As the month of August began, the numbers came in to assess the movement of home sales in Sonoma County. For the first time ever, Sonoma County has reached an average sales price which now peaks over $1,100,000. (Updated August 19, 2020)
How This Started
2020 has been interesting enough with all of the changes that it has brought. With the onset of Covid – 19 in March of this year and the shelter in place, it has created so many trajectory resets, both business and personal. The shutdown also created pent up demand. Then add in the historically low interest rates, we have been seeing a surge of people buying homes in Sonoma County with many times specific properties are receiving multiple bids.
In careful review of the market here, the one thing that is certain is that people are searching for a couple of things. The first would be what I call a “lifestyle” move, meaning with being able to work at home, people have decided to make a move to a place they truly want to be. For some, it is from one home to another and others it can be the purchase of a second home. Places like the Russian River area, Lake Tahoe and more of the country properties are in high demand. One thing is clear, people are looking for something that is more conducive to the life they want to have….they are redefining.
The Price of Dirt
The other thing to mention is that the dirt lots in Santa Rosa from the Tubbs fire are being sold at a much higher rate than the previous 9 months. Builders are savvy as they shop and when the dirt is priced well, these lots are selling. They see the growth in Sonoma County, which I don’t believe will stop.
Know The Facts
When I share that the average sales price has gone up however, this really is very area specific. Not all homes have appreciated drastically. To break down this market, each area has its own rhythm and desirability. Some areas are not moving as quickly, which is usually due to price and location. So this market is anything but general. Some areas of Sonoma County would be deemed a seller’s market while others would be considered more of a buyer’s market. The one thing to keep in mind that Price and Location are the most important things when listing your home. People are seeking specific homes and if you have what they want, you will get a good price.
The 4th Quarter – Coming Soon
As we move towards the 4th quarter of 2020 and the election becomes closer, I believe we will still see fluctuations in this market. There are some reporting that we could see another rate drop, which will further increase the buying power. The election year has some tension about the future of California, but more so, people are really asking themselves what they want for their life…a sort of redefining, which I always think is good.
The one thing about Sonoma County is that it has seen its share of adjustments the past few years. With the fires and floods of the past, this year, despite the pandemic,Sonoma County is truly capturing its place in the sun as one of the most desirable places to live in California…