The Sonoma County Real Estate Market at the Start of the New Year
January 2017 Report including 12 custom charts
Gold, Google, Soybeans & Sonoma Home Price AppreciationThis first chart is a somewhat lighthearted, but we believe accurate look at how various 2011 investments would have played out through 2016. When calculating appreciation, purchase and sale dates are critical factors, and changing those can alter the results significantly: Using 2011, the last bottom of the real estate market, as the purchase date certainly plays to the advantage of home price increases. If you bought gold or soybeans in 2011, you really should have sold them a couple years ago at the height of the commodity price boom. Besides the appreciation percentage noted, buying a home in 2011 with all cash would have generated large, additional financial returns in the form of extremely low monthly housing costs. Buying it with 20% down supercharges the return on cash investment, and that is before adding in other advantages: Even with an 80% loan, by 2016 your monthly housing costs, with recent low interest rates and tax advantages, would be well below market rents. Then there is the huge capital gains exclusion on the sale of a primary residence, which would not apply to other investments.
Long-term Median Home Price Appreciation Trends
Sonoma continued to see significant median sales price appreciation in 2016.
Home Appreciation by City & Town, since 2011
What Costs How Much Where in Sonoma
Sales & Prices by City and Home Size
2016 Sonoma Home Sales by Price Segment
Mortgage Interest Rates in 2016
Interest rates popped 22% higher since the election, though they still remain low by any historical measure. Where they will go now is a subject of intense speculation.
The S&P 500 Stock Index since 1994
To the surprise of many, U.S. stock markets also popped after the election to their highest points ever.
And now on to 2017, certain to be another interesting year.
Wishing you and yours a safe, healthy, happy and prosperous New Year.