Stay Up-To-Date on Industry Trends & Forecasts
Wishing you a Happy Thanksgiving!
“There is always, something to be thankful for.”
I am very grateful for your loyalty and support. May your holiday be filled with joy, laughter, and delicious food.
Did You Know?
- A recent survey by WSJ Intelligence of more than 2,200 wealthy individuals found a majority planned to finance their next home purchase. Only 39% of the respondents—whose net worth averaged $4.76 million—planned to pay cash. Often wealthier people prefer borrowing – even at higher rates – instead of liquidating stocks to generate cash that may be depressed in value….and trigger capital gains taxes. If you can generate 15% returns on investments, borrowing at 7.5% is a good deal…. Buying a home with all cash and then financing aloting the cash towards investments allows you to write off all the interest for tax purposes too…. For many of the wealthiest, homes are a relatively minor portion of their assets. (BARRONS)
- From 1980 to 2012, a steady 25% of all homes were owned by those 65 and older. Today that figure stands at 33%. Older home owners often have paid off their mortgages, usually have more assets and savings than younger generations, and their savings now yield higher returns…..which all means the chances of them defaulting – or being forced to sell – is lower than in prior decades. (BLOOMBERG)
Trends & Forecasts
- Napa, Sonoma & Solano Counties: Home Price Map
- Housing Market Predictions For 2023: When Will Home Prices Be Affordable?
- Sonoma County Market Flipbook
Enjoying the fall in Sonoma Valley
- Best Ways to Enjoy Fall in Sonoma Valley
- Lighting of the Sonoma Plaza 2023
- Thanksgiving Turkey Appreciation Day at Charlie’s Acres
- Hands on Cheesemaking Classes at The Epicurean Connection
- Saturday Music at Passaggio Wines
- Holiday Decorations Have Arrived
- YWCA Safe ‘n’ Warm Coat Drive
- Giving Tuesday 2023: 5 Ways To Give Back In Sonoma Valley
- Holiday Make-In: Peace, Joy & Chromacolor
Home
- Turkey Day Countdown: 7 Things to Do This Weekend
- Your Post-Thanksgiving Game Plan
- November Cleaning To Do Checklist
Market Update
It was interesting to look back at our market report from October of 2022. The number of pending and closed escrows was down substantially in Sonoma Valley by 49% and 58% respectively in October 2022 over 2021 while the median sales price had only dropped by about 6% during that same period. Fast forward to October ‘23 and we found the number of pending sales was up by 24% year over year and the number of closed sales was up by 100% over the 2022 figures. The ‘days on market’ clocked in at 49 days, a 17% decrease year over year.
That is not to say that 2023 has not been a challenging year.
We have seen the effect of global uncertainty, a volatile stock market and maybe most impactful on the real estate market, the increase and velocity of those rising interest rates. In the last 10 months, rates have risen from approximately 6 to 8 percent, which by all accounts has challenged even the most stalwart potential buyers.
But, overall, the Sonoma Valley numbers remain fairly strong with the median sales price remaining over $1 million, at $1,012,000 in October, but 9% below the October 2022 median sales price of $1,110,000. Again, we have to remember that the number of transactions in Sonoma Valley is small, and our market is definitely on the higher end of the scale in terms of median prices. It is hard to draw conclusions about broader markets, but checking in on Sonoma County we find that the median price of closed sales in that larger market is up 6% year over year.
As we write this, we look ahead with cautious optimism as the Feds held steady on another increase in interest rates, and the mortgage markets and the broader stock market reacted favorably. And, as we noted last year at this time, we live and work in one of the most beautiful and sought-after places in the world; and life circumstances will always require people to buy and people to sell their homes.
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