Entry Level Sonoma County Real Estate Market Hopping!
2 Comments Published by Pam Buda June 2nd, 2008 in Buyers, Market updates. by Pam Buda
Please click on the image above to see one that is actually readable!
The trend we first noted in February is continuing in Sonoma County Real Estate Sales, led by our entry level market of homes under $500,000. Not only is the number of new CLOSED sales up to the highest point in over two years, the number of newly opened escrows (UNDER CONTRACT above) is increasing even more rapidly, on pace to close next month.
Many of these homes are bank-owned (REO’s) or short sales and the buyers consist of investors and first time buyers or folks who are down-sizing. The number of newly opened escrows in this category is up 274% over last year at this time. While buyers think they can offer considerably lower than asking, that is not necessarily true. I just opened escrow for a client in this price range and we were able to get a great property that had been on the market for some time (not a foreclosure) and ridden the price trend down. The perils of overpricing in this case benefited my buyer who is in contract to purchase this home for 33% less than the original asking price, and 15% under the most recent price. But the REO’s are now priced to sell for the most part and attracting multiple offers. One of the best deals I saw in Montgomery Village last week at under $320,000 had four offers within a few days of coming on the market and still the bank had not selected which cherry offer to pick. But even if this property sells for slightly over asking, it is a great solid home (in need of much TLC) on a prime street and lot with surrounding homes that will love to see this one fixed up!
Perhaps the big thud we heard in Sonoma County last winter was the sound of the market hitting bottom. We shall see. More stats and opinions to come on other segments of the Sonoma County Real Estate market this week.
Pam…
I totally agree. The entry level market is on fire!
I showed a bank owned property in Hayward, Ca. to clients last week. Listed on Friday…I showed it on Saturday. It looked like a good buy for the price and my clients showed strong interest. I called the listing agent and I was informed that he had not only listed the property on Friday, but had received an offer substantially over the list price, sent the offer to the lender/owner which accepted it and he marked it Pending…all on the same day! Having pulled the new listing off the MLS on day one, I did not think to check the status on day two. My bad! …but who’d a thunk? A one day sale of a distressed property???
Hi John,
Interesting to note similar reports of activity in other parts of the Bay Area that have been hard hit. Palo Alto, Menlo Park, etc. have been cooking along all the time but glad to hear things are picking up in your neck of the woods. The banks seem to be figuring it out what they need to do to move inventory.