Kirsten's Sonoma Real Estate Blog

- Sonoma Homes for Sale - February 7, 2012 -

2012 is off to a busy start in Sonoma Valley real estate sales with 92 listings under contract for purchase.  Our inventory of available properties remains scant with only 150 active listings up for grabs.  Inventory is typically light this time of year but this February we are at a six year low.   So what's on the market in Sonoma?  According to the Bay Area Real Estate Information Service (BAREIS) the breakdown of 150 listings looks like this:

BAREIS data provides greater detail on our inventory including the averages and median statistics for available listings:

I'm often asked to explain "DOM" and "CDOM."  So here's the deal.  The first is Days on Market with the current listing broker.  CDOM means Cumulative Days on Market---the amount of time that the property has been on sale---including all listings with other brokers.  Clearly, the highest priced properties take a long time to sell.

Most folks want to know what's happening with single family homes so I've provided a simple bar graph showing short sales, bank-owned, and non-distressed listings.  We continue to see about 25% of our total inventory in the distressed property categories.

Our inventory changes from day to day.  If you want the very latest information---contact me and you'll know what you need to know---right away.

~ Swim Through the Sky - Speechless Sunday ~

You can see much of Northern California from this amazing wine country view property.  Off the pool deck and straight ahead lies the San Francisco Bay.  Marin, Napa, and Solano Counties are displayed in a 360 degree panorama when you paddle your feet.  On a clear day, Mount Tamalpais, Mount Diablo, and the Sierra Nevada Mountains appear within reach.   This incredible property is a distressed wine country sale.  If you're curious and want more information, please contact me.  It's simply heavenly.

~ First Time Buyers Vs. Investors, Lenders, Appraisers ~

Rates may be historically low and prices finally affordable for first-time home buyers but a recent survey by Campbell/Inside Mortgage Financing shows that cash-carrying investor buyers are still having a huge impact in sales of residential real estate.   The most current data compiled by the Campbell Housing Pulse Survey, for sales through December 2011, shows that cash buyers purchased a very significant number of homes in each month of 2011.

I'm a participant in this survey of 2500 agents around the country.  It's clear to me that cash-waving investor buyers continue to drive down home values because they often offer as much as 10-15 percent less than those with financing.  Sellers will go for cash primarily for two reasons.  First, a buyer with financing might offer more but if the house doesn't appraise at that purchase price the loan won't be approved.  The other reason is lenders are taking so long to approve loans that sellers, many of whom must sell,  can't or won't wait to see whether the financing will come through.

What's the take-away?  Lending policies and appraisal methods must change.  These policies are continuing a downward spiral in property values.  Not only are they hurting homeowners across the land---they are preventing wanna-be first-time buyers from realizing their dreams.

Don't get me wrong.  Cash investor buyers have an important role to play in the housing recovery.  They are purchasing a lot of the distressed properties available today.  But lenders and appraisers must make it easier first-time buyers to take advantage of today's prices and rates because these are the homeowners who invest in more than just the houses they buy.  They invest in the future stability and well-being of our nation's neighborhoods and communities.