The Median home price in Sonoma County increased from December 2012 ($390,000) to December 2013 ($462,500) by a rate of 18.5% for Single Family Homes and the average price of a Single Family Home grew from $475,637 in 2012 to $528,653 (increase of 11.1% from Dec 2012 to Dec 2013. Home sales were down though, with 369 sold in December 2012 and only 328 sold in 2013. Monthly trends are also up. We saw prices increase from November 2013 to December 2013 in the Median price but a decline in the average price.
|Sonoma County Sales Stats|
|Dec 13||Nov 13||Dec 12|
|Sale/List Price Ratio:||98.4%||97.1%||98.3%|
|Days on Market:||84||81||104|
[Chart from the RE Report]
Low inventory levels are still the name of the game and the main driver of price appreciation. 2014 is expected to continue current growth trends as distressed homes continue to make up less of the market of sold homes and the transition to primary home buyers continues. Currently, Sonoma County is holding steady at 1.5 months of Real Estate inventory for sale (amount of time it would take to sell all of current homes for sale)
Condo's had a big year with large gains in 2013. Prices rose by 40.6% (median) from 2012 to 2013. The continual increase in prices is expected to moderate this year.
California Association of Realtors has published their 2014 market expectations with their California Housing Market Forecast CAR is expecting California home sales to increase 3.2% to $444,000 units which is an increase of about $14,000 homes sold. CAR sees the housing market continuing to improve in 2014 with Primary Home Buyers increasing in numbers and investor buyers making up less. CAR is forecasting median home prices to increase by 6% to $432,800 which is still far under the 2005 peak of $576,240. Affordability will continue to be a major driver in the decision to purchase a home.
Other 2014 forecasts by CAR are:
- US Gross Domestic Product of 2.8%
- Non-Farm job growth of 1.9% in California
- California unemployment decreases to 8.3% from 9% in 2013 and 10.5% in 2012
- Average interest rate for a 30 year fixed mortgage will rise to 5.3%
To find out current home sales in YOUR neighborhood or to have one of our Sonoma County Real Estate experts determine what your home would sell for in today's market, please contact us!