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Tale of two Price Points–Lack of Homes for Sale? Depends WHAT you’re SPENDING here in Sonoma County,Ca

Here in Sonoma County, California–Many Realtors are lamenting the LACK of inventory or homes for sale. I submit that it all depends on how MUCH money you wish to spend.  One of the most IN DEMAND price points is the 0- $250,000 price point. This has been the land of the REO (real estate owned) or bank foreclosed home. I fear this price point has “left the station” or is quickly disappearing. This price point is a natural for bank foreclosed homes AND Short-Sales. However, we only have 60 “Active” Short-Sales currently on the market. Take a look at the slide below and note we are DOWN -47% over last year at this time.  The question–is THIS the new reality of a surging market? We leave the lower price behind? Or is the market for this price point just stripping the shelves of all homes?  What’s going to happen to make this a stronger price point? MORE Short-Sales and REO’s. I can’t see a big wave of REO’s coming but Short-Sales can fill the need. We shall see if the consumer REALIZES they can SELL their homes short and get out from under a tough financial mess.

Now look at the NEXT slide–What a difference huh? Almost a 180 swing. The $1,000,000 price point is flush with listings having 40% MORE listings over last year at this time.  In between these two extremes we find a market still “starved” for inventory. The  next “range” of $250-$500,000 is down about -5% over last year but the next price point or the “mid-range” ($500-$750,000) which is gaining momentum is down about 21%.  The $750K to 1 Mil is +5%.  Knowing HOW the market inventory is before making an offer can determine WHAT you’ll offer and HOW you present your terms to the seller. KNOW your NUMBERS.   Feel free to call myself or Allison to give you analysis of YOUR price point.  707-799-3617.

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