Char’s December 2023 Blog – Market Update

Charleen Price

8 months ago

Stay Up-To-Date on Industry Trends & Forecasts

A living room at Christmastime lit only by the fire and Christmas tree. 3d rendering

Wishing you a Happy Holiday!

My wish for you is that all your dreams come true. May your hearts be filled with hope and may you touch everyone you meet with joy for it is the little things that matter the most.

Wishing you and those around you a very Happy Holiday filled with hope, peace,

love and joy.

Charleen

Did You Know?

“There cannot be a crisis next week. My schedule is already full.” ( good reminder that while right now everything seems to be a big mess globally, tough times and big challenges have existed throughout time) Henry Kissinger
Is pent-up buyer demand breaking? 62% of home buyers are willing to wait for prices and/or rates to fall before buying a home…..but that is down from 85% just 6 months ago. (BOFA Report)
Recent data suggests that inflation may have had less to do with overspending than it did with pandemic-related disruptions. Surging inflation became a global issue starting in 2021 as the economy roared back to life: pent up demand – combined with lots of Covid-related savings (and government spending/stimulus) – fueled a level of demand that outstripped the planet’s capacity to meet supply. Some are predicting dis-inflation next…..in areas. Crude Oil was trading for $120 in June, 2022: Today its hovering around $70, down over 41% off a high mostly attributable to the Russian invasion of Ukraine.
The current market has created a very tricky conundrum for some investors when they’re thinking about investing for the long terms vs. how much they should have saved in cash. While inflation is down, returns on cash remain higher than the rate of inflation…. (CNBC)
The recent Bank of America Home Report revealed that 50% of current homeowners say they’d be prompted to sell if their dream home became available and/or if they found a more affordable area (54%) – even if it meant paying a higher interest rate for a new mortgage. Additional motivations for some, but not as many, to move and give up their current mortgage rate include:
- Job opportunity or job relocation – 40%
- Nicer neighborhood amenities – 40%
- The need for a larger home or more rooms – 38%
- A social community to be a part of – 32%
- A desire to be adventurous and move to a new area – 28%
- Moving to a home with rental potential – 21%
The following could or already has motivated them to move from one state to another:
- Cost of living – 60%
- Career/job reasons – 44%
- Family and relationships – 37%
- Affordability of housing– 33%
- Safety concerns – 27%
- Retirement – 25%
- Adventure and exploration – 20%

Trends & Forecasts

2024 Housing Market Forecast and Predictions: Housing Affordability Finally Begins to Turnaround
Will the Housing Market Roar Back in 2024—or Continue Its Downward Spiral?
Housing Market Predictions For 2024: When Will Home Prices Be Affordable Again?
Sonoma County Market Flipbook

Enjoying the Holiday in Sonoma Valley

Music & Entertainment:

Saturday Music at Passaggio Wines
Green Music Center
6th Street Playhouse – Santa Rosa
The Snow Maiden
Sonoma Valley Chorale 50th Anniversary Winter Concert
Nuncrackers: The Nunsense Christmas Musical
Duke Ellington’s Nutcracker featuring the Marcus Shelby Orchestra
Free Holiday Music on the Plaza
Jack London State Historic Park presents Winter Concert

Outings:

Christmas in the Redwoods
Holidays on the Northern Frontier
Cirque de Boheme
Your Universe Class
Hands on Cheesemaking Classes at The Epicurean Connection
Tour M.F.K.Fisher’s Last House –Bouverie Preserve

Home

Market Update

We are in the home stretch now and it’s hard to believe that we are racing toward a new year. Taking a look at the Sonoma Valley market in November, the recent data reflects the number of listings and median list price experiencing an increase of 9% over November 2022. Additionally, the number of pending sales also saw a notable uptick, rising by 11%. However, the number of sales and the median sales price experienced a decline of 19% and 1% respectively. Furthermore, it’s important to note that the days on the market showed an increase year over year, and not just in Sonoma Valley, but in most communities in the county. Could the increase in list prices be a factor in the increasing number of days on the market?

The increase in the number of listings and pending sales suggests growing interest and activity, and despite a slight decrease in the median sale price we feel there is a sustained demand and potential for property appreciation. However, the decrease in the number of sales may point to a more cautious approach by buyers, many sitting on the fence, potentially influenced by external factors such as high interest rates, economic conditions and market uncertainties.

The Sonoma Valley real estate market in 2023 displayed a mix of positive and challenging trends, reflecting the broader dynamics impacting the housing sector. And, while the market may continue to experience fluctuations, the underlying appeal of Sonoma Valley as a desirable residential destination is likely to support continued activity and growth in real estate.

Looking ahead to 2024, several factors may shape the Sonoma Valley real estate market. With the ongoing economic recovery and potential shifts in buyer preferences, it’s possible that the market could see a more balanced trend in sales and pricing. Continued interest in suburban and rural areas like ours, driven by remote work trends and lifestyle changes, may contribute to sustained demand. The evolving dynamics of the housing market, including potential interest rate adjustments and policy changes, could influence buyer behavior and market activity.

Please note, all information is for single family residences in the Sonoma Valley as reported to BAREIS, the local multiple listing service through Broker Metrics.

This BLOG is intended to provide information and content of value. Suggestions about what you would like to see more of, feel free to email me and certainly feel free to forward to friends and family.