Buyers: Sell your home now

This article is reprinted from Wine Country Real Estate, a special advertising section of The Press Democrat.

Sell your home now. That is what buyers are asking for. As spring continues to unfold, the housing markets remain in drought conditions, especially as it relates to the available supply of housing within Sonoma County. This is not a new story. Nor is it the last we will be hearing about this predicament. Sonoma County is experiencing population growth, an improving economy and demands from those outside the area wanting to obtain their own piece of wine country real estate. Calculating these and numerous factors into the equation of evaluating home prices can leave most people scratching their heads.

Understanding inventory trends in Sonoma County submarkets may help you fill the void left by macro analysis of the nation, state, and region. According to BAREIS MLS, there were exactly 702 single-family homes for sale as April came to a rest – 454 of which were newly introduced to the market during the month. Sonoma County had 547 units receive accepted offers in April while 430 homes formally traded hands, leaving the county with a months' supply of inventory (MSI) of 1.6 – good macro information. MSI is the metric that indicates the number of months it would take to sell the current inventory at the current rate of sales. An MSI ranging from 4.0 to 6.0 is generally indicative of a balanced market, with lower numbers increasingly favoring sellers and vice versa.

Getting down to the details in the town of Sonoma, which submarket includes the hamlets of Kenwood and Glen Ellen, there were 102 homes reported for sale as April closed out – 24 percent less than the same month last year. This region experienced the addition of 47 new properties during the month – 42 percent less than April 2014. Buyers in the valley rushed in and contracted with sellers on 64 new purchases while 50 homes formally traded ownership – allowing the MSI to slip downward to 2.0 and forecasting more pressure on prices to rise.

As April's data filled in the charts, Healdsburg's inventory climbed to 55 properties being offered for sale. Properties just listed on the market accounted for 28 of these while buyers weighed in and picked up 27 new deals – more than any month in the prior twelve. This submarket formally granted new ownership of 19 homes in April thereby allowing the MSI to ease back to 2.9.

In Petaluma, residents of the city's west side were selecting from only 36 available homes by months end – 25 of which were introduced to the market during this same period. Fortuitous buyers managed to place contracts on 29 homes – 45 percent more than the prior April. Westside sellers were able to conclude sales on 21 properties effectively holding the MSI steady at 1.7.

On the east side of Petaluma, April welcomed 35 new properties to the market which allowed the supply of available homes to rise to 42 as the month concluded. Eastside sellers inked 31 new contracts with buyers, and this submarket had 25 homes complete the transfer of title sending the MSI up to 1.7.

Traveling up the Highway 101 corridor, the combined markets of Rohnert Park and Cotati ended April with only 16 single family homes for sale, which included 22 properties that came to market during the month. Buyers came to terms with sellers on 32 homes while sales were completed on 25 more, leaving this submarket with an MSI of 0.6 – echoing the need for new supply and dictating higher prices in the near term.

Sebastopol checked in with an availability of 42 single family homes, of which 22 were listings making their debut in the market – 37 percent less than twelve months ago. Sellers in Sebastopol ratified 23 new contracts with buyers as 19 sales concluded allowing the MSI to rest at 2.2 – emphasizing the lack of sellers in this sub-market.

As the calendar closed on April, Windsor had 24 homes available on the open market which included the addition of 28 newly listed properties during the same period. Buyers in the market snapped up 31 new deals - the most of any month over the prior year. Sellers also completed sales of another 27 units allowing the MSI to sink back to 0.9 – representing one of the most competitive markets in Sonoma County.

With inventories in constraint, interest rates still low and demand increasing you must, as uncomfortable as it may seem, get out in front of the wave. As you dive into the statistics, while watching the trend lines, you may find your answer in the vison you see. This in turn, provided you act on what you learn, will empower you in your decision making process that will consequently lead to your own good fortune…others call it luck.