Otto Kobler,Branch Manager
NMLS ID# 225957 CA BRE ID# 00981742
3550 Round Barn Blvd., Suite 310 Santa Rosa, CA 95403
Branch NMLS ID# 379493
Good morning to one and all! Here’s some data I’ll be discussing this morning on “The Real Estate Hour” heard every Sunday, 9 to 10am pst. 1350AM, 103.5 and 94.5FM and www.KSRO.com. Above is a chart showing how far we’ve come from the “Depth” of the recession in relation to median home price in the Bay Area. The top 4 counties with the biggest come back are in double digits. Sonoma County? 3% above.
Currently we have 1055 “Active” or “Showable” Detached Single Family dwellings listing in Sonoma County-for a population of 500,000+. Slim Pickens!
Of those “Active” listings 316 are $1+Million! or 30%.
Here’s a price breakdown:
$251,000 to $499999 122
$500,000 to $749,999 422
$750,000 to $999,999 190
1+Million to $1,249,999 65
$1,250,000 to $,1499,999 53
$1,500,000 to $1,749,999 31
$175,000 to $1,999,999 29
$2+ Million 128.
Condos–Total of 117.
Solds–obviously due to the Fires of last year the October Sales will be skewed. After October 9th our “Cancelled” and “Expired” listings shot through the roof as those homes listed and lost in the fire left the market. Sales plummeted but soon heralded a big boom in the $1+Million price point as folks replaced lost homes.
Today we have current 266 Sold sales to date–last year 182.
I’ve been licensed and a Realtor since 1978. Look at the chart below and you’ll see I spent 12 years wandering the desert of double digit interest rates. Also note that my first year was my last year of single digit interest rates for some time. How did I do? I was a top producer in my office all through the double digit storm. When we dropped under 10% it was cause for mass celebration in the Realtor ranks! I remember my fellow agents stating, “Man if we could get single digit interest rates we’ll tear this market wide open!” And we did.
Then notice it took almost 20 years to get down to the 4% range. If you’ve been in the business 5,10, 15, years you’ve KNOWN no other rates and experienced a historic low. Well, guess what boys and girls, rates DO go up, markets WILL go down, and recessions will come and go. Enjoy this while you can but remember to stack some cash aside, buy some investment properties with your big commissions today and prepare for the inevitable. I remember some of the infamous phrases used before the BIG BANG of 2007, “We’ll always have appreciation”, “We’ll refinance you out of this loan next year and pull cash out.” We all need to guard against, “Irrational Exuberance”. (thanks to Erik Oquist of Wells Fargo Home Mortgage for the graphics!)