presentation At It’s Best
Presentation of the home is so extremely important. I recently viewed an open house that had accent walls of different clashing colors. There were also personal belongings of the current homeowners and a very distinctive odd smell in the house. THAT is a huge detractor from having a buyer interested in the home. With the average sales price of over $620,000 in Sonoma County, any listing should be clean, staged and presented at its very best. You want to attract buyers that can truly picture themselves in the home. You don’t want them looking at all that they would need to do to fix it.
The last step is marketing. Every home listed with a real estate agent gets listed in the MLS, which is the first step. The more people i.e., real estate agents, buyers, neighbors and connections know about the listing, the more exposure your listing gets and the quicker it will sell. Brokers tours, Open Houses and knocking on the doors of neighbors all adds to the exposure. A good real estate agent will do all these for you along with a tremendous amount of social media marketing, which is one of the best cutting edge avenues of maximum exposure.
Value = Price
So in closing this update out, the real estate market is truly a great one of being a balanced market. The listing I just sold in Petaluma closed in 18 days, was priced right, staged and marketed. It ended up selling for over the asking price, drawing in multiple offers. At this time, sellers still have the opportunity to sell their home at a great price. Buyers have the opportunity to purchase a home and get REAL VALUE for the PRICE they are paying. Everybody wins.
San Francisco IPO’s – 2019
With the upcoming San Francisco IPO’s being released in 2019, it will take time to see the affect on the Bay Area housing. Once companies go public, there is typically contractual restriction from selling their shares for 90 to up to 180 days. Information provided by The Guardian.
By: Holly Young
Holly Young Properties