The trend continues in our region with increased supply being met with an equal if not greater boost in demand – a healthy sign for our markets when both metrics move cohesively.
According to BAREIS MLS, Sonoma County had exactly 1013 single-family homes left for sale as May closed the ledger on available inventory – 36 percent more than a year earlier and indicating a resumption to normal historical trends for this time of year. Sellers delivered 467 new offerings to market during the period – 18 percent less than last year when the month recorded the arrival of 571 new listings. Sonoma County witnessed 496 properties receiving accepted offers in May – 20 percent greater than last year confirming buyers are taking advantage of interest rates and selective new offerings - while sellers successfully traded 417 dwellings during the month at a median value of $665,000.
The continued pace of the markets can be measured by the months’ supply of inventory (MSI) and, with renewed vigor from buyers in our region to compliment the reprieve in mortgage terms along with sellers being more in line with market sentiments, the data points to a tightening MSI of 2.4 – reversing last Fall’s corrective course.
MSI is the metric that indicates the number of months it would take to sell the current inventory at the current rate of sales. An MSI ranging from 4.0 to 6.0 is generally indicative of a balanced market, with lower numbers increasingly favoring sellers and vice versa
Getting down to the details in the town of Sonoma, which submarket includes the hamlets of Kenwood and Glen Ellen, there were 157 homes reported for sale as May concluded. This region experienced the addition of 40 new properties during the period – 25 percent fewer than the prior year. Sonoma buyers moved forward on contracting with sellers on 46 new deals while another 31 homeowners were given keys to their new dwellings at a median value of $950,000. The dynamics within this market have shifted now that supply has climbed to register a balance reading of 5.1 for the MSI.
Similarly, as May’s data filled in the charts, Healdsburg buyers placed 16 dwellings into contract while leaving 112 properties to greet home seekers in June – newly listed units on the market accounted for 21 of these. This submarket formally transferred new deeds on another 21 single-family homes, at a median value of $1,170,000, thereby stabilizing the MSI at 5.3 – maintaining a balanced market condition much like most of the last 12 months.
A much different story is afoot in the South County where residents of Petaluma’s Westside saw availability remain steady from a year earlier as the population of homes for sale stood at 46 by months end. Sellers introduced just 20 new offerings to the market during the period – 26 percent less than were presented in 2018 - while buyers managed to place contracts on 25 existing properties. Altogether, the sale of 30 abodes at a median price of $973,000 pushed the markets back under seller control with MSI tracking further lower to 1.5.
The tightest market in Sonoma County - Petaluma’s Eastside - closed out the month with 36 available homes to select from, inclusive of the 30 homes that debuted during the period. Home shoppers gained