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The Significance of Rental Price Increases for Real Estate

Posted on July 23, 2019 by Admin

According to Inman, “Rents in the US just keep going up and up…..The average rent was up 3.2% year-over-year in June. Last month also saw the biggest average rent increase in more than a year….”

In a nutshell, it’s a perfect time to buy rather than rent. Reasons why include:

  • Very low interest rates
  • A real estate market that has “softened” over the last year more in the direction of buyers
  • Tax breaks that come with buying and owning
  • Control over the place you call home
  • Realizing the “American Dream”
  • Building equity/apprecation over time (a house can be like a big piggy bank)
Zeroing in on Sonoma County, here’s what we have:
And take note: the “doldrums” of summer is the perfect time to visit open houses, get pre-approved for a loan, and make an offer. The market is typically “slow” this time of year, with more inventory and less bidding, so you are more likely to get something you want at a price that works.
Need help finding the right place? Give us a call. We are here to help you find your dream home!
Mark Stevens & Associates, 707 322 2000
Graphs courtesy of RentCafe

News This Week: August Home Sales and Auction Success

Posted on September 28, 2018 by Admin

EACH WEEK WE COLLECT TOP LOCAL NEWS AND RECENT REAL ESTATE STORIES

August Market Report

Reports are showing that August sales are still increasing over previous months. And that’s not all—comparative sales and home prices are higher than last year. READ MORE

Kosta Browne Hosting New Dinner Series

Beginning in November, Kosta Browne Winery will host exclusive dinners with custom menus created by renowned chefs. READ MORE

Newest American Viticulture Area in California

Winemakers in the new Petaluma Gap AVA are getting notice for the distinctive wines that are being made in the region. According to the Press Democrat, the cool climate produces “elegant, crisp and focused wines.” READ MORE

Record Set at Sonoma County Wine Auction

The love in the air is thicker than the smoke. This year’s Sonoma County Wine Auction raised $5.7 million for charity. Enthusiasm was fueled by the focus on rebuilding efforts after last years devastating wildfires. READ MORE

 

 

 

Market Update for Sonoma County

Posted on August 06, 2018 by Admin

California home sales stumble in June as median price hits new high for second straight month

– Existing, single-family home sales totaled 410,800 in June on a seasonally adjusted annualized rate, up 0.4 percent from May and down 7.3 percent from June 2017.

– June’s statewide median home price was $602,760, up 0.3 percent from May and 8.5 percent from June 2017, hitting another peak.

– California condominiums/townhomes recorded a 7.0 percent price increase and a 7.1 percent sales decline from June 2017.

LOS ANGELES (July 23) – California’s median home price edged higher to another peak in June as year-over-year home sales lost steam for the second straight month.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 410,800 units in June, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. The statewide annualized sales figure represents what would be the total number of homes sold during 2018 if sales maintained the June pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.

June’s sales figure was up 0.4 percent from the revised 409,270 level in May and down 7.3 percent compared with home sales in June 2017 of 443,120. The year-over-year sales decline was the largest in nearly four years.

“California’s housing market underperformed again, despite an increase in active listings for the third straight month,” said C.A.R. President Steve White. “The lackluster spring homebuying season could be a sign of waning buyer interest as endlessly rising home prices and buyer fatigue adversely affected pent-up demand.”

For the second straight month, the statewide median home price hit another peak price at $602,760 in June. The June statewide median price was up 0.3 percent from $600,860 in May and up 8.5 percent from a revised $555,420 in June 2017. June marked the fifth consecutive month that prices increased by more than 8 percent annually, indicating that price appreciation remains robust and is not showing any signs of leveling off. The median price is now 1.4 percent higher than the pre-recession peak and has been growing on a year-over-year basis for more than six years.

“Although home prices increased year-over-year in virtually every region of the state in June, at the same time, nearly every county experienced a significant contraction in home sales from a year ago,” said C.A.R. Senior Vice President and Chief Economist Leslie Appleton-Young. “With the year-to-date sales tally now in negative territory, the back-to-back sales declines could be an early sign that the market is transitioning, especially since further rate increases are expected to hamper homebuyers’ affordability and put a cap on how much they are willing to pay for their new home.”

Other key points from C.A.R.’s June 2018 resale housing report include:

  • On a regionwide, non-seasonally adjusted basis, all regions recorded year-over-year sales declines. Sales in the Bay Area dipped 0.8 percent monthly and fell 8.2 percent annually. Sales in the Inland Empire slipped 1.2 percent from May and was down 14.5 percent from a year ago. Sales in the Los Angeles metro region edged up 0.9 percent from May but was down 12.4 percent annually.
  • The Bay Area Region, which previously led the state in home sales, registered significant year-to-year sales decreases in seven of nine Bay Area counties. Only Alameda and San Francisco counties recorded annual sales gains, while Contra Costa, Marin, Napa, San Mateo, Santa Clara, Solano, and Sonoma counties experienced annual sales declines.
  • The Central Valley Region experienced the smallest sales contraction with sales falling 6 percent on an annual basis. Only Merced County posted a year-over-year sales increase, rising 15.2 percent from a year ago. Five counties – including Glenn, Kings, Madera, San Benito, and San Joaquin – posted double-digit annual declines, while Fresno, Kern, Placer, Sacramento, Stanislaus, and Tulare recorded single-digit annual decreases.
  • The Southern California Region suffered the largest home sales drop, falling 11.7 percent from May. Every county within the region posted declines with all but Orange and San Diego counties experiencing a year-over-year, double-digit pullback. Even the Inland Empire, which had been buoyed by San Bernardino County for the past several months, experienced significant declines.
  • By price segments, sales in every price category under $1 million contracted but lower-priced homes registered the largest sales decline as homes priced below $300,000 fell 23.8 percent from a year ago. At the other end of the spectrum, sales of homes priced $1 million and above increased 7.2 percent from June 2017. The very top end of the market, in particular, continues to post double-digits gains with homes priced over $2 million rising year-over-year by more than 13 percent in June.
  • The Bay Area continued to register the strongest home price gains with the region as a whole recording a 16.1 percent annual increase. While Contra Costa, Solano, and Napa counties experienced single-digit price advancements, the remaining regions experienced an uptick of more than 10 percent. Despite being two of the state’s least affordable markets outside of San Francisco, San Mateo and Santa Clara counties led the pack in price gains.
  • Home price growth in Southern California was more tepid by comparison, increasing by mid- to high-single-digits. Prices in San Bernardino – the most affordable county in the region – had the largest growth rate, and prices throughout the rest of the region grew at a more modest rate ranging between 5.1 percent and 6.9 percent.
  • Statewide active listings improved for the third consecutive month, increasing 8.1 percent from the previous year. The year-over-year increase was slightly below that of last month, which was the largest since January 2015, when active listings jumped 11.0 percent.
  • As sales declined from a year ago, the unsold inventory index, which is a ratio of inventory over sales, increased on a year-over-year basis as well. The statewide unsold inventory index edged up to 3.0 months in June from 2.7 months in June 2017. The index measures the number of months it would take to sell the supply of homes on the market at the current sales rate.
  • The median number of days it took to sell a California single-family home remained low at 15 days in June, unchanged from 15 days in June 2017.
  • A.R.’s statewide sales price-to-list price ratio* was 100 percent in June, unchanged from June 2017.
  • The average statewide price per square foot** for an existing, single-family home statewide was $290 in June, up from $270 in June 2017.
  • The 30-year, fixed-mortgage interest rates averaged 4.57 percent in June, down from 4.59 percent in May and up from 3.90 percent in June 2017, according to Freddie Mac. The five-year, adjustable mortgage interest rate, however, edged higher in June to an average of 3.82 percent from 3.79 percent in May and from 3.14 percent in June 2017.

Article courtesy of California Association of Realtors, July 23, 2018

Why 2018 is the Year to Sell Your Home: An Economic Overview

Posted on June 12, 2018 by Admin

Considering selling your home or real estate investment? Projected economic and job growth coupled with an anticipated rise in interest rates (toward the end of this year and into the future) means that this spring and summer is the perfect time to sell your home. High demand and low housing inventory has made the first half of 2018 a seller’s market in the majority of the top housing markets in the United States.

This is a rare opportunity for sellers— you may get more than your asking price. Buyers are eager to close before the anticipated rise in mortgage payments; and the market is competitive, leading to bidding wars that are raising sales to well above listing prices, increasing your profits.

OUR ECONOMY: According to real estate economists, the economy will continue to grow over the course of the next 3 years, with 2.8% projected growth in 2018. Although the forecast is looking good for long-term growth, the anticipated surge may slow to 2% by 2020.

INVESTMENT ACTIVITY AND HOME PRICES: An economic rise featuring continuous job growth is expected to generate a boost in investment activity, making 2018 a perfect time to sell. “It appears that the forecast for strong economic growth may lead to higher levels of investment activity. According to urbanland.uli.org, survey respondents increased their expectations for transaction volumes for 2018 and 2019 (up $23 billion in 2018 and up $11 billion in 2019).” Alongside the increased investment activity, we will likely see a continuous rise in prices of homes over the course of 2018. Home prices will continue to surge until 2020, but at a decreased pace (5% in 2018 and 2.3% in 2020).

INFLATION AND INTEREST RATES: There is some anticipation that inflation rates will be on the rise until 2020 (resulting from the GDP growth rate). As inflation progresses, interest rates also increase leading to higher mortgage payments. We have already begun to witness the widespread anxiety that stemmed from an initial increase in interest rates— the stock market swing in early 2018.

So what does this mean if you are selling your home or property?  

Buyers will likely feel a growing sense of urgency to invest now, before rates surge even higher. Lingering fear from the housing collapse a decade ago may prevent potential buyers from investing as they see interest rates continue to climb. Although the fear is understandable, the average mortgage payment (adjusted for inflation) still falls approximately 36% below what we were paying back in 2006. Nonetheless, we may see some buyers leaving the market.

There is low housing inventory and buyers are ready to find their homes… But don’t wait too long, because your perfect buyers may decide to wait out this next cycle of economic uncertainty and the advantageous bidding wars that can escalate your returns $50k-300k will disappear with them.

Contact me at 707.322.2000 for information about selling your home in Northern California.

*Economic data taken from the most recent ULI Real Estate Economic Forecast

 

The Best Time to Sell Your Home in California

Posted on May 14, 2018 by Admin

The Next Three Months:  Best Time to Sell Your Home in California

  • Nationwide, May is the best month to sell a home for more than its value, with sellers receiving average premiums of 5.9 percent between 2011 and 2017.
  • In 85 percent of California markets, May, June, and July are the top months to sell a home.
  • April and May are the best months for sellers in the Bay Area, while Southern California sellers have the greatest chances of receiving premiums in June.

May is the best month to sell a home, according to a new ATTOM Data Solutions analysis of 14.7 million home sales from 2011 to 2017, which shows that homeowners selling in May realized the biggest premiums above estimated market value — 5.9 percent on average — of any month.

The best day of the year to sell a home is June 28, with an average seller premium of 9.1 percent, according to the analysis.

The best month to sell varied from market to market, with warmer weather markets such as Miami (January) and Phoenix (November) bucking the national trend, according to the analysis. Take a look at the map below to find out the best month for selling a home in your local market.

Click here to find out more:  Attomdata.com