Wine Country Real Estate Trends in May 2013
Company Values –
Commitment – The first of the four company values is commitment. I liken commitment to “high expectations” and “courage”. If we have high expectations of ourselves, and of our colleagues, it is a commitment. If we have the courage to confront our clients, our co-operating agents and others – it’s a commitment.
There are a couple of quotes that I’d like to share in this post. This one is to our agent Leo Merle from his seller client: “I’m happy because the funds are being wired, but sad because that means our dealings with you are over. It has been the best possible experience for us with you as our Realtor. You’re a consummate professional and a great human being with a marvelous sense of humor”. Sounds to me as if Leo has commitment.
And this from our agent Carl MacPetrie: “A good Realtor is an ambassador, making introductions between parties and smoothing a path beneficial to all concerned”. Smoothing a path… that takes commitment too.
Next post: Accountability
Wine Country Group Results for April 2013
The Wine Country Group had 100 closings this April compared to 72 in April 2012 and 75 last month. Our dollar volume was $46.4 million compared to $43.1 million last year. This is the highest number of units closed in any April since 1999, and it was higher dollar volume than any Aprils excepting 2004 and 2005. Our Sebastopol office led with 28 closings in April while the Healdsburg office had 24. The Sebastopol office also led in dollar volume with $15.3 million in closings while the Healdsburg office had $12.0 million. Our Wine Country average closing sales price was a surprisingly low $464,097 comparing to $690,205 a year ago and $518,420 last month. Our escrow openings totaled 107 units compared to 72 in April 2012. We had 53 new listings compared to 36 a year ago.
The Wine Country Group currently has 115 pending sales with a value of $87 million dollars. We have 131 active listings with a value of $114 million dollars. Our average listing price is $868,000 – compared to an average of $798,000 a year ago.
The Wine Country Group currently enjoys number one market share (in either (or both) units and dollar volume) in our Cloverdale, Sebastopol and Healdsburg markets.
Wine Country Market – April 2013
Sonoma County: For the third month in a row Sonoma County had an increase in inventory on a month over month basis – and this time it was a larger (17%) jump over last month. Inventory was 747 units at the end of April compared to 638 units at the end of March. Inventory remains 25% below the inventory of April 2013 (990) but this is the closest that inventory has been on a year over year basis since April of 2010. New listings for the month were 664 compared to 581 last month and 570 a year ago. So, we may be reaching a point where the pricing is attractive enough for “equity” sellers (non-distressed property owners) to put their homes on the market.
New sales in April (602) were 13% lower than last year (690) and about equal to that of last month (616). There is a just a 1.2 months supply of inventory based on the existing sales pace – still a stressed market. Properties are selling faster than they have in many years. Homes that sold in April 2013 were on the market an average of 77 days compared to 100 days on market a year ago. We had the experience of a home that we listed in Sonoma coming on the market and closing within ten days. This is the lowest period for Days on Market for Sonoma County since June 2006. With this velocity has come a surge in median price. The median price of homes closed in April in Sonoma County ($402,000) was 26% ahead of the median price of a year ago ($320,000). Part of this increase results from the closing of 22 homes over the price of $1.5 million this April compared to 15 homes over $1.5M a year ago. The low median price in recent years was $292,000 in February 2011. The market has rebounded 38% since that low.
Distressed properties (foreclosures and short sales) currently make up 10% of the inventory and 18% of the new sales – this continues to trend down month over month. One year ago, the distressed property inventory represented 22% of the overall inventory and distressed sales represented 46% of all new sales. There is 0.7 months supply of inventory of distressed properties based on the current sales pace. The median price of the 114 distressed properties that sold in the month of April ($277,000) was 6.5% higher than April a year ago ($260,000) so the overall increase in median value is coming from the “equity”, broader side of the market at this time.
Cloverdale Trends: The inventory of homes and condominiums for sale in Cloverdale (26) at the end of April 2013 was 33% below that of a year ago (39) and was generally consistent over the last five months. Sales for the month of April (26) were 37% higher than the sales a year ago (19) and 37% higher than the sales reported last month (also 19). There is a one months supply of available inventory in Cloverdale based on the current pace of new sales. 23% of the inventory is distressed properties (bank-owned, short sale or foreclosure), 27% of the new sales and 23% of the closings for the month are distressed properties.
Coastal Sonoma: The inventory of homes and condominiums for sale in Coastal Sonoma (Bodega Bay, Jenner and Stewart’s Point) at the end of April 2013 (26) was equal to that of a year ago (26) and was generally consistent over the last seven months. Sales for the month of April (7) were higher than the sales a year ago (5) and were equal to the pace over the last four months. There were more closings in the month of April along the coast (10) than in any month since August 2011. There is a 3.7 months supply of available inventory in the Coastal Sonoma market based on the current pace of new sales. This market is not experiencing the same increase in “velocity” that we are seeing in the broader market. 12% of the inventory is distressed properties (bank-owned, short sale or foreclosure), 29% of the new sales and 50% of the closings for the month are distressed properties, so perhaps investors are looking at the coast for opportunities at this time.
Healdsburg Trends: The inventory of homes and condominiums for sale (56) in Healdsburg at the end of April was down 22% from that of last year (72) and it was about equal to that of the last five months. This continues to be a very low inventory for the Healdsburg market – but it may be the new normal there. New sales (21) were up two from the 19 new sales in April 2012 and were down 28% from the 29 sales last month. Sales have been fairly stable in the 20’s to 30’s per month over the past fifteen months. The months of available inventory based on the current sales pace is 2.7 months – an improvement in balance over last month. The “Days on Market” for the 27 homes that closed in April was only 68 days compared to a more typical number of 90 to 100 days for that market. It is the lowest DOM since April 2011. Only 3% of the inventory (2 homes) in Healdsburg consists of “distressed properties” (bank-owned, short sale or foreclosure), and none of the new sales in the month were distressed properties. Healdsburg is essentially out of distressed properties at this time.
Petaluma: The inventory of homes and condominiums for sale (71) in Petaluma at the end of April was 24% lower than a year ago (93) and it was 18% ahead of the supply last month (60). New sales in April (64) were 10% below the pace in April 2012 (71) and they were equal to the pace of last month (63). There is a 1.1 months supply of inventory based on the current sales pace. The median price of the 55 closed homes in Petaluma in April ($450,000) was up 29% from the median closing price in April 2012 ($350,000). Distressed properties (bank-owned, short sale or foreclosure) make up 15% of the available inventory, 16% of new sales and 15% of closings for the month.
Santa Rosa: The inventory of homes and condominiums for sale (200) in Santa Rosa at the end of April was 37.5% lower than the inventory a year ago (320) but it was up for the second month in a row (184 last month). There were 250 new listings for the month compared to 218 last April. At least new listings and new sales were about equal for the month. New sales in April (253) were 16% below the pace in April 2012 (300) and were 5% lower than the pace last month (266). There is only a 0.8 months supply of available homes based on the current sales pace. As with the County, the time it takes a home to sell and close is only 72 days – the fastest since December 2005. The median price of the 200 homes closed in April in Santa Rosa was $375,000 compared to $281,000 a year ago – a 33% increase. Distressed properties (bank-owned, short sale or foreclosure) make up just 6.5% of the available inventory, 20% of new sales and 21% of closings for the month. This compares to 25% of inventory, 50% of new sales and 48% of closings a year ago. There is a 0.3 months supply of distressed properties available.
Sebastopol Trends: The inventory of homes and condominiums for sale (60) in Sebastopol at the end of April was 16% lower than that of April 2012 (71) and it was 10% ahead of that of last month (54). There were 44 new sales for the month of April. This is 16% higher than the new sales in April 2012 (38) and 29% ahead of the 34 sales last month. There is a 1.4 months supply of inventory based on the current sales pace. There are only four distressed properties (bank-owned, short sale or foreclosure) available in Sebastopol. There were nine distressed sales and four distressed closings. This market is essentially out of distressed properties at the current time. If they come on the market, they sell right away.
Sonoma Valley: There were 122 available homes in inventory at the end of April in the Sonoma Valley (Sonoma, Glen Ellen and Kenwood) an increase for the fourth month in a row. The inventory is just 11% lower than the inventory a year ago (137) and 23% ahead of the inventory last month (99). There were 73 new sales for the month. This is 18% higher than the pace in April 2012 (63) and 40% higher than last month (52). It’s a big jump in sales for the month – something that we experienced in May of last year. We’ll see if that trend holds. Days on market dropped to 60 in April – the lowest since September 2005. There is a 1.7 months supply of inventory based on the current sales pace. Distressed properties (foreclosures and short sales) represent only 7% of the inventory, 5% of the new sales and 11% of the closings for the month. Distressed sales are having less than half of the impact that they were having on our market a year ago.
Windsor: The inventory of homes and condominiums for sale (30) in Windsor at the end of April bounced back from the record low of 14 at the end of March. Inventory is now just 12% lower than a year ago (34). New sales in April (32) were 41% lower than the pace in April 2012 (54) and they were 22% lower than the pace of last month (41). There is a 0.9 months supply of inventory based on the current sales pace. Distressed properties (bank-owned, short sale or foreclosure) make up 23% of the available inventory, 41% of new sales and 27% of closings for the month. Last year in April, distressed closings were 55% of all closings – so this market is markedly decreased in Windsor at this time.
Napa County: The available number of units in Napa County (332) continued to rise slowly for the second month in a row. The inventory is 28% lower than it was in April 2012 (464) and 10% higher than last month (301). New sales (183) were equal to that of last year and were about equal to the pace of last month (179). There is a 1.8 months supply of inventory based on the existing sales pace. New listings for the month (207) were 20% higher than the pace in April 2012 (173). As in the broader Wine Country market, homes are selling faster (80 days on market) – the fastest pace since May 2006. The median price of homes closed in April in Napa County ($457,000) was 31% ahead of the median price of a year ago ($348,000). Looking at sales in excess of $1.5 million in Napa County for the first four months of the year there were 30 in 2013 and 22 in 2012. In April 2013 there were 13 compared to 7 in April 2012. So the sale of higher priced homes is pulling up the overall median.
Distressed properties (foreclosures and short sales) currently make up only 4% of the inventory in Napa County. Currently there are 14 distressed properties in inventory compared to 71 a year ago – an 80% decrease. Distressed properties make up 25% of the new sales and 23% of the closings. There is 0.3 months supply of inventory of distressed properties based on the current sales pace. The median price of 31 distressed properties that sold in the month of April ($326,000) was 16% higher than January a year ago ($282,000).
Napa: There were 178 available homes in inventory at the end of April in the City of Napa. Like the County, this is a continuation of the improvement in inventory for the second straight month. The inventory is 32% lower than the inventory a year ago (260) and 14% ahead of the inventory last month (156). There were 115 new sales for the month about the same as last month (117). The sales pace is 4.5% ahead of the sales in April 2012 (110). There is a 1.5 months supply of inventory based on the current sales pace. Days on market fell to 76 compared to 96 a year ago. The median price of the 81 homes sold in the City of Napa in April ($459,000) was 35% higher than the median price in April 2012 ($340,000). Distressed properties (foreclosures and short sales) represent 5% of the inventory, 15% of the new sales for the month and 20% of the closings for the month. Distressed sales are having about half of the impact in the City of Napa that they had a year ago.
Up Valley: There were 129 available homes in inventory at the end of April in the Up Valley Napa County market (Angwin, Calistoga, Deer Park, Oakville, Rutherford, St. Helena and Yountville). This is 13% lower than the inventory a year ago (149) but 10% higher than the inventory last month (117). There were 54 new listings for the month compared to 38 in April of last year. This is positive for the Up Valley market. There were 34 new sales for the month, the highest rate since last April (33). It is up slightly from the number of new sales last month (30). There is a 3.8 months supply of inventory based on the current sales pace. Even at 107 days on market, the closings were fast by Up Valley standards. There is just one distressed property (foreclosures and short sales) currently on the market in Up Valley – so that market is gone!
Closings: The following agents enjoyed closings for the period from April 1 to April, 2013:
In our Cloverdale office, Ron and Jane Pavelka had one closing.
In our Healdsburg office: Debbie Adler enjoyed five closings; Susan Montgomery , Bernie Curley, Diane Harris and Linda Farwell each had two closings; and Debby Hendershot, Tom Lawrence, Patty Van Deren, Elissa Morrash and Gina Cleaver each had a closing.
In our Napa office: Cynthia Parker and Melody Patton-Arevalo each had two closings, and Nick Simon, Shawn Daee, Stacey Oftedal and Tressa Anderson each had a closing.
In our Petaluma office: Ryan Styles enjoyed two closings and Jaime Cook had a closing.
In our Santa Rosa offices: Larry Tristano enjoyed three closings; Tommy Apostolides, David Poulsen, John Styles, Jim Famini and and Lindsey Ehrlicher had two closings each; and Bonnie Falconer, Gus Kyriakos and Charles Himes each had a closing.
In our Sebastopol office: The Team of Doug Schaeffer and Cary Fargo, the team of Will Brown and Gene Bonino, Pauline and Michael Pellini, Lisa Dawson, and Jeffrey Seligson each enjoyed three closings; Liz Uribe, Rita De Souza and Laurie Parris had two closings; and Barbara and Paul Cronick, Allison Pharis, Roger Strawbridge, William Kent, Chris Nelson, Richard Petersen and Owen Boom each had a closing.
In our Sonoma office: Mike Caselli, Herb Heil, Leo Merle, Mari Johnson and Erick Rothfeld enjoyed two closings each; and Shanis Nelson, Tish Thames, Diane Krause, Diana Tate and Sheila Deignan each had a closing.
And, in our St. Helena office: Liz Manfree had a Wine Country Group high six closings and Linda Alioto had two closings for this period.
Congratulations to all!