In the face of economic uncertainty and a year of steady increases in mortgage rates, the Sonoma County real estate market has stayed resilient and competitive in 2023. Prices peaked in May of 2022 at a county average of $572 per square foot. When interest rates began to rise in the back half of 2022, prices did fall through Q4, but then made a steady rebound this year. Spring was especially fast-paced, with many properties selling with multiple offers during the first week of market exposure. The average price per foot in September 2023 was $569, about 1% higher year over year, and just a touch lower than the peak!
Prices have continued to hold, on average, across the county because of a tight supply of available homes. New listings in September were down 26.5% year over year. And despite the tough interest rate climate, demand for homes in the county rose sharply, up 22.5% year over year. These forces have worked together to keep the market competitive and average prices high.
This week, on the heels of a very strong jobs report, mortgage rates rose even further in anticipation that the Fed may not done with its cycle of rate increases. Average mortgage rates are currently well over 7%, and there is talk that they are headed toward 8% as we move through Q4. Therefore, Q4 might finally offer opportunities to buy at a discount in our desirable slice of heaven. Sellers have about another month or so to get their homes to market before the holidays start distracting would-be buyers. If you are considering a sale, it would be worth contemplating whether to list soon or wait for a fresh crop of buyers in early 2024.
If you would like data for your specific area, or a market evaluation of your home, please reach out! I am always here to help you.
Average Price Per Square Foot - Sonoma County, 1-4 Units
Monthly New Listings - Sonoma County, 1-4 Units
Monthly Pending Sales - Sonoma County, 1-4 Units