Sonoma County home sales surge

<p>Sonoma County’s summer home sales surge continued in July as buyers snapped up discounted properties shed by lenders and financially strapped homeowners.</p><p>The 413 sales of existing single-family homes in July were up 20.8 percent from a year ago. That was the fourth consecutive month sales have increased, a trend analysts said has taken hold as prices continue to fall in many areas of the county.</p><p>“People are out looking for bargains. I think you’re going to see continued softening of prices into next year,” said Leslie Appleton-Young, chief economist for the California Association of Realtors.</p><p>The countywide median price fell to $399,000 in July, down 30.6 from a year ago. Prices were last under $400,000 in March 2003.</p><p>Sales are concentrated among less expensive homes, as falling prices draw in buyers once priced out of the market, as well as an increasing number of investors.</p><p>In July, 68 percent of all purchases were under $500,000 compared with 36 percent a year ago.</p><p>Homes under the half-million dollar mark often have owners who stretched financially through risky loans to purchase around the peak of the last housing boom three years ago, but can no longer afford them.</p><p>Homeowners facing rising mortgage payments are selling properties at deep discounts and banks are clearing out foreclosed homes.</p><p>“We’re seeing multiple offers on almost every bank-owned home that’s in livable condition,” said Timothy Hedges, broker-manager for Prudential California Realty in Sebastopol. “Folks are seeing the opportunities out there. The selection buyers have to choose from is tremendous.”</p><p>But falling prices have discouraged other homeowners from selling if they can’t afford to cut prices and compete with distressed properties on the market. That has led to sluggish sales at higher price ranges because there are fewer move-up buyers.</p>