Sonoma County's home prices strengthen a bit
Article published - Jul 17, 2007
County's home prices strengthen a bit
June's median hits $605,000 -- down 1.6% from a year earlier but up from May
By KEVIN McCALLUM
THE PRESS DEMOCRAT
Sonoma County's sluggish housing market showed modest signs of life in June, but agents say it's still too soon to start calling an end to the county's 2 1/2 year market tumble.
June's median resale price was $605,000, down 1.6 percent from the same month a year ago but rebounding to within $14,000 of the all-time high of $619,000.
Prices have fallen for 12 consecutive months in year-over-year comparisons, the longest decline since The Press Democrat began tracking home sales in 1990.
Inventory also continues to back up, as new listings hit a market even as buyers remain on the sidelines hoping for better deals.
But compared to the spring, June's market action contained hints brokers say are cause for optimism.
"I think there are some things that are starting to indicate we are starting to see some firming," said Rick Laws, Santa Rosa manager for Coldwell Banker, which prepares The Press Democrat's monthly home sales report.
Since January, median home prices have risen in month-to-month comparisons every month, except April, surging 11 percent, from $545,000 to June's $605,000. In May, the median was $575,000.
Some of that rise can be attributed to seasonal fluctuation, which is why year-over-year comparisons are considered a more accurate reflection of the market's health.
But an 11 percent price increase is significant by any comparison and should be noted by buyers who have the impression that the market is in free-fall, Laws said.
"If you compare it to the greatest year we ever had, things don't look that great," he said. "I think the six-month trend is very encouraging."
Market activity almost always picks up in the spring when buyers shake off the winter doldrums and young families try to complete moves by the beginning of the new school year.
That makes analyzing spring market activity tricky and brokers hesitant to read too much into the month-to-month price and sales increases the market now is showing.
Even so, there are signs that the worst may be over, some brokers said.
"Have we hit bottom? I can't tell because you always have a spring surge," said Beth Robertson, an associate broker with the Century 21 in Rohnert Park. "But what I thought was positive was that this might be the beginning of the end of the downward spiral."
Those signs of improvement lie in the year-to-year numbers. They are still down, but not nearly as sharply as they have been in recent months.
June's 1.6 percent decrease was the slowest erosion in year-over-year prices in three months, with March dropping 1.7 percent, April 6.2 percent and May 4.2 percent.
"I see that as a hopeful sign the market is stabilizing," said Phil Rose, who owns a Santa Rosa real estate firm. "The prices have stopped falling."
The reason agents are hopeful but far from jubilant is because the market continues to face several challenges.
Sales activity remains weak. The 348 sales in June was up slightly over May and significantly better than earlier this year, when January and February activity couldn't break 260 sales.
Total sales were 20 percent off last June's pace, when 435 homes sold. That's a sharper drop than May's 15 percent decrease, and second only to April's 21.5 percent drop compared to 2006.
That tells some brokers that what the market really needs is for buyers to wake up and realize how good they've got it.
"This is strongest buyers market that we've seen in eight years," said Ross Liscum, co-owner of Prudential California Realty. "We just can't seem to get the buyer to acknowledge they're in the driver's seat."
Liscum blames this condition in part on the media's "doom-and-gloom" headlines, while Robertson said she's seeing plenty of activity in homes that are priced right.
"Buyers are jumping all over a good deal," Robertson said.
A recent home in Rohnert Park priced in the high $400,000s was scooped up after a $40,000 price reduction, she said. "It came down 40 and it was gone," Robertson said.
The number of single family homes for sale in June increased by 4.9 percent, to 2,568. At the current rate, it would take 7.4 months to sell that many properties.
"This is not a market for all sellers," Rosa said. "A lot of sellers can't stomach this market."
You can reach Staff Writer Kevin McCallum at 521-5207 or kevin.mccallum@pressdemocrat.com.
Last changed: Jul 17, 2007 © The Press Democrat
County's home prices strengthen a bit
June's median hits $605,000 -- down 1.6% from a year earlier but up from May
By KEVIN McCALLUM
THE PRESS DEMOCRAT
Sonoma County's sluggish housing market showed modest signs of life in June, but agents say it's still too soon to start calling an end to the county's 2 1/2 year market tumble.
June's median resale price was $605,000, down 1.6 percent from the same month a year ago but rebounding to within $14,000 of the all-time high of $619,000.
Prices have fallen for 12 consecutive months in year-over-year comparisons, the longest decline since The Press Democrat began tracking home sales in 1990.
Inventory also continues to back up, as new listings hit a market even as buyers remain on the sidelines hoping for better deals.
But compared to the spring, June's market action contained hints brokers say are cause for optimism.
"I think there are some things that are starting to indicate we are starting to see some firming," said Rick Laws, Santa Rosa manager for Coldwell Banker, which prepares The Press Democrat's monthly home sales report.
Since January, median home prices have risen in month-to-month comparisons every month, except April, surging 11 percent, from $545,000 to June's $605,000. In May, the median was $575,000.
Some of that rise can be attributed to seasonal fluctuation, which is why year-over-year comparisons are considered a more accurate reflection of the market's health.
But an 11 percent price increase is significant by any comparison and should be noted by buyers who have the impression that the market is in free-fall, Laws said.
"If you compare it to the greatest year we ever had, things don't look that great," he said. "I think the six-month trend is very encouraging."
Market activity almost always picks up in the spring when buyers shake off the winter doldrums and young families try to complete moves by the beginning of the new school year.
That makes analyzing spring market activity tricky and brokers hesitant to read too much into the month-to-month price and sales increases the market now is showing.
Even so, there are signs that the worst may be over, some brokers said.
"Have we hit bottom? I can't tell because you always have a spring surge," said Beth Robertson, an associate broker with the Century 21 in Rohnert Park. "But what I thought was positive was that this might be the beginning of the end of the downward spiral."
Those signs of improvement lie in the year-to-year numbers. They are still down, but not nearly as sharply as they have been in recent months.
June's 1.6 percent decrease was the slowest erosion in year-over-year prices in three months, with March dropping 1.7 percent, April 6.2 percent and May 4.2 percent.
"I see that as a hopeful sign the market is stabilizing," said Phil Rose, who owns a Santa Rosa real estate firm. "The prices have stopped falling."
The reason agents are hopeful but far from jubilant is because the market continues to face several challenges.
Sales activity remains weak. The 348 sales in June was up slightly over May and significantly better than earlier this year, when January and February activity couldn't break 260 sales.
Total sales were 20 percent off last June's pace, when 435 homes sold. That's a sharper drop than May's 15 percent decrease, and second only to April's 21.5 percent drop compared to 2006.
That tells some brokers that what the market really needs is for buyers to wake up and realize how good they've got it.
"This is strongest buyers market that we've seen in eight years," said Ross Liscum, co-owner of Prudential California Realty. "We just can't seem to get the buyer to acknowledge they're in the driver's seat."
Liscum blames this condition in part on the media's "doom-and-gloom" headlines, while Robertson said she's seeing plenty of activity in homes that are priced right.
"Buyers are jumping all over a good deal," Robertson said.
A recent home in Rohnert Park priced in the high $400,000s was scooped up after a $40,000 price reduction, she said. "It came down 40 and it was gone," Robertson said.
The number of single family homes for sale in June increased by 4.9 percent, to 2,568. At the current rate, it would take 7.4 months to sell that many properties.
"This is not a market for all sellers," Rosa said. "A lot of sellers can't stomach this market."
You can reach Staff Writer Kevin McCallum at 521-5207 or kevin.mccallum@pressdemocrat.com.
Last changed: Jul 17, 2007 © The Press Democrat
posted by Jeromey Clifford, Sotheby's Intl. Realty | 10:33 PM
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