THE SONOMA COUNTY MARKET AT A GLANCE
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Under Contract44.29% ofproperties listed this quarter
From Pacific Union International Chief Economist Selma Hepp – Oct. 15, 2018
Sonoma County's housing market posted fewer sales in the third quarter compared with the same period last year. However, while the overall decline was driven by fewer sales of homes priced at less $1 million, higher-priced sales continued to trend up.
Following frenetic post-wildfire activity in the first two quarters of 2018 and rapid price escalation, buyer fatigue set in during the third quarter. Buyers across all price ranges became less willing to contend with multiple-offer situations, and fewer homes sold over the asking price compared with the same period last year.
Also, there was an increase in the number of homes for sale, especially in the sub-$1 million price range, which are now above third-quarter levels observed over the past three years. But while all price points showed an improvement in supply, buyers of homes priced above $2 million were more likely to absorb the available inventory than were buyers in lower price ranges.
Strong median price growth seen earlier in the year settled back to levels recorded before the October 2017 wildfires.
Looking Forward: Rebalancing of buyer and seller expectations, along with improved inventory and less price escalation, will bode well for a more normalized market. Increasing mortgage rates, however, may discourage some buyers who will be priced out of the market.
Defining Sonoma County: Sales data in the charts includes all single-family homes and farms and ranches in Sonoma County.