Market Supply & Demand TrendsThe following 2 charts illustrate some of the dynamics of the Sonoma market over the past few years, and are broken out by houses under and over $1 million. It is common for the market for more affordable homes to be hotter than that for more expensive homes, and indeed market pressure has generally increased around the Bay Area in the more affordable price ranges as buyers look, sometimes desperately, for purchase options they can still afford. Properties under $1 million maintained an extremely high percentage of listings accepting offers in the quarter, and those listings that sold without going through price reductions averaged a sales price just a tad above asking price (100.2%). For home listings above $1 million, where the buyer pool is smaller and inventory sells more slowly, the average sales price for homes selling without price reductions was about 3% below list price. For those more expensive homes that went through price reductions before selling, the discount plunges to 17% off original list price, a clear sign of dramatic overpricing. Homes over $1 million also, on average, take significantly longer to sell than the more affordable price segment.
Comparative Home Values