The current reality of the market is that sellers have had to come down in their pricing. Therefore, I recommend to sellers, do not sell unless you absolutely have to. If you are certain you want to sell, price your property ahead of the market. This means something less than your competition. For buyers, the time is now if you want to make your dream of owning a piece of Wine Country real estate a reality. If you find a great property that’s priced higher than you expected to pay, don’t hesitate making an offer. Only the seller knows whether they will accept an offer less than the list price.

With buyers expecting and getting better deals, the market hardest hit currently has been the estate type home – those over $2,000,000 – where both inventory and buyer uncertainty are highest. Price adjustments for this market segment began occurring in 2008.

Here’s an example of three homes that sold over the last six months where the sales price was 20-40% less than the list price:

84 Loma Vista Dr., Sonoma:

 http://www.redfin.com/CA/Sonoma/84-Loma-Vista-Dr-95476/home/2511894  A lovely 5 bedroom home, the final sales price was $2,400,000. It sold for 44% less than its original sales price. The property had been on the market for 2+ years.

500 Aurora Lane, Sonoma:

 http://www.auroralane.com/  Another beautiful country property, the final sales price was $2,400,000 – 35% less than the original sales price. This property was on the market for 13 months.

19087 Gehricke Rd, Sonoma:

 http://www.neighborcity.com/property/19087-Gehricke-Rd-Sonoma-CA-95476-20813668-2314854/  Though conveniently within walking distance to the Sonoma Plaza, the final sales price was 35% less than the original sales price.

The price reductions suggest that the pool of potential buyers is less for the estate type homes, however, with the right pricing, these homes will sell. Again, knowing your competition will also help you set a fair price to motivate sales.

A client recently asked me to give him a market update for homes selling under $500,000 in Sonoma County.   He is thinking of how he can help one of his kids get into a home.   I looked at the  Residential Real Estate market in the cities of Sonoma, Petaluma, Santa Rosa or Healdsburg.

Overall, the graph presents a positive market in Sonoma for homes priced around $500,000.00.  With the amount of inventory selling within a two-month span, this means, within this category, it’s a sellers’ market. So buyers, act quickly to take advantage of the home owners credit and low interest rates. 

All of us here at Alain Pinel love the land and community of Sonoma County.  It would be our privilege to help you with any of your Residential Real Estate needs.  If you have any questions or concerns about your property, please feel free to  contact us for any help we can provide you.

 If you are interested in buying or selling Wine County Property or Vineyard Real Estate in Sonoma County, CA, reviewing 2009 sales of vineyards sold in Sonoma and Napa Counties gives a good indication of the overall health of the vineyard real estate market.  

The following link shows a 2009 graph  graph which represents 4 vineyard properties that sold in 2009.

  http://www.winecountry-realestate.com/blog/wp-content/uploads/2010/02/20100127-2009-four-sonoma-county-vineyard-sales.pdf 

Each vineyard property sale tells a story: 

The Napa Valley parcel, located in a desireable area, had great winery potential.  It is anticipated that the entire vineyard acreage will be replanted in 2010.  The Alexander Valley sale, second to the Napa sale in total dollars, had many attractive qualities including a spectacular building, strong vineyard-branding, and long-term contracts.  The Sonoma Valley parcel was smaller and was located in a beautiful setting.  The Russian River Vineyard parcel had an excellent production history.

We look forward to a great year and hope we can offer valuable service and guidance to anyone considering buying or selling Sonoma County Vineyard and Country Property.  Feel free to contact me or my partner Nicki Naylor with any questions you may have.

The Sonoma Valley market for homes is improving. Despite a 22% decline in the median sales price, (median sales price is the mid point where half of the homes are selling for more and half less), one key indicator, the amount of inventory measured in months supply of inventory (MOS) has declined to 5 months compared to over 10 months one year ago. Well priced homes representing opportunity are moving.

What about the Sonoma Valley Median Price? The decline in the median price is a result of the increase in Short Sale and REO sales which are included in the median price. In June the Median Sales Price was $113,000 less than the previous month. There were 51 homes sold and the average Days on Market (DOM) were 29 days in June, 2008.

June 2008 Median Home Sales Price in Sonoma Valley

Click on any of the following community guides to easily search for real estate by feature, amenity and price:

Glen Ellen, CA Real Estate and Visitor’s Guide

Healdsburg, CA Real Estate and Visitor’s Guide

Kenwood, CA Real Estate and Visitor’s Guide

Petaluma, CA Real Estate and Visitors Guide

Santa Rosa, CA Real Estate and Visitor’s Guide

Sonoma, CA Real Estate and Visitor’s Guide

The Stornetta Team —Here to help you with all your Sonoma County, CA Real Estate needs.

If you’re ready to purchase or sell your Sonoma County real estate or need help relocating, we would love to help you! You’re always welcome to contact the Stornetta Team @ (707) 815-8749. We promise to provide you with our world-class service! But if you want to read more about how we can help you, or just want to browse what we have to offer online, then you’ll find exactly what you’re looking for in our Sonoma County real estate and visitor’s guide. We hope you enjoy your visit!

Click here for our Sonoma County real estate / Napa Valley real estate & visitor’s guide, including land, vineyards, and homes for sale in Glen Ellen, Healdsburg, Kenwood, Napa, Petaluma and Santa Rosa and Sonoma, CA…

www.WineCountry-Real Estate.com is owned by Mark Stornetta, who is a licensed REALTOR® of Pacific Union, GMAC Real Estate, 640 Broadway, Sonoma, CA 95476. (707) 934-2301. Pacific Union, GMAC Real Estate is licensed in the state of California, is an Equal Opportunity Employer and supports the Fair Housing Act.

May, 2008

Real estate market reports are most often painted with a large brush without time given to micro-geographies where the feel of a community varies greatly which then reflects on pricing. The “big brush” for Sonoma County real estate in May showed a 30% decline in the average median sales price to $489,000 compared to the same period two years ago with unit sales being 11% less for a total of 366 sales

Now, lets take the “small brush” and look closely at the cities within Sonoma County. You see unit sales are almost equal to two years ago except in Petaluma and Rohnert Park. Average DOM (days on market) are still behind two years ago, but improving. In May 2007, there were 366 single family units sold and the Average DOM was 77.

Real estate market reports are still painted with a large brush without much time given to micro geographies where pricing varies widely. Sonoma County real estate for May showed a 30% decline in the median sales price compared to the same period two years ago with unit sales being 11% less.

When you look closely at the cities within Sonoma County you see a trend where unit sales are almost equal to two years ago except in Petaluma. The average DOM still falls behind two years.

I believe the median sales figure decline of 42% reported for Healdsburg is an anomoly. Sales and pricing activity is strong in the Healdsburg market.

Definitions:

Median sales price is the midpoint between the most expensive house and the least expensive house sold in an area during a specific time. The median sales price varies widely by location and geography. The information source is based on MLS recorded sales.Units sold are the total single family residences that closed escrow in May.

Average DOM (Days on Market) is the total days the listing was on the market until close of escrow.

March, 2008

Real estate market values in Sonoma County are a function of the uniqueness of the quality of the home site, vineyard terroir, views, and proximity to downtown squares. From there, price becomes the compensating reconciler for properties located in areas where there is more traffic, greater neighbor nuisances, etc. The Real Estate Market Report is a great place to start to understand market activity for cities in Sonoma County.

The table below reflects changes in the median prices for several Sonoma County cities.

How do these numbers compare to two years ago? Sonoma home sales are more active in highly desirable areas. Homes with a view, located close to town, and have nice landscaping are dictating higher price points. In some cases, the median price point might be distorted by a home sale with large acreage and vineyards, but, strong demand still remains for Sonoma County homes located near the center of town and Sonoma country property with views.

The grape harvest has come to a close and grape gondolas are being parked for another year. I hope it has been a good harvest for you and your friends. Since the single family residential market is in a stalemate where buyers believe housing prices will continue to decline while sellers think their house is still worth what it was months ago, let’s look at the bright side—vineyard sales activity. After years of relatively modest sales price increases, the demand for vineyards has been strong with sales prices increasing. Below is a chart listing four vineyard properties that were sold in the past five months. Average sales prices/acre ranged from $55,000 to $149,000/acre. Why such a wide spread? The differences in vineyard sales prices/acre are due to the demand for the type varietal planted, age and yields, grape contracts and appellation.

The vineyard sale in Windsor was record breaking for the Russian River appellation. It sold for $4,050,000 or $126,000/acre. The blue line illustrates the sales price/acre, $126,000. The red bar is the total selling price, $4,050,000.

The reality- there is opportunity on the buying side so buyers put your financing in place. Sellers, understand your market segment before making a decision to list.

Finally, call me at (707) 815-8749 to assist you in developing your strategy to buy or sell and aid you in your decision-making process or visit my website to learn more about the Stornetta Team.

 

Example:  In June, 2007 a property sold for $2.1 Million.  The estimated market value of the building site and improvements is $700,000.  The market value of the plantable acres is estimated to be $1.4 Million or $37,000 per acre.  The sum of the building site, improvements, and plantable acres equals the sales price of $2.1 million.   Note:  The value per acre will vary depending on the value assigned to the building site and improvements.

Please call 707-815-8749 with questions regarding the above.  The Stornetta Team can assist you in your search for Sonoma real estate or Napa real estate.