Meanwhile, gardens are in peak bloom, the grapevines have leafed out. My neighbor’s pinot has set fruit I noticed today. The ROSES are in full force. Everywhere you go, from country lanes to in town, there is a riot of roses.

I’ll leave you with a few pictures until my next post.

Looking through a red rose and Russian River Zinfandel to a horse pasture beyond

A view of a Sonoma County horse pasture and vineyard through climbing rose New Dawn

A riot of roses climb the fences along a Sonoma County Driveway

Rick took a look at the percentage of distressed property (euphemistically called “bank-influenced”) sales, which refer to short sales and REO’s or foreclosed properties. The data show at price ranges up to $1 Million, that the percentage that distressed properties make in the market is still very high, but declining as compared to the market bottom of Q1 2009. That is probably because buyers are coming out of the woodwork at the mid and upper ranges, and also because “normal” sellers (that is how agents refer to them in MLS comments!) have probably realized that now is as good a time as any to sell, that prices may have stabilized and we are not likely to see significant appreciation for some time. Also, they may realize it is good to sell when rates are down and buyer tax credits are in place. Inventory continues to be VERY tight and sales are up significantly.

It is also interesting to note that distressed sales now make up 17% of sales above $ 1 million dollars, where as there were no distressed sales at that price range a year ago. There were also very few sales over a million a year ago! Stay tuned for more later this week and feel free to call me or email with your questions or comments.

Bank “Influenced” Sales as a Percentage of Total Sales

Condominiums Q1 2009 88% Q1 2010 65%

SFR under $500,000 Q1 2009 82% Q1 2010 59%

SFR $500K to $1Million Q1 2009 42% Q1 2010 29%

SFR $1M to $10M Q12009 0% Q1 2010 17%

The federal government currently is offering a credit of up to $8,000.00 if a buyer has an accepted purchase contract by April 30th and closes escrow by the end of June. The state of California is offering a $10,000 credit given over 3 years (BIG NOTE: This credit only can be taken against your state tax liability–if you don’t have $3,300 dollars worth each year, you don’t get the full credit.)

The big question is can buyers get the state and the federal credit? The state credit becomes available May 1st while you must be in escrow no later than April 30 to take advantage of the expiring federal credit. Some people seem to think that by closing escrow on a purchase after May 1st, but initiated before close of business April 30th, you can double dip on these tax credits.

However, when each of us read the bill it seems that the authors did not intend buyers to get both credits. ftb.ca.gov/forms/2009/09_3528.pdf  This has caused a fair amount  of confusion for potential buyers. From yesterday, when we started working on this post, to today, the California State Franchise Tax Board has provided further clarification on their home page.

Tax Credits for New Home Purchase / First-Time Buyer
The New Home / First-Time Buyer Credits are available only for purchases that close escrow on or after May 1, 2010.

It would appear from reading this statement that it may be possible for a limited number of buyers to qualify for both credits. Not only would the terms and timelines of your purchase need to be perfect, but you would need to meet differing criteria for eligibility for each program as they are constructed very differently.

Otilia called the Franchise Tax Board and they recommended that each buyer call to confirm if they are eligible for the state credit.  As always we recommend that you consult your CPA for more clarification. They may need to call the state too! Please feel free to email or call us with any further questions!

Today the national press reported that nationwide, pending sales rose sharply throughout the US. The interpretation is that the soon to expire Federal Tax Credit of $8,000 for first-time and $6,500 for existing home owner tax credits were promoting the increased buyer activity. Interestingly, the article reported that strong sales in the Midwest lead the charge, and that sales have declined in the Western States. As yet further proof that all real estate news is local, the numbers of pending Sonoma County home sales bucked the Western states trend. (Wait till you see the March numbers, coming soon!)

Meanwhile–this video does a good job of capturing the flavor of barrel tasting weekend, and has scenes shot last week at Joseph Swan, Bella, Stryker and other Sonoma County wineries.

Sonoma County Home Sales Rate hits Two Year High, in February!

February just ended. It was a short, cold and rainy month but that did not deter home buyers and sellers from ratifying purchase contracts on 557 homes, from Santa Rosa to Petaluma, Sonoma to Healdsburg.

Every month I review the latest sales data for Sonoma County homes and country properties and make them available to you. This month there are some very striking results to report. The number of newly ratified sales contracts, which I reported as very high in January, has increased to the highest level in at least two years. Since February is seasonally a very slow, short month, this is particularly interesting.

In addition, Month’s Supply of Inventory is also at a two year low, and only 2.4 months supply of homes are available at the current rate of sales. Many of the homes available, if they haven’t sold in a few months, are purely not selling because they are priced too high for today’s market. This is particularly true for homes priced under $900,000. That means well-priced homes that are priced well and show well, are selling VERY FAST!

What does this mean for you if you are a buyer? If you want to take advantage of the $8,000 first time buyer or the $6,500 move up buyer tax credits, you must be in escrow (newly ratified sale) by April 30th, and close by June. At some price points and for particularly well-marketed, aggressively priced homes, you will likely encounter multiple offers and a competitive market place. It is important to have a good relationship with a strong realtor who is on top of the market so that you can take full advantage of home buying opportunities as they come up.

What does this mean for you if you are a seller? If you have been holding off putting your home on the market, following conventional strategy to put your home on the market in the spring, it is not too early to (A) start the preparations, and (B) think of moving up your timeframes to take advantage of the current low inventory and low interest rates and tax credits. The better you can prepare your home prior to market launch, if you will, the quicker it will sell and the more money you will earn. Please contact me for details.

(If your home is under-water, that is, if you owe more than it is worth, there is some hope the process of selling the home under those circumstances, will be improving in the coming months. That is subject for another post.)

Here are the rest of the data from this month’s reports. (Other points to note–the median price is up 15% versus last February, when it bottomed at $290,000. It is down from a whopping $619,000 a few years ago and down 20% versus February in 2008.)

Sonoma County Home Sales Trends March 1,2010 Pam Buda Prudential California Real Estate

Spring is in the air! The sun has come out this week, it is coming up earlier in the morning, and setting later. We are all acting a little goofy after so many weeks of (much needed) rain. I wondered, “When will the ducks be back in the pool?” Right on schedule, the mallards returned. They arrived just after dawn, take a liesurely swim and then sit under an apple tree on the warm pool deck, napping and drying off. Not a bad life. They are the picture of contentment.

Ducks sunning by the pool during their annual visit to Sonoma County

This morning, I wondered “How am I going to make my Ducks in Wine Country Post, Part Trey, the sequel any different than the first two?” (Side note: Do I need to? After all the joy of the seasons is in their repetition. I guess the same could apply to seasonal blog posts.)

Then, serendipitously today, I learned what the ducks and Sonoma County residents both know.
Courtesy of Nathan Halvorsen and the Press Democrat newspaper:

Do you have a smile on your face and a little extra pep in your step? Well, so does your neighbor.

A massive study released Monday determined that people in Sonoma County are happier and healthier than anywhere else in California — and ranked fifth overall in the nation.

The Gallup-Healthways Well-Being Index, based on interviews with more than 353,000 Americans during 2009, asked people to assess their jobs, finances, health habits, mental attitudes and communities.

A large scale study of 300,000 plus Americans, including 750+ from Sonoma County, sponsored by the Gallup organization, determined that Sonoma County, specifically the Santa Rosa-Petaluma area, is home to the happiest people in California, and the community is fifth ranked in the nation for happiness and quality of life, also reported in USA Today.

Sonoma Coast Video

This time of year there is an extra good reason to visit the coast. From January to April, if you are lucky you may spot Pacific gray whales as they make their way both north and south between Alaska, where they do their feeding, to the lagoons of Baja Mexico where they give birth to their babies. Here is a link to details. You can find out about volunteers who will be happy to help guide your whale watching.

The underlying story is a bit different. Inventory has declined significantly over the last two years. Newly pending sales (homes under contract but not yet sold) rose sharply to 496, one of the highest monthly rates in the last 13 months, even though January is typically slow. That is up 117% over January pending sales two years ago and up 17% over last year.

In early 2010, buyers remained active over the holidays. Pouring rain and football playoffs did not deter them in January, at most price ranges. Unlike last January, when activity was concentrated at the lowest price ranges (under $350K), this year the market is active up to about $800,000. There is also high buyer activity at price ranges from about $1,800,000 to $2,500,000. 37% of buyers in this price range paid cash in Q4 2009, making financing less of an issue for them, and buyers under $800,000 are finding conventional loans easier to obtain, putting the squeeze on sales in between those two price points.

I have compiled a report from the same data used to generate the Press Democrat’s stories and am posting it here. I pulled the data going back two years rather than just one so that the numbers can be viewed in the context of seasonal trends.

Most striking is the extreme increase in unit sales versus two years ago, the extreme decrease in inventory (from 3365 homes for sale to 2070)–thanks to the high rate of sales, and the increase in median price (year over year with last February representing a bottom in prices.) Please call or email me if you have any questions, or if you would like me to analyze a particular home or area. If you are considering selling your home but have been reluctant to do so “because of the market”, please get in touch. This may be a great time to sell!

Sonoma County Home Sale Trends January 2010

I already use my iPhone in so many ways when with clients and this tool will be a welcome addition.
So far I have used the iPhone out on location

to show maps, routes, and traffic
to take pictures and videos
to show pictures and videos from listings
to determine the orientation of a home with the compass
to send and search emails and review contract documents
to locate and make lunch reservations
to view the multiple listings,
to make blog posts or Twitter, LinkedIn and Facebook updates
do calculations and more.

Now I can quickly point out what wineries are in range of a given weekend home, point out the latest upcoming tasting event or festival, recommend hotels, etc. I am not a golfer but this app finds all the golf courses within radius of a give property. It looks pretty good for a start and takes advantage of the iPhone environment. Check it out!

Visit Sonoma? There's an App for that!