Charleen Price – GRI

Char’s June 2024 Blog – Market Update

Charleen Price

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Market Trends & Forecasts

Market Update 

May is traditionally a very busy month for real estate sales and this May was no different. In many respects, the number of listings, pending sales and closed transactions were only marginally different, with closed sales taking a 9% dip year over year. What was surprising was the increase in three important categories: median list price, median sales price and the number of days on market.

Looking first at the median list price, we saw a 21% increase in year over year numbers from $1,647,000 in May of 2023 to $1,995,000 this year. The median sales price was also a dramatic increase, moving from $1,199,000 in 2023 to $1,412,500 this May, an 18% increase.

Finally, the days on market (DOM) was the most surprising with a 102% increase from 27 days to 54 days. This was particularly unusual as this is one of the largest DOM figures we have seen in more than a year in Sonoma Valley and along with the Napa Valley the largest value in any of the communities we tracked in the Wine Country. Keep in mind that any under-two month figure for DOM still reflects a sellers’ market.

There seems to be a resignation among many buyers that the interest rates may or may not come down any time soon and life may just have to go on. Putting life plans on hold while waiting for inflation numbers to lower or the jobs market to falter and for the Feds to act, simply isn’t worth the wait. Realizing that historically the average interest rate over the past 30 years clocks in at 6% may just be the best we will have for a while.

Looking ahead, we are cautiously bullish on the real estate market in Sonoma for the next few months. Of course, geo-political events (not to mention our own political event in November) along with environmental catastrophes could alter the optimistic view.

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.

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