Sales in Sonoma County Jump 10% to $3.97 Billion in 2017

Sales in Sonoma County Jump 10% to $3.97 Billion in 2017

A record amount of money changes hands in the Sonoma Country Real Estate market at the end of last year. Sales were extremely driven for housing after the fires that burned thousand of homes.

At the end of last year, buyers purchased nearly $738 million in houses and condos in Sonoma County, according to The Press Democrat’s monthly housing report.

The previous record for November and December was $659 million, set in 2005 in the midst of the national housing bubble, which were all too familiar with.

For 2017, buyers spent $3.97 billion on houses and condos, a 10.2 percent increase from 2016. When not adjusting for inflation, only 2005 produced a higher total, a record $4.41 billion that became a high water mark before a national housing crisis sent prices tumbling a few years later.

For the past five years, the county’s housing market has been marked by rising prices and stable or declining sales. Real estate agents consistently have called it a seller’s market, with relatively few homes available given the number of buyers making offers. But wildfires in October scorched more than 5,100 homes and claimed 24 lives in Sonoma County. Brokers are still trying to understand how the fires changed the market, even as we start 2018 – we are figuring out where the market will take us this year. Will there be more inventory or less due to the damage in 2017?

For November and December, Laws simultaneously reported a spike in new listings and a drop in inventory. There were increased sales and rising prices.

Many properties that had seemed “overpriced” before the flames were snapped up in November by those desperately seeking a place to live, a local was quoted saying late last year.

The number of both completed sales and new listings rose to the highest level for November and December since 2005. But the number of available homes on the market took a downturn after the fire.

December ended with fewer than 390 single-family homes for sale, a decline of 20 percent from a year earlier.

 

The median price for a single-family home reached a record $669,500 in December, an increase of 14.4 percent from the previous year.

Before the housing crash, the monthly median hit a high of $619,000 in August 2005 and later plunged to a low of $305,000 in February 2009. Countywide, sales of single-family homes rose to 4,724 for the full year, an increase of 1.1 percent.

 

Most of those sold lots are expected to eventually be resold with newly built “spec” homes on them, meaning houses offered for sale by speculators. We must rebuild, and have come together stronger than ever in this community. We have very exciting projects coming in the new year, and are excited to providing amazing properties for people who are ready to make Wine Country there permanent home, or beautiful retreat to enjoy the seasons.

Continue to come back and check in, as we will have very exciting projects to unveil from our 2018 collection!

Check us out on our Facebook Page, as we provide plenty of updates featuring our updating listings and what is currently going on in the market.