What Are Sonoma Real Estate Buyers Waiting For?
Sonoma real estate buyers have slim pickin's right now. We currently have 210 active residential listings. That's about 60% of the inventory we typically have this time of year---the "hot" spring selling season. Of those listings, 16-17% are distressed sales. These are properties that are either bank-owned or short sales. Looking at the stats a different way---80-84% of properties listed are non-distressed. Many of them are listed at the lowest prices for Sonoma real estate that we've seen in 7-8 years.
With all the headlines about bank-owned screaming deals, buyers seem to think they can scoop up real estate at bargain basement prices just about anywhere. This is not the case everywhere and especially not so in Sonoma Valley. Demand for properties here is always strong..even in a weak economy. We're in the ""wine country" . We are within an hour of San Francisco, the Pacific Ocean, and just a few hours from the Sierra Nevada Mountains with some of the best year ‘round outdoor recreation in North America. Our market is small and about 80% of purchases are made by residents from the greater Bay Area.
View Sonoma Valley real estate "market" in a larger map
Here's some more inside info for Sonoma Real estate buyers: properties don't turn over very quickly here. This is an area where folks buy for the long term and that often means the properties pass from generation to generation. There's a lot of equity in Sonoma Valley real estate. Families have deep roots here, including mine. My grandparents bought their property in Glen Ellen 1943. It remains in the family today.
The vast majority of Sonoma property owners don't have to sell and many won't in this market. That means inventory will remain limited. So the message to buyers is this: if you are looking for Sonoma real estate today, and you see something that strikes your fancy, make an offer now. Sonoma real estate prices and values will rise again. I think it will happen sooner than many anticipate. So what are Sonoma real estate buyers waiting for? I'd love to know.
Want info about the best real estate in Sonoma, Glen Ellen, Kenwood, Petaluma, Santa Rosa, Sebastopol, or Healdsburg? Call, text, or email me. I will listen carefully and promise the straight talk you want and need.
Search Sonoma Listings Search Glen Ellen Listings Search Kenwood Listings
Search Petaluma Listings Search Santa Rosa Listings Search Sebastopol Listings
707.337.1182 | Kirsten@KirstenLindquist.com | SonomaIsHome.com
Pacific Union International & Christie's Great Estates
The Best Sonoma Real Estate
109 East Napa Street | Sonoma, CA 95476
CA DRE #01313592
I can only speak for myself but for us it is a matter of affordability that is keeping us from buying.
We are currently renting but would like to buy in Sonoma. Our rent is $2000 a month. A similar home we are looking at is going for $699,000. We have saved up over $150,000 but even with 20% down and a decent mortgage rate we are still looking at nearly $4000 a month in payments including taxes and insurance if we were going to buy. We just can't justify paying the extra $2000 a month and truthfully can't afford it. (Yes I know we would get to deduct the interest but you are also paying to maintain the home over the long haul which makes it more of a wash in my book).
Sonoma has become the land of the 2nd homes for the SF elite. That's great for them and their real estate brokers earning commissions but tough for people like us.
Real estate agents keep telling us that rates are low and now is the time to buy before prices head up. But we can't afford these prices so I guess we're going to be priced out for a while. All the more depressing because we know others our age who bought in 2005, have stopped paying their mortgage, and are living for free while they wait for the bank to foreclose. I thought we were smart avoiding the bubble. Now were looking like idiots as they save up while living rent/mortgage free.
So if you'd love to know... that's our story.
Jason: Thank you for commenting and telling your story. This is a tough real estate market for most people whether buyers or sellers. It's been tough for most in the business of selling, fixing, and building homes, too.
Sonoma has become a second home market, no doubt. I think there are a number of factors: proximity to SF, the cache of the "wine country," and burgeoning number of retiring baby boomers who buy the 2nd home here before selling their primary residence to move here full time.
I encourage you to think some more about buying a home while prices are lower than they've veen in many years...and rates remain low. Have you considered a lower priced home to get into the market? I think you are being very smart to save your money. And the others who are waiting for the bank to foreclose....I don't envy them or the poor credit issues they will likely face for years to come.
I hope you'll talk to your realtor to re-examine your options. I think if you find the right property at the right price you might decide it's a good time for you to buy.