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Real Estate: The “Bright Spot” in California’s Economy

Posted on December 17, 2020 by Admin

The beginning of 2020 saw the California real estate market humming along at a good clip. Then came March and the COVID-19 lock-down and everything came to a screeching halt. Sellers pulled homes off the market, afraid of contagion, and buyers stopped looking, mostly for the same reason, as the entire US economy literally shut down for about the next three and a half months.

But in June of 2020 things began to change. Real estate was designated “essential” and Home buyers, driven by a refocused need of home as a refuge, began to come out again. This resurgence was in part fueled by a large segment of workers in our economy who needed to work remotely from home, many with children who were also schooling remotely from home. Home has always been held in high esteem, but the pandemic raised the idea of Home as a Refuge to new levels of demand not seen before.

In July, the California Association of Realtors (C.A.R.) reported that home sales across the state rose by a whopping 42% from May to June 2020. That’s partly due to the state’s gradual reopening which happened at that time as well as from pent up buyer demand.

What was a surprise and has since become a trend is the exodus of buyers leaving high priced, high-density urban areas, like San Francisco, for suburban areas that offered more space, privacy, and affordability. In fact, as we speak, San Francisco continues to experience a softening of prices in its housing market. And local news channels report that a significant number of San Francisco rentals are sitting vacant.

As an example, this trend was readily seen last summer in areas like the Russian River of the North Bay. Out of the way comparatively “cheap” river shacks along Rio Nido, Guerneville, Monte Rio and Cazadero were gobbled up like so many potato chips left unattended at a picnic with all-cash offers and little to no contingencies. Other rural to suburban areas, like Murphys, is experiencing similar value shifts in its housing market. With many now having the ability to work remotely, areas once inaccessible as a primary residence are now doable.

Home Buying Institute (HBI) predicts the following for the California real estate market in 2021:

  1. Home price appreciation will tick upwards as buyers and sellers realize that real estate deals can still be conducted despite the pandemic and because of upcoming vaccinations which will help to create confidence and normalize life.
  2. “Urban Flight” will continue to be a thing, with the desire for space and privacy at an all time premium which will continue to drive up prices in small towns, suburbs and more rural areas.
  3. Home inventory is expected to grow as more sellers get comfortable with putting their home on the market again and as we see more foreclosures come to market.
  4. Mortgage rates are expected to stay at an all time low at around 3-3.5% well through 2021.
  5. An increase in home sales is expected as the urban to suburban migration continues, which should keep California’s real estate market very active all through 2021.

In conclusion, the housing market continues to surprise economists and analysts. During this unprecedented pandemic it has been referred to, repeatedly, as the one “bright spot” in the nation’s economy. This surprisingly strong performance is expected to continue through the end of 2020 and well into 2021. And as we collectively face the challenges ahead, including what is now commonly termed a “dark winter” it’s nice to have a bright spot on the horizon. Finally, it’s worth remembering that the shortest, darkest day of the year is December 21st, but after that, days will get longer and brighter. Think of the pandemic as the shortest, darkest day of the year and look forward to things getting better and brighter.

Wishing you and your loved ones hope and brightness in the days to come. May 2021 be the year more of our hopes and dreams come true.

—Mark Stevens

December 18, 2020

 

 

Source citations:

Norada, https://www.noradarealestate.com/

HBI (Home Buying Institute), http://www.homebuyinginstitute.com/news/california-housing-predictions-for-2021/

News This Week: Coastal Getaway and 2019 Garden Goals

Posted on December 28, 2018 by Mark Stevens

DISCOVER THIS WEEKS  EXCITING LOCAL NEWS AND TOP REAL ESTATE STORIES

1) Sonoma and Mendocino Coast Weekend

Locals know that winter is one of the best times to enjoy the our coastline. This guide will give you the perfect itinerary for a weekend enjoying a few highlights that the Sonoma and Mendocino coast has to offer.READ MORE

2) Habitat for Humanity Plans Local Factory

Habitat for Humanity is planning to open a facility that will build components for prefab homes. The space will help the nonprofit to reach their goal of constructing 600 new homes in Sonoma County in the next eight years. READ MORE

3) Be The Best Gardener You Can in 2019

This list of ten garden goals for 2019 will get you inspired to get back outside. From going non-toxic to teaching kiddos to love to garden, these are some resolutions that we can get behind. READ MORE

4) Your Chance to Own an Amazing Treehouse.

o2 Treehouse, based in Oakland, built an amazing pinecone shaped getaway that could be yours for $150,000. With 64 windows in the 102 sq. ft. space, you will truly feel like a part of the forest. READ MORE

 

News This Week: New Michelin Guide and Holiday Gifts

Posted on November 30, 2018 by Mark Stevens

DISCOVER THIS WEEKS  EXCITING LOCAL NEWS AND TOP REAL ESTATE STORIES

1) Three Stars for Single Thread

Michelin just announced their rankings for bay area restaurants, and Healdsburg’s Single Thread continued its success by gaining its third star. The Michelin Guide’s Bay Area list has eight restaurants with three stars, six restaurants with two stars and 43 with one star. READ MORE

 

2) Burying Electrical Lines May Prevent Wildfires

PG&E is installing power lines underground in West Sonoma County to better understand the costs and benefits of burying power lines for wildfire prevention. READ MORE

 

3) Sonoma County’s Natural Resources Are Worth Billions

A new report assigns a dollar value to the “nature” resource of Sonoma County that is approximately $6.6 billion per year. READ MORE

 

4) Guide for Local Holiday Gifts

#Buy Local and discover one-of-a-kind gifts for anyone on your list this year. READ MORE

News This Week: Election Results

Posted on November 09, 2018 by Mark Stevens

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

 

1) Sonoma County Voters Approve Funds for Parks

Voters approved Measure M by an overwhelming margin on Tuesday. The Measure increases sales tax in Sonoma County by one eighth of a percent. Revenues will be used to maintain county and municipal parks. READ MORE

2) Butte County Fire Darkens Sonoma County Skies

Smoke from the Camp Fire, burning over a hundred miles to the north east of Sonoma County, is reminding many residents of the devastation that we experienced 13 months ago during the Tubbs Fire. READ MORE

3) Mixed Success for Affordable Housing Ballot Measures

There were seven measures on the Napa County and Santa Rosa ballots that aimed to address affordable housing issues. Of the seven measures, three failed to get the necessary votes. READ MORE

4) Prop. 6 Defeat Allows Infrastructure Improvements in Sonoma County to Continue

The defeat of Proposition 6 means that local projects such as SMART train expansion and Highway 101 widening will continue to receive funding. READ MORE

featured image courtesy of pressdemocrat.com

History of the Sonoma Valley AVA: Making Wine For 150 Years

Posted on November 07, 2018 by Mark Stevens

The fledgling town of Glen Ellen has a post office, hotel and cooper shop. The area is home to “some of the most experienced vine-growers in the county . . . a radius of six miles, with Glen Ellen at its center, would, in the opinion of many, include the finest grape-growing section in the State of California.”
—Thompson’s Historical Atlas of Sonoma County, 1877

The Sonoma Valley AVA is the first winemaking region in Sonoma County. Home to one of the original commercial wineries in California (established in 1857), Sonoma Valley produces unparalleled, world class wines that bring in tourists from all around the globe.

*There are 18 AVAs in Sonoma County, encompassing 60,000± acres of planted vineyards & 425± wineries. The Sonoma Valley AVA is in the Southern portion of the county on the border of Napa County.

Sonoma Valley earned AVA status in 1981. It consists of 55 wineries and 14,000± vineyard acres along a 17± mile stretch of the Valley of Sonoma (also known as the Valley of the Moon). This unique and beautiful region is bordered by the Mayacama Mountains to the east and the Sonoma Mountains to the west. Significant towns of the region include Glen Ellen, Sonoma and the hamlet of Kenwood.

The vineyards are planted among groves of ancient Valley oaks. Established aquifers and seasonal creeks provide water year-round. Once home to Native American tribes, pioneers during the California Gold Rush era, grizzlies, Steelhead trout, salmon, migrating birds, tule elk, and pronghorn, the valley is rich in human and ecological history.

Known for its unique terroir, the vineyards of Sonoma Valley have long benefited from the cool air that flows through the valley from the Pacific Ocean and San Pablo bay. The valley has ideal growing conditions for the world-class Chardonnay, Pinot Noir, Cabernet Sauvignon and Merlot grapes of the region. Sonoma Valley winemakers have, for decades, transformed these grapes into fine wines that are unparalleled in body and flavor.

Discover a Few of Our Favorite Historical Wineries in the Sonoma Valley AVA

Established in 1857, Gundlach Bundschu is the oldest continuously operating family winery in California. The walls of the tasting room showcase the deep history of the winery. Surrounding grounds offer some of the best picnicking in the area. The tasting room is open daily 11 am – 4:30 pm.

Buena Vista Winery opened just three months prior to Gundlach Bundschu. Now owned by the Boisset Family, you can travel back in time with a tour in the retrofitted original building and caves. Stop by the tasting room any day between 10 am – 5 pm.

In operation since 1904, Kunde Winery is currently run by 4th and 5th generations of the Kunde family. The original winery was located a few miles from the winery you see today. Still, the place is steeped in a deep knowledge and unique history. Tasting room open daily, 10:30 am – 4:30 pm.

Annadel Estate Winery was first established in 1880 by the Bolle family. The Bolle family home still stands. And the old stone walls of the original winery still grace the property. Purchased in 2007 and renovated over the past decade, this estate vineyard is a stunning example of Sonoma Valley history. Tasting is by appointment only.

We are thrilled to announce a new listing for Majestic Oaks Estate Winery in the Sonoma Valley AVA! View the listing: CLICK HERE