Core Values

Those that know me know that I believe in a values-based organization.  Last year, I reviewed the core values of our parent company, Better Homes and Gardens Real Estate, Mason-McDuffie.  In the next couple of months, I’d like to review the “Core Values” of our franchise group – Better Homes and Gardens Real Estate.  They are:

Passion

Authenticity

Innovation

Growth

Excellence

The final core value is Excellence.  In choosing “Excellence” we acknowledge that we will distinguish ourselves by exceeding expectations. We respond immediately and appropriately. We attract the best talent and we deliver meaningful results to our clients.

Wine Country Real Estate Trends in July 2014

Wine Country Group Results for the first half of 2014 (Jan-Jun):

The Wine Country Group had 23% fewer closed sales (347) in the first six months of 2014 compared to the same period last year (449), but the dollar volume ($230 million) was about the same as last year ($234 million).  Even though sales activity is down, the 27% increase in the average sales price (from $521,000 to $662,000) of homes closed by the Wine Country Group for this period helped it to be a solid performance.  The Sonoma and Santa Rosa offices each had 68 closings in the first six months and the Napa office had 48 – a nice jump from the 30 that they had in the first six months of 2013.  The Sonoma office led in dollar volume with $60 million dollars in sales.  The Santa Rosa office had $45 million and the Napa office had $37 million.  The Group opened 446 new escrows and had 224 new listings in the first half of 2014.

Wine Country Group Results for July 2014:

The Wine Country Group had about the same number of closings in June 2014 as we did in June 2013 but our dollar volume was 41% ahead.  In June, we closed 71 homes with a total value of $56.6 million compared to 74 homes and $40.2 million a year ago in June.  Dollar volume was also 30% of the level last month ($43.6 million).  The Santa Rosa office led this month with 17 closings while the Napa office had 14 and Sonoma office had 12 closings.  The Santa Rosa office also led in dollar volume with $20.6 million in sales while the Sonoma office had $9.4 million and the Napa office had $8.5 million.

The Wine Country Group opened 75 new escrows for the month compared to 109 a year ago and 106 last month.  The group had 40 new listings compared to 44 in June 2013 and 40 last month.  We currently have 96 pending sales with a value of $70 million dollars.  We have 135 active listings with a value of $146 million dollars. Our average listing price is $1,084,000 – up 25% from an average of $867,000 a year ago.

Wine Country Real Estate results for the first half or 2014 (Jan-Jun):

The number of closed sales in the first half of 2014 fell 12% across all of Wine Country (Napa and Sonoma Counties).  In 2014 there were 3,090 closings compared to 3,498 in the first half of 2013.  The main factor for the decline appears to be the significant decrease in the number of distressed sales (REO and short sales) year over year.  For the first half of 2013, distressed sales accounted for 25% of all sales.  In 2014, it was just 8%.  Looking at it in another way, the number of “conventional” closings in the period increased from 2,637 in 2013 to 2,822 in 2014 – a 7% increase and a healthy sign for the market.

One reason sales may be dragging a bit is the influence of mortgage interest rates.  Most homeowners who have not sold over the past several years have likely refinanced and have a rate lower than today’s offerings.  As a colleague says:  “Homeowners are in love with their mortgage more than their homes”.  An increase in one’s mortgage rate from 3% to 4% is a 33% increase.   Homeowners are having second thoughts about that even though 4% is in a historical low range.

Another healthy segment of the market is Luxury Homes (asking price in excess of $900,000).   For the first six months of 2014, the number of new Luxury Homes sales in Wine Country increased by 26%.  They increased from 334 homes a year ago to 422 homes this year.

Wine Country Real Estate results for June 2014:

Sonoma County: The inventory of single-family homes and condominiums for sale in Sonoma County at the end of June stood at 958 compared to 911 last month and 822 a year ago.  This is a 5.2% increase month over month and a 16.5% increase year over year.  It is the highest level of homes available for sale since August of 2012.  New sales (581) in June were 17.6% ahead of that of last June (494) and were 5.4% ahead of last month (551).  This is the highest level of new sales for any month in two years.  Inventory has increased 67% and new sales have increased 111% since December. There is just 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 Sonoma County (Days on Market) is 55 days compared to 63 a year ago.  This is the lowest Days on Market since September 2005.  The median price of homes closed in June in Sonoma County was $467,000.  This is a 11% increase over the median price in June 2013 ($420,000).   The current median price is still 21% below the peak median price for the County ($589,000) recorded in June 2005.

Sonoma County Luxury Homes: Sales of Luxury Homes (sales price in excess of $900,000) in Sonoma County have enjoyed a strong growth in the last twelve months.  There was a 20% increase in the number of new sales (54) in June 2014 compared to June 2013 (45).  There has been a 36% increase in the number of Luxury Homes closed (461) from 7/1/13 to 6/30/14 compared to 340 from 7/1/12 to 6/30/13.  The inventory of Luxury Homes in Sonoma County also continued to rise slightly last month.  There were 266 properties at the end of June compared to 261 last month and also 261 a year ago.  Days on Market for closed Luxury sales dropped from 100 days last year to 82 days this year.

Cloverdale Trends: The inventory of homes and condominiums for sale in Cloverdale (46) at the end of June 2014 was 18% ahead of that of a year ago (39) and was equal to the inventory last month (45).  New sales for the month of June (16) rose 46% from the 11 sales last month and were also 46% ahead of the pace of last June (11).  There is a 2.9 months supply of available inventory in Cloverdale based on the current pace of new sales.  Days on Market for the ten homes that closed in June was only 37 days compared to 55 days for the County as a whole.

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 (38) jumped ahead 36% from that of last month (28) and was 12% ahead of the inventory a year ago (34).  There were only 4 new home sales for the month of June compared to 8 a year ago and 8 last month. There is a 9.5 months supply of available inventory in the Coastal Sonoma market based on the current pace of new sales. The Days on Market of the 4 homes that closed in June dropped to 45 days compared to 83 days a year ago and 144 days last month.

Healdsburg Trends: With the solid increase in inventory in Healdsburg in May, we saw a logical increase in new sales in June.  There were 30 new sales for the month.  This is 25% ahead of the pace in May (24) and 30% ahead of the pace in June 2013 (23).  This was the highest number of sales in any month in Healdsburg since July of 2005 when there were also 30 new sales.  There were 71 homes and condominiums available at the end of June compared to 67 last June and 78 in May.  The months of available inventory based on the current sales pace fell to 2.4 months.   The Days on Market for the 23 homes closed in June was just 46 days compared to 75 days a year ago.

Petaluma: The inventory of homes and condominiums for sale (78) in Petaluma at the end of June was the same as last month and it was slightly ahead of the pace in June 2013 (75).  New sales in June (58) were 16% behind the pace of last month (69) and 5.5% ahead of the 55 new sales in June 2013.  There is just a 1.3 months supply of inventory based on the current sales pace.  The median price of the 62 homes that closed in June was $550,000.  This is 12% ahead of the median last June ($491,000).  This is consistent with the overall County trends.

Santa Rosa: The inventory of homes and condominiums for sale in Santa Rosa at the end of June (288) was 32% higher than a year ago (218) and was 6% higher than last month (272).  New sales in June (257) were 30% ahead of the pace in June 2013 (197) and they were 8% ahead of the pace of last month (238).  There is only a 1.1 months supply of available homes in Santa Rosa based on the current sales pace.  The median price of the 229 homes closed in June in Santa Rosa was $430,000 compared to $395,000 a year ago – a 9% increase.  Most forecasts that I read expect the median price to stabilize at 8% to 10% appreciation for the year.  The Days on Market for the homes closed in June was 50 days compared to 60 days a year ago.

Sebastopol Trends: The inventory of homes and condominiums for sale (51) in Sebastopol at the end of June finally bumped up a bit, but was still 28% lower than that of June 2013 (71).  It was 21.4% ahead of that of last month (42).  There were 23 new sales for the month of June.  This is 44% below the pace in June 2013 (41) and 38% below the pace of the 37 for last month.  There is a 2.2 months supply of inventory based on the current sales pace.  Looking at the trend graphs for Sebastopol, I’d say they look “choppy” as compared to the overall County trends.

Sonoma Valley: The number of available homes and condominiums for sale eased a bit in June in the Sonoma Valley (Sonoma, Glen Ellen and Kenwood).  Inventory (138) is 18% ahead of the level of last June (111) and 9% below that of last month (151).  Over 40% – 56 properties of the 138 available – have asking prices in excess of $900,000.  There were 64 new sales for the month.  This is about equal to the sales in June 2013 (66) and 23% ahead of the pace last month (52).  Of the 64 new sales for the month, 28%, or 18, had list prices in excess of $900,000.  There is a 2.2 months supply of inventory in Sonoma based on the current pace of sales.  The Days on Market for the closed sales in Sonoma in June totaled 61 days compared to 53 a year ago and 50 last month.

Windsor: The inventory of homes and condominiums for sale (33) in Windsor at the end of June increased 32% from the 25 homes last month and was about equal to the 31 homes in June 2013.  New sales in Windsor in June (30) were 36% ahead of the sales in June 2013 (22) and were 20% higher than the 25 sales last month.  There is just a 1.1 months supply of inventory based on the current sales pace.  The median price of the 23 sales that closed in June in Windsor was $465,000.   This is 13% ahead of the median price of a year ago ($410,000).

Napa County: The inventory of homes and condominiums available for sale continued to move ahead in Napa County in June.  The inventory (416) is 3.5% higher than it was in June 2013 (402) and 3% higher than last month (403).  New sales (143) were 5% lower than last month (150) and were about equal to the pace last year (145).  There is a 2.9 months supply of inventory based on the current sales pace.  The “Days on Market” for the 138 homes closed in June was 78 days compared to 67 days a year ago.  The median price of homes closed in June in Napa County ($518,000) was 6% ahead of the median price of a year ago ($490,000) and 8% below the median last month.  The current median price is still 23% below the peak median price for the County ($675,000) recorded in June 2006.

Napa County Luxury Homes: Sales of Luxury Homes  (sales price in excess of $900,000) in Napa County have increased 20% for the period 7/1/13 to 6/30/14 compared to 7/1/12 to 6/30/13.  There were 203 luxury homes in inventory at the end of June 2014 compared to 190 at the end of June 2013.  49%, or 203, of the 416 homes in inventory in Napa County were Luxury properties.  There were 31 new Luxury Home sales in June 2014 compared to 24 in June 2013 and 29 last month.  22%, or 31, of the 143 homes sold in Napa County in June were Luxury Homes.  There is a 6.5 months supply of available homes based on the current sales pace compared to 7.9 months supply last year.  The Days on Market for the 20 closings of Luxury Homes in June was 103 days compared to 80 a year ago.

Napa: There were 220 available homes and condominiums in inventory at the end of June in the City of Napa.  This is 6% higher than the inventory a year ago (208) and it is 4% above the supply last month (211). New sales (83) fell 27% compared to last month (114) and they were 20% behind the pace in June 2013 (104).  There is a 2.7 months supply of inventory based on the current sales pace.  The “Days on Market” for June was 71 days compared to 63 days in June 2013.  The median price of the 104 homes that closed in Napa in June was $514,000.  This is 6% ahead of the median price in June 2013 ($485,000) and is a retreat from the $597,000 median price experienced last month.  The median price in June is 21% below the peak median price in the City of Napa ($650,000) recorded in August 2006.

Up Valley: Listings held steady compared to last month in the Up Valley Napa County market (Angwin, Calistoga, Deer Park, Oakville, Rutherford, St. Helena and Yountville).  The inventory was 152 homes at the end of June 2014 compared to 151 last month and 159 a year ago.  There was a big jump (111%) to 40 new sales for the month compared to 19 last month and 27 a year ago.  There has not been a month in the past 15 years where 40 homes have sold in the Up Valley in one month.  Of the 31 Luxury Homes (selling price in excess of $900,000) that sold in June, 50% of them were in the Up Valley market.  With this sales pace there is a 3.8 months supply of inventory compared to 5.9 months a year ago and 7.9 months a month ago.  The “Days on Market” for the 20 closings last month was 95 days compared to 79 days in June a year ago and 78 days for the County as a whole.  The Up Valley market continues to operate at a slower pace than the rest of the Wine Country but it is definitely a healthy market.

Closings: For the first six months of 2014, the top ten agents/teams in Dollar Volume closed were:  The Hamiltion Group (Santa Rosa); The team of Scott Murphy and John Stevens (Better Homes and Gardens – Leading Edge in Petaluma); Sheila Deignan (Sonoma); Diane Harris (Healdsburg); Diane Krause (Sonoma); Damon Savoia (Napa); Dee Grohmann (Healdsburg); Leo Merle (Sonoma); Liz Uribe (Sebastopol) and Herb Heil (Sonoma).

The top ten agents/teams in Units Closed were:  The Hamiltion Group (Santa Rosa); Liz Manfree (St. Helena); Jane and Ron Pavelka (Cloverdale); Sheila Deignan (Sonoma); Diane Harris (Healdsburg); Jeff Seligson (Sebastopol); Liz Uribe (Sebastopol); Tommy Apostolides (Santa Rosa); Charles Himes (Santa Rosa) and Diane Litchfield (Sonoma).

The following agents enjoyed closings for the period from June 1 to June 30, 2014:

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

In our Cloverdale office:  Ron and Jane Pavelka had a closing.

In our Healdsburg office:  Diane Harris enjoyed three closings, and Gina Cleaver and Mike Downes each had a closing.

In our Napa office:  Billy Birdsong enjoyed three closings; and Shawn Daee and Michael Senn had two closings each and Tressa Anderson, Clark Harding, Charley Laughlin and Nick Simone each had a closing.

In our Petaluma office:  David Poulsen had two closings and Barry Adamson, Lisa Gartman, Scott Murphy and John Stevens each had a closing.

In our Santa Rosa office:  The Hamilton Group had a Wine Country Group leading five closings, Mark Marcarian had two closings and Tommy Apostolides, Charles Himes, Jim Famini, Lindsey Ehrlicher, Don Jaramillo Carlos Rivas and Amy Beth Sirks each had a closing.

In our Sebastopol office:  Kay Henzerling and Norbert Tenenbaum each had two closings and William Cole, Rita DeSouza, Robert Owen, Jeff Seligson, Liz Uribe and Bette Meritt each had a closing.

In our Sonoma office:  Sheila Deignan enjoyed three closings;  Herb Heil had two closings and Carl MacPetrie, Shanis Nelson, Erick Rothfeld, Diane Litchfield and Michael Crain of Michael Crain Properties each had a closing.

And, in our St. Helena office: Liz Manfree and Linda Alioto each had two closings and David Barker had a closing for this period.

Congratulations to all