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Local real estate makes comeback in 2012

Buyers purchased $2.5 billion worth of Sonoma County houses and condominiums in 2012, the most spent in six years.

Spending jumped 25 percent from a year earlier, according to The Press Democrat's monthly housing report compiled by Pacific Union International Vice President Rick Laws. Total sales of condos and houses grew 13 percent, but spending rose even higher because of an increase in sales of more-expensive homes.

Brian Connell, broker/manager at Frank Howard Allen in Santa Rosa, called 2012 "a good comeback year" after the county's annual median price bottomed in 2011.

"We're seeing some normalcy creep back into the market," Connell said. "Which is nice, because it's been a while."

Buyers purchased 5,381 single-family homes in Sonoma County last year. The median price for those sales equaled $350,000, an increase of nearly 8 percent from 2011.

Sales of single-family homes increased 16 percent from 2011, amounting to the largest total since 5,919 houses were purchased in 2005.

That year the median price of a single-family home soared to $595,000. It marked the height of an unprecedented real estate boom, with the total sales of county condos and houses reaching a record $4.4 billion.

But prices plummeted during the next six years, sending the median to an annual low in 2011 at $325,000.

Part of that lengthy price decline was because of a sharp drop in the sales of homes priced at more than $500,000. Such sales remained relatively scarce for several years, while investors and other buyers focused on purchasing lower-priced starter homes.

But in 2012, those trends reversed.

Sales dipped 5 percent from 2011 on properties priced at less than $300,000. But for those priced at more than $300,000, sales rose 30 percent. And home sales for those more than $1 million increased 43 percent.

The nation's housing market also showed signs of improvement.

"For the first time in almost six years, most U.S. markets experienced sustained increases in home prices in 2012," Anand Nallathambi, president and CEO of CoreLogic, said in a statement Tuesday. "We still have a long way to go to return to 2005-2006 levels, but all signals currently point to a progressive stabilization of the housing market and the positive trend in home price appreciation to continue into 2013."

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