Wine Country Real Estate Trends in June 2013
Company Values –
Accountability – The second of the company values is accountability. Accountability is observation and awareness. By definition, accountability is an obligation or willingness to accept responsibility or to account for one’s actions. To do this, we must observe and be aware of our actions.
Certainly, as fiduciaries to our clients, we are accountable for our actions in a transaction. We build a relationship of respect and trust. When I hear from clients that one of our agents is performing beyond their expectations, I know that our agent is carefully observing the situation and is totally aware of the impacts upon the individuals involved in the transaction.
There is a quote by civil rights, religious rights and feminist activist Nelle Morton that I enjoy. I believe that it speaks to the principle of Accountability: “The farthest place on earth to journey is into the presence of the person nearest to you”.
Next post: Personal Responsibility
Wine Country Group Events: We are having a “Power Listing Workshop” on Thursday, August 8 from 10 AM to 1PM at the Wells Fargo Center Fireside Room. Presented by two of the best trainers in Northern California – Keith Robinson and Rich Casto, this workshop will cover the following topics:
Providing a top value proposition to the seller
Convincing sellers to price competitively
Common sense pricing models
Never reduce your commission again
Overcome any concern the seller may have
A complete step-by-step process
Attendees will receive:
A complete customized listing presentation regardless of company brand
Scripts
Complete access to videos of the listing presentation after the training
A chance to network with top agents across the Bay Area!
We are also having a “Texas Hold-em Poker Tournament” on Friday, September 20 at the Fountaingrove Inn in Santa Rosa to benefit The Children’s Village of Sonoma County and the Living Room. We are in need of event sponsors, prizes, and live auction items. I hope that you can support and contribute to this great organization that does so much for kids here in Sonoma County.
Wine Country Group Results for June 2013
The Wine Country Group had 74 closings this June compared to 88 in June 2012 and 92 last month. Our dollar volume was $40.2 million compared to $47.4 million last year and $57.8 million last month. Our Sonoma office led in June with 21 closings while the Sebastopol and Santa Rosa offices each had 15. The Sonoma office led in dollar volume with $11.4 million in sales while the Santa Rosa office had $6.7 million and the Sebastopol office had $6.1 million. Our Wine Country average closing sales price was $543,067 comparing to $538,596 a year ago. Our escrow openings were a healthy 109 units compared to 85 in June 2012. We had 44 new listings compared to 41 a year ago.
The Wine Country Group currently has 109 pending sales with a value of $77 million dollars. We have 143 active listings with a value of $124 million dollars. Our average listing price is $868,000 – compared to an average of $824,000 a year ago.
Wine Country Market – June 2013
Sonoma County: Sales fell sharply in June compared to May and inventory of unsold homes rose for fifth month in a row in the County of Sonoma. Inventory was 822 units at the end of June compared to 751 units at the end of May. Inventory is 21% below the inventory of June 2012 (1,043). New sales in June (552) were 20% lower than last month (693) and 12% lower than that of June last year (633). There is a 1.5 months supply of inventory based on the existing sales pace – slightly better than the 1.2 months supply last month. Properties are selling faster than they have in many years. Homes that closed last month were on the market an average of 63 days compared to 98 days on market a year ago. This is the lowest period for Days on Market for Sonoma County since September of 2005 at the height of the last market. With this velocity has come a surge in median price. The median price of homes closed in June in Sonoma County ($420,000) was 26% ahead of the median price of a year ago ($333,000). This cooled on a year over year basis from last month when the median price increase was 33%. The low median price over recent years was $292,000 in February 2011. The market has rebounded 44% since that low.
Distressed properties (foreclosures and short sales) currently make up 7% of the inventory and 15% of the new sales – this continues to trend down month over month. One year ago, the distressed property inventory represented 14% of the overall inventory and distressed sales represented 36% 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 90 distressed properties that sold in the month of June ($340,000) was 35% higher than June a year ago ($252,000).
Cloverdale Trends: The inventory of homes and condominiums for sale in Cloverdale (39) at the end of June 2013 was just 11% below that of a year ago (44) and had a jump of 30% over last month (30). Sales for the month of June (17) were equal to the sales a year ago (18) and a bit lower than the sales reported last month (21). There is a 2.3 months supply of available inventory in Cloverdale based on the current pace of new sales. 10% of the inventory is distressed properties (bank-owned, short sale or foreclosure), 29% of the new sales and 7% 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) (34) at the end of June 2013 was 13% lower than that of a year ago (39) and was 10% higher than last month (31). Sales for the month of June (10) were 150% higher than the sales a year ago (4) and were higher than any month in the last 13. There were 8 closings in the month of April along the coast – the same as last June and four times higher than the 2 recorded last month. There is a 3.4 months supply of available inventory in the Coastal Sonoma market based on the current pace of new sales. Days on market on the Coast remain higher (83 days) than the County in general (63 days). 6% of the inventory is distressed properties (bank-owned, short sale or foreclosure), 30% of the new sales and 13% 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 (67) in Healdsburg at the end of June was down 29% from that of last year (94) and it was down slightly from last month (70). New sales (28) were up 33% from the 21 new sales in June 2012 and were up slightly from the 25 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 2.4 months. Only 1% of the inventory (1 home) in Healdsburg consists of “distressed properties” (bank-owned, short sale or foreclosure), and only one of the new sales in the month was a distressed properties. Healdsburg is essentially out of distressed properties at this time.
Petaluma: The inventory of homes and condominiums for sale (75) in Petaluma at the end of June was 24% lower than a year ago (98) and it was 25% ahead of the supply last month (60). New sales in June (60) were 36% below the pace in June 2012 (94) and they were 28% below the pace of last month (84). There is a 1.3 months supply of inventory based on the current sales pace. The median price of the 71 closed homes in Petaluma in June ($491,000) was up 34% from the median closing price in June 2012 ($367,000). Distressed properties (bank-owned, short sale or foreclosure) make up just 10% of the available inventory, 12% of new sales and 13% of closings for the month.
Santa Rosa: The inventory of homes and condominiums for sale (218) in Santa Rosa at the end of June was 18% lower than the inventory a year ago (267) and it was 7% higher than the inventory at the end of last month (203). New sales in June (215) were 20% below the pace in June 2012 (269) and were 21% lower than the pace last month (273). Is the market cooling? There is only a 1.0 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 59 days – the fastest since December 2005. The median price of the 200 homes closed in June in Santa Rosa was $395,000 compared to $296,000 a year ago – a 33% increase. Distressed properties (bank-owned, short sale or foreclosure) make up just 6% of the available inventory, 14% of new sales and 17% of closings for the month.
Sebastopol Trends: The inventory of homes and condominiums for sale (71) in Sebastopol at the end of June rose for the sixth straight month. It was 11% lower than that of June 2012 (80) and it was 11% ahead of that of last month (64). There were 44 new sales for the month of June. This is a whopping 47% higher than the new sales in June 2012 (30) and 22% ahead of the 36 sales last month. There is a 1.6 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 four distressed sales and seven 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 117 available homes in inventory at the end of June in the Sonoma Valley (Sonoma, Glen Ellen and Kenwood). The inventory is 26% lower than the inventory a year ago (157) and 5% higher than the inventory last month (111). There were 75 new sales for the month. For the last three months, new sales have been 75, 74 and 75. This sales pace is 32% higher than the pace in June 2012 (57). Days on market remained relatively low in June at 54 days – the lowest since March 2005. There is a 1.6 months supply of inventory based on the current sales pace. There are only 6 available distressed properties (foreclosures and short sales) in the inventory. 15% of the new sales and 8% of the closings were distressed properties for the month.
Windsor: The inventory of homes and condominiums for sale (31) in Windsor at the end of June bounced back from the 24 at the end of May. Inventory is now just 16% lower than a year ago (37). New sales in June (23) were one half the pace that they were in May (46) and they were 28% lower than the pace in June 2012 (32). There is a 1.3 months supply of inventory based on the current sales pace. Distressed properties (bank-owned, short sale or foreclosure) make up 19% of the available inventory, 26% of new sales and 40% of closings for the month.
Napa County: The available number of units in Napa County (402) continued to rise for the fourth month in a row. The inventory is 18% lower than it was in June 2012 (489) and 5% higher than last month (384). New sales (171) were just about equal to that of last year (175) and last month (164). There is a 2.4 months supply of inventory based on the existing sales pace – more of a balanced market than Sonoma County. Nonetheless, the median price of homes closed in June in Napa County ($488,000) was a whopping 41% ahead of the median price of a year ago ($345,000). Days On Market fell to 68 compared to 113 a year ago. This is the lowest Days On Market for homes in Napa County since September 2005 – the height of the market.
Distressed properties (foreclosures and short sales) currently make up only 4% of the inventory. Currently there are 17 distressed properties in inventory compared to 48 a year ago. Distressed properties make up 16% of the new sales. There is 0.6 months supply of inventory of distressed properties based on the current sales pace. The median price of 16 distressed properties that sold in the month of June ($334,000) was 18% higher than June a year ago ($282,000).
Napa: There were 208 available homes in inventory at the end of June in the City of Napa. Like the County, this is a continuation of the improvement inventory for the fourth straight month. The inventory is 25% lower than the inventory a year ago (278) and 7% ahead of the inventory last month (195). There were 117 new sales for the month about the same as last month (115). The sales pace is 7% behind the sales pace in June 2012 (126). There is a 1.8 months supply of inventory based on the current sales pace. The median price of the 78 homes sold in the City of Napa in June ($485,000) was 38% higher than the median price in June 2012 ($352,000). Distressed properties (foreclosures and short sales) represent 5% of the inventory, 13% of the new sales for the month and 8% of the closings for the month. Distressed sales are drying up in Napa as in our other Wine Country markets.
Up Valley: There were 159 available homes in inventory at the end of June in the Up Valley Napa County market (Angwin, Calistoga, Deer Park, Oakville, Rutherford, St. Helena and Yountville). This is 9% lower than the inventory a year ago (175) and equal to the inventory last month (157). There were 31 new sales for the month. This is 94% ahead of the pace of last June and up 29% from the pace of new sales last month (24). There is a 5.1 months supply of inventory based on the current sales pace. Even at 80 Days On Market, the closings were fast by Up Valley standards. Last year the Days On Market was 175 days. There are just two distressed property (foreclosures and short sales) currently on the market in Up Valley – so that market is gone!
Closings: Since I missed the month of May – this report includes closings for both May and June. The following agents enjoyed success during this period:
In our Cloverdale office, Ron and Jane Pavelka had five closings.
In our Healdsburg office: Gina Cleaver enjoyed five closings; Debbie Adler had three closings; Kent Mitchell, Bernie Curley, Mike Downes and Linda Farwell each had two closings and Dee Grohmann, Diane Harris, Debby Hendershot, Tom Lawrence, Elissa Morrash and Judy Csimma each had a closing.
In our Napa office: Nick Simon and Lynda Jenson had two closings, and, Shawn Daee and Tressa Anderson each had a closing.
In our Santa Rosa offices: The team of Larry Tristano and Charles Himes enjoyed five closings; Carlos Rivas of Mason McDuffie Commercial Real Estate had four closings; Tommy Apostolides, David Poulsen, Jill Rake, Christen Hamilton and Don Hamilton had two closings each; and Bonnie Falconer, John Styles, Sharie Lavin, Jim Famini, Ray Evans, Lindsey Ehrlicher and Beth Sirks each had a closing.
In our Sebastopol office: Allison Pharis enjoyed four closings; Liz Uribe enjoyed three closings; Jeffrey Seligson, the team of Doug Schaeffer and Cary Fargo, Pauline and Michael Pellini, Chris Nelson, Patricia Paulsen and Laurie Parris each had two closings; and Pam Buda, Si Edman, Barbara Jean Paul, William Kent, the team of Will Brown and Gene Bonino, Richard Petersen and Susan Greer each had a closing.
In our Sonoma office: Sheila Deignan enjoyed five closings; Mike Caselli, Michael Crain and Tish Thames enjoyed four closings each; Leo Merle and Herb Heil had three closings each; Mara Kahn, Patty Keiser, Frank Lazzarotto, Mari Johnson, Joyce Davison and Erick Rothfeld enjoyed two closings each; and Mary Chelton, Erin George, Diane Litchfield, Diane Krause and Carl MacPetrie each had a closing.
And, in our St. Helena office: Liz Manfree had a Wine Country Group high seven closings; Jeff Veness and Rianne Pasquareillo had three clossings each and Gina Papele White had a closing for this period.
Congratulations to all!