Wine Country Real Estate Trends in June 2017 and for the 1st Half of 2017
Better Homes and Gardens Real Estate|Wine Country Group Results for June 2017
Better Homes and Gardens Real Estate|Wine Country Group had 58 closings in June 2017 compared to 48 last month. In June, we closed homes with a total value of $32 million compared to $30 last month. The average selling price of the properties sold by the Wine Country Group in June was $553,224.
BHGRE|WCG currently has 66 pending sales with a value of $41 million dollars. We have 66 active listings with a value of $97 million dollars. Our average listing price is $1,470,000.
Wine Country Real Estate Results for June 2017:
Sonoma County: The inventory of homes and condominiums available in Sonoma County rose to 879 and is up 14% from the inventory last month (774). It is 7% below the inventory in June 2016 (945). Inventory typically peaks for the spring season at the end of June and declines for the balance of the year. We’ll see if this pattern continues this year. New sales (537) in June were about equal to the pace of last month (530) and were also about equal to the pace of June 2016 (524). Sales also typically peak in June and decline through the balance of the year. As with listings, we’ll see if this pattern holds up for this year. There is a 1.6 months supply of inventory in Sonoma County based on the existing sales pace. The time it takes to sell a home in the various areas of Sonoma County (Days on Market) varies from 31 (Sebastopol) to 118 (Coastal Sonoma) days. For the purpose of our MLS (BAREIS) “Days on Market” represents the time from when the property is first listed in the MLS to the date the property goes into “pending” (all conditions removed) status. On average, it can take anywhere from 0 to 30 additional days for properties to close after going pending. The average Days on Market for the County as a whole is 51 days. The median price of homes closed in June in Sonoma County was $607,000. This is a 7% increase over the median price in June 2016 ($565,000). The current median price of homes closed in June is 3% above the peak median price for the County ($589,000) recorded in June 2005.
Sonoma County – 1st half of 2017: There were 1,624 homes and condominiums closed in Sonoma County in the first half of 2017. This is 5% fewer homes closed than in the first half of 2016 (2,413). The total value of the homes and condominiums closed in the first half of 2017 in Sonoma County was $1.624 billion dollars. This compares to $1.567 billion dollars in the first half of 2016 – a 4% increase. The average price of homes and condominiums closed in the first half of 2017 ($710,853) was 9% higher than the average for the first half of 2016 ($649,482).
Sonoma County Luxury Homes: About one quarter of the inventory in Sonoma County can be characterized as Luxury Homes (listing price in excess of $1,500,000). There has been a 20% increase in the number of Luxury Homes closed (219) from 7/1/16 to 6/30/17 compared to 182 from 7/1/15 to 6/30/16. The pace of new sales (26) in June this year was equal to the pace of a year ago (25). There were 216 luxury properties in inventory at the end of June compared to 205 last month and 202 a year ago. The Days on Market for Luxury Home closings was 90 days this June compared to 48 days a year ago. This compares to 51 Days on Market for all closed properties in the County in June. There is a 8.3 months supply of inventory of luxury properties based upon the current sales pace compared to a 1.6 months supply in the overall Sonoma County market. On a statistical basis, it continues to be a “Buyers Market” in the high end.
Cloverdale: The inventory of homes and condominiums for sale (24) in Cloverdale at the end of June was 27% below the 33 homes in inventory in June 2016 and it was 33% ahead of the 18 homes last month. There were 16 new sales in Cloverdale in June. This compares to 12 sales in June 2016 and 16 new sales last month. There is a 1.5 months supply of inventory based on the current sales pace.
Coastal Sonoma: The inventory of homes and condominiums for sale in Coastal Sonoma (Bodega Bay, Jenner and Stewart’s Point) at the end of June (28) was about equal to the inventory a year ago (29) and it was 10% below the inventory last month (31). There were 10 new home sales for the month of June compared to 3 a year ago and 5 last month. Ten sales in a month is a big number for Coastal Sonoma. This is the buying season along the coast. There is only a 2.8 months supply of inventory in Coastal Sonoma based on the current sales pace, but there should be fewer sales in the coming months.
Healdsburg Trends: There were 96 homes and condominiums available for sale in Healdsburg at the end of the month. This is 14% ahead of the inventory in June 2016 (84) and is 4% below the inventory last month (100). There were 22 new sales in Healdsburg for the month. This is equal to the number of sales in June 2016 and it is slightly ahead of the pace last month (20). The months of available inventory is 4.4 months based on the current sales pace.
Oakmont: There were 13 homes in inventory in the community of Oakmont at the end of June. This is 19% lower than in June 2016 (16) and it is slightly below the inventory last month (15). There were 17 new sales for the month. This is 21% ahead of the sales pace of a year ago (14) and 19% below the pace of last month (21). There is a 0.8 months supply of inventory based on the current sales pace. The community clearly needs inventory. The median price for homes sold in Oakmont in the past year has ranged from the mid-$500,000’s up to $675,000. The median price was $589,000 for the 15 closings last month.
Petaluma: The inventory of homes and condominiums for sale in Petaluma at the end of June (67) is 11% below the inventory in June 2016 (75) and it is 10% ahead of the inventory last month (61). There were 68 new sales for the month. This is 8% ahead of the number of new sales in June 2016 (63) and is 4% below the 71 sales last month. The Petaluma market has been volatile and currently has one months of available inventory based on the current sales pace. The median price of the 75 homes that closed in June was $703,000. This is 13% ahead of the median last June ($623,000).
Rohnert Park and Cotati: For the eighth consecutive month, the monthly sales in Rohnert Park-Cotati outpaced the level of inventory at the beginning and end of the month. Mathematically, one would believe that this can’t continue for long. There were 50 new sales in June compared to 48 last month and 52 in June 2016. Inventory began the month at 26 homes and ended the month at 37 homes. There is just a 0.7 months supply of inventory based on the current sales pace. The median price ($518,000) of the 42 homes closed in June was 13% higher than the median price a year ago ($460,000). $542,000 is the highest median price ever posted in Rohnert Park/Cotati. In June 2011, the median price was $233,000.
Santa Rosa: The inventory of homes and condominiums for sale in Santa Rosa at the end of June (268) was 17% below the inventory of a year ago (324) and was 20% ahead of the inventory last month (223). New sales in June (213) were about equal to the pace of last June (218) and they were 11% below the pace last month (240). There is only a 1.3 months supply of available homes in Santa Rosa based on the current sales pace. The median price of the 208 homes closed in June in Santa Rosa was $550,000 compared to $510,000 a year ago – an 8% increase. The median has ranged from $475,000 to $550,000 over the past twelve months.
Sebastopol Trends: The inventory of homes and condominiums for sale at the end of June (52) in Sebastopol was 13% ahead of the level of June 2016 (46) and it was 8% higher than the inventory last month (48). There were 25 new sales for the month of June. This is slightly below the pace in June 2016 (27) and about equal to the pace last month (26). There is a 2.1 months supply of inventory in Sebastopol based on the current sales pace. Sebastopol had the shortest “Days on Market” for any area in Wine Country last month. The 23 homes that closed went from listing to pending in just 31 days.
Sonoma Valley: The number of available homes and condominiums for sale (132) at the end of June in the Sonoma Valley (Sonoma, Glen Ellen and Kenwood) was 6% below the inventory in June 2016 (141) and it was 10% ahead of the inventory of last month (120). There were 48 new sales for the month. This is 14% ahead of the pace of sales in June 2016 (42) and it is 30% ahead of the pace of last month (37). There is a 2.8 months supply of inventory in Sonoma based on the current pace of sales. 64% of the inventory in the Sonoma Valley is priced at $1,000,000 or above while 35% of the new sales (17) were priced at $1,000,000 or more. The high-end quartile (top 25%) of inventory in the Sonoma Valley at the end of June started at $2,900,000 last month (up from $2,700,000 in May). 16 homes closed in the top quartile in the past twelve months compared to 16 in the twelve months prior to that. There were 33 homes available in this quartile in June compared to 25 a year ago. There was one new sale in the top quartile in June. Based on just one sale, there is a 33 months supply of inventory in the top quartile. I expect that more than one home will sell in this price range next month, so this should change.
Windsor: Sales in Windsor in June were the highest that they have been in the past 15 months. There were 37 new sales for the month. This is 16% ahead of the pace of sales in June 2016 (32) and it is 19% ahead of the pace of last month (31). The inventory of homes and condominiums for sale in Windsor at the end of June (36) is 16% below the inventory in June 2016 (35) and it is 5% below the 38 homes last month. There is a one months supply of inventory based on the current sales pace. The days on market for the homes closed in June in Windsor was just 42 days.
Napa County: The inventory of homes and condominiums available for sale in Napa County at the end of June (346) is 7% below the inventory in June 2016 (373) and it is 8.5% higher than the inventory last month (319). New sales (152) were 2% ahead of the pace last year (149) and 6% ahead of the pace of last month (144). There is a 2.3 months supply of inventory based on the current sales pace. The Days on Market for homes closing in Napa County is currently 69 days. For the purpose of our MLS (BAREIS) “Days on Market” represents the time from when the property is first listed in the MLS to the date the property goes into “pending” (all conditions removed) status. On average, it can take anywhere from 0 to 30 additional days for properties to close after going pending. The median price of the 142 homes closed in June in Napa County ($645,000) was 7.5% ahead of the median price of a year ago ($600,000). The median has generally ranged between $580,000 and $660,000 over the past year. The current median price remains just 2% below the peak median price for the County ($675,000) recorded in June 2006 so, as in Sonoma County and south through Marin into San Francisco and the Peninsula, the home equity lost in the great financial crisis (2007 to 2011) has been regained.
Napa County – 1st half of 2017: There were 670 homes and condominiums closed in Napa County in the first half of 2017. This is 2% more homes closed than in the first half of 2016 (657). The total value of the homes and condominiums closed in the first half of 2017 in Napa County was $584 million dollars. This compares to $573,091 million dollars in the first half of 2016 – a 2% increase. The average price of homes and condominiums closed in the first half of 2017 ($872,103) was essentially equal to the average for the first half of 2016 ($872,284). So, the market in Napa County seems to have stabilized at the macro level.
Napa County Luxury Homes: If one takes the highest quartile (25%) of available inventory as the “Luxury Market”, the Luxury Market begins at $2,400,000 in Napa County at this time. Last month, the top quartile started at $2,200,000. The number of closings (58) of Luxury Homes (sales price in excess of $2,400,000) in Napa County is about equal for the period 7/1/16 to 6/30/17 compared to 7/1/16 to 6/30/17 (57 homes). There were 84 luxury homes in inventory at the end of June 2017 compared to 88 at the end of June 2016. There were 4 Luxury Home new sales last month resulting in a 21 months supply of available Luxury Homes based on the current sales pace compared to 2.3 months supply for the County as a whole.
Napa: There were 178 available homes and condominiums in inventory at the end of June in the City of Napa. This is 11% lower than the inventory a year ago (199) and it is slightly higher than the supply last month (172). New sales (107) were 8% ahead of the pace of June 2016 (99) and they were 9% ahead of the pace of last month (98). There is a 1.7 months supply of inventory based on the current sales pace. The median price of the 99 homes that closed in Napa in June was $650,000. This is 5% above the median price of the homes closed in June 2016 ($618,000). The median price is equal to the peak median price in the City of Napa ($650,000) recorded in June 2006.
Up Valley Napa County: The inventory of homes and condominiums for sale in the Up Valley Napa County market (Angwin, Calistoga, Deer Park, Oakville, Rutherford, St. Helena and Yountville) at the end of June (117) was 16% below the level of 139 in June 2016 and it was 22% ahead of the level last month (96). There were 20 new sales for the month compared to 27 a year ago and 27 last month. There is now a 5.9 months supply of inventory based on the current sales pace. The Days on Market for the 18 closings last month was 105 days. Approximately 65% of the Luxury Market (price in excess of $2,400,000) inventory in Napa County is in the Up Valley Market (55 homes).