Wine Country Real Estate Trends – August 2015

Wine Country Group Results for August 2015:

 The Wine Country Group had 46 closings in August 2015 compared to 70 a year ago and 74 last month. In August, we closed homes with a total value of $30 million compared to $48 million a year ago and $47 million last month. The average selling price of the properties sold by the Wine Country Group in August was $650,674 compared to $682,315 a year ago and $635,514 last month. The Sonoma office led in August with 17 closings. The Sebastopol office had 11 and the Healdsburg office had 9 closings. The Sonoma office also led in dollar volume with $14.1 million in closings while the Sebastopol office had $6.5 million and the Healdsburg office had $5.3 million.

The Wine Country Group opened 66 new escrows for the month compared to 97 a year ago and 51 last month. The Group had 22 new listings compared to 31 in August 2014 and 21 last month. We currently have 62 pending sales with a value of $38 million dollars. We have 71 active listings with a value of $71 million dollars. Our average listing price is $996.000.  It certainly was a slower month in new sales and listings than it was a year ago.

 Wine Country Real Estate results for August 2015:

 Sonoma County:  The inventory of single-family homes and condominiums for sale in Sonoma County at the end of August continued to climb for the seventh straight month but was below last year’s levels.  It stood at 961 homes compared to 914 last month and 995 a year ago.  This is an 3.4% decrease on a year over year basis.  One can remember in the early part of the 2000’s, we routinely had 2,000 or more homes in inventory in Sonoma County.  New sales (525) in August were 4% ahead of that of last August (504) and were 5% below the pace of last month (554).  There is just a 1.8 months supply of inventory in Sonoma County based on the current sales pace.  The time it takes to sell a home in Sonoma County (Days on Market) is 59 days compared to 60 a year ago and 57 last month.  This 55 to 60 day period to sell a home has stabilized for now across most of Wine Country.  The median price of the 531 homes closed in August in Sonoma County was $508,000.  This is an 11% increase over the median price in August 2014 ($458,000). The current median price is 14% below the peak median price for the County ($589,000) recorded in August 2005.

Looking south to Marin County for some hints to the Wine Country market, the pace of sales declined 23% in August compared to July.   Sales were about equal to the pace of a year ago. Days on market there was 53 days in August and there is a 1.5 months supply of inventory.   The median price has increased 8% on a year over year basis – so maybe the appreciation rate is leveling out.

Sonoma County Luxury Homes:  About one quarter of the inventory in Sonoma County can be characterized as Luxury Homes (listing price in excess of $1,100,000). There has been a 32% increase in the number of Luxury Homes closed (403) from 9/1/14 to 8/31/15 compared to 305 from 9/1/13 to 8/31/14.  There were 250 luxury properties in inventory at the end of August compared to 246 last month and 215 a year ago.  Days on Market for the 47 Luxury Homes that closed in August was 94 days compared to 125 days a year ago.  There is a 5.6 months supply of Luxury Homes based on the current sales pace – this indicates a “balanced” market between buyers and sellers at this price point.

Coastal Sonoma:  The inventory of homes and condominiums for sale in Coastal Sonoma (Bodega Bay, Jenner and Stewart’s Point) at the end of August (35) was 8% below the inventory a year ago (38) and 6% ahead of the inventory last month (33).  There were 9 new homes sold in August that compares to 7 a year ago and 6 last month.  There is a 3.9 months supply of inventory based on the current sales pace compared to 5.4 months last year.  The Days on Market of the 6 homes that closed in August was 98 days compared to 84 days a year ago and 114 days last month.

Healdsburg Trends:   The inventory of homes and condominiums available in Healdsburg was stable in August after rising for six straight months.  Inventory stood at 75 homes at the end of the month.  This is 8.5% below the inventory last August (82) and slightly above the inventory of last month (71).  Sales also remained steady in August. There were 18 new sales in August compared to 17 last month and 14 in August 2014.  The months of available inventory based on the current sales pace is 4.2 months.  The Days on Market for the 18 homes closed in August was 69 days compared to 101 days a year ago and 63 days last month.

Petaluma:  The sales of homes in Petaluma fell 25% to 69 sales compared to 79 last month.  Sales had jumped 27% in July over the June pace so it’s a bit ragged there.  The sales pace was also 22% below the pace of sales in August 2014 (76).  The inventory of homes and condominiums for sale (87) at the end of August in Petaluma was 5% below the inventory in August 2014 (92) and it was 18% ahead of the inventory of last month (74). There is a 1.5 months supply of inventory based on the current sales pace.  The median price of the 69 homes that closed in August was $569,000.  This is 4% above the median last August ($549,000).  The Days on Market for the closed sales for the month was 49 compared to 56 days in August of last year.  Sales continue at a quick pace in Petaluma.

Rohnert Park and Cotati:  The sales of homes outpaced the addition of new listings in Rohnert Park and Cotati in August.  There were 59 new sales and there were just 39 homes and condominiums in inventory at the beginning of the month and 44 at the end of the month.  There is now just a 0.7 months supply of inventory based on this activity – this is the tightest market in all of Wine Country.  If you are thinking of selling a home in Rohnert Park or Cotati, it’s a good time to do it!   The 44 homes in inventory at the end of August was 23% below the 57 homes in inventory at the end of August 2014, and the 59 new sales was 31% ahead of the 45 new sales in August a year ago.  The Days on Market for the 56 homes that closed in Rohnert Park in August was 44 days compared to 47 days a year ago.  The median price for the homes sold in August ($400,000) was 3% ahead of the median price of the homes sold in August 2014 ($389,000).

Santa Rosa:  The inventory of homes and condominiums for sale in Santa Rosa at the end of August (329) rose for the seventh month in a row.  It was 4% ahead of the inventory of a year ago (317) and was 7.5% ahead of the inventory last month (306).  New sales have declined in Santa Rosa in each of the last four months.  Sales in August (211) were 4% below the pace of last month (220) and were 7% ahead of the pace in August 2014 (198). There is a 1.6 months supply of available homes in Santa Rosa based on the current sales pace. The median price of the 196 homes closed in August in Santa Rosa was $475,000 compared to $440,000 a year ago – an 8% increase.  The Days on Market for the homes closed in August in Santa Rosa was 59 days compared to 57 days a year ago.

Sebastopol Trends: The inventory reversed itself again in Sebastopol in August and fell almost 20% compared to July.  The inventory of homes and condominiums for sale (52) at the end of August was 13% ahead of last year (46) and was 19% below the inventory last month (64).  There were 31 new sales for the month of August compared to 20 last month (+55%) and 25 a year ago (+24%).  With this fall in inventory and jump in sales, the months supply of inventory fell back to 1.7 months based on the current sales pace.  The Days on Market of the 29 closed homes in Sebastopol in August was 65 days compared to 61 days a year ago and 70 days last month.

Sonoma Valley:  The number of available homes and condominiums for sale (124) in the Sonoma Valley (Sonoma, Glen Ellen and Kenwood) at the end of August was 13% ahead of the level of last August (110) and was roughly equal to the inventory last month (121). There were 50 new sales for the month.  This is 6% ahead of the pace of sales in August 2014 (47) and 14% below the pace of last month (58).  There is a 2.5 months supply of inventory in Sonoma based on the current pace of sales.  The Days on Market for the 60 closed sales in Sonoma in August was 60 days compared to 56 a year ago and 65 last month.  52% of the inventory in the Sonoma Valley is priced at $1,000,000 or above.  The high-end market was active in the Sonoma Valley in the past month.  The inventory of homes priced in excess of $2,500,000 rose to 33 from 17 a year ago.  Sales in this price range (4 in August) have remained relatively steady over the past twelve months.  For homes in this price range, there is an 8.3 months supply of inventory based on the current sales pace and inventory.

Windsor: The inventory of homes and condominiums for sale (63) in Windsor at the end of August jumped 40% from the inventory of 45 at the end of August 2014 and was 10.5% ahead of the inventory of homes last month (57).  New sales in August (33) were 18% ahead of the sales in August 2014 (28) and were essentially equal to the sales last month (32).  There is a 1.9 months supply of inventory in Windsor based on the current sales pace.  The median price of the 34 sales that closed in August in Windsor was $549,000.   This is 20% ahead of the median price of a year ago ($455,000).  This is a higher appreciation rate than most other Wine Country markets.  The Days on Market for the closed homes last month was 52 days compared to 34 a year ago and 51 last month.

Napa County: The inventory of homes and condominiums available for sale in Napa County in August (368) was 18% below the inventory in August 2014 (450) and equal to the inventory last month.  New sales tapered off slightly after rising for seven months in a row.  They totaled 146 homes and were 25% ahead of the pace last year (117) and 2% below the pace of last month (149).  There is a 2.5 months supply of inventory based on the current sales pace.  The Days on Market for the 119 homes closed in August was 62 days compared to 70 days a year ago and to 73 days last month.  The median price of homes closed in August in Napa County ($550,000) was 9% ahead of the median price of a year ago ($503,000).  The current median price is 18% below the peak median price for the County ($675,000) recorded in August 2006.

Napa County Luxury Homes:  If one takes the highest quartile (25%) of available inventory as the “Luxury Market”, the Luxury Market begins at $2,500,000 in Napa County at this time.  There has been a healthy increase in the number of Luxury Homes closed (54) from 9/1/14 to 8/31/15 compared to 45 from 9/1/13 to 8/31/14.  There were 91 luxury homes in inventory at the end of August 2015 compared to 80 at the end of August 2014.  There is a 22 months supply of available Luxury Homes based on the current sales pace compared to 13 months supply last year in August.

Napa:  There were 205 available homes and condominiums in inventory at the end of August in the City of Napa.  This is 19% below the inventory a year ago (252) and it is equal to the supply last month (204).  New sales (101) were 30% ahead of the pace of August 2014 (78) and they were slightly below the pace of last month (104).  There is a 2 months supply of inventory based on the current sales pace compared to a 3.2 months supply a year ago.  The Days on Market for the 82 homes closed in August in the City of Napa was 56 days compared to 58 days in August 2014 and 60 days last month.  The median price of the homes that closed in Napa in August was $549,000.  This is 10% ahead of the median price in August 2014 ($498,000).  The median price in August is 16% below the peak median price in the City of Napa ($650,000) recorded in August 2006.

Up Valley Napa County:  The inventory of homes and condominiums for sale (118) in the Up Valley Napa County market (Angwin, Calistoga, Deer Park, Oakville, Rutherford, St. Helena and Yountville) was 19% below the level of 146 in August 2014 and it was slightly above the level last month (114).  There were 25 new sales for the month.  This is 17% below the 30 sales a year ago and 47% ahead of the 17 sales last month.  There is a 4.3 months supply of inventory compared to 5.2 months a year ago.  The Days on Market for the 18 closings in August was 107 days compared to 100 days in August 2014 and 133 days last month.  There is a longer selling cycle Up Valley than in much of Wine Country.

Closings: The following agents enjoyed closings for the period from August 1, 2015 to August 31, 2015:

In our Bodega Bay office, Barbara and Paul Cronick enjoyed a closing.

In our Healdsburg office: Mike Downes enjoyed three closings and   Diane Harris, Gina Cleaver, Linda Farwell, Hank Lane and Samantha Marquis each had a closing.

In our Napa office: Milanda Capp and Ana Jauregui each enjoyed a closing.

In our Petaluma office: Paul Claeyssens and Barry Adamson each had a closing.

In our Santa Rosa office: Sarah Carlson, Lori Allen and Katrina Beaudin each had a closing.

In our Sebastopol office: Liz Uribe enjoyed four closings; Bette Meritt had three closings and Rikki Barron, William Cole, Parmeeta Ghoman, Sandra Matthews and Laurie Parris each had a closing.

In our Sonoma office: Sheila Deignan enjoyed three closings; Erin George and Tiffany Knef had two closings and Diane Krause, Dan Gallagher, Herb Heil, Mari Johnson, Mara Kahn, Carl MacPetrie, Leo Merle, Tracy Reynes, Erick Rothfeld, Oak Senvardarli and Diane Litchfield each had a closing.

And, in our St. Helena office: Linda Alioto and Liz Manfree enjoyed one closing each.

Congratulations to all