Sonoma County home prices jump 24 percent

  • Mike Caselli, left, of Wine Country Realtors talks with Kathleen Bunte, at her home in Kenwood who recently sold her home to a couple that Caselli was representing. Bunte is represented by realtor Joel Cunningham of Pacific Union International, Wednesday April 17, 2013. (Kent Porter / Press Democrat) 2013

Sonoma County home prices jumped in March as more homeowners with equity put their houses on the market, but sales remained slow due to a decline in short sales and foreclosures.

Buyers purchased 399 single-family homes last month, down 14 percent from a year earlier, according to The Press Democrat's monthly housing report compiled by Pacific Union International Vice President Rick Laws.

The median sales price rose to $396,000, a 24 percent increase from a year ago. The median has now risen for six straight months since last September, when it stood at $355,000.

March sales continue to tell a tale of two market segments: homes with equity and those deemed financially distressed. The latter include bank-owned foreclosures and short sales, where the sales price is less than the amount of the mortgage.

Among homes with equity, activity is up in the county this year. New listings in this segment rose 14 percent for the first quarter, compared to a year earlier. And sales increased 23 percent for the same period.

But listings and sales of distressed properties have been declining for months on a year-over-year basis. Such homes made up just 28 percent of March sales, compared to 53 percent a year ago.

Gerrett Snedaker, a senior vice president for Wine Country Group by Better Homes and Gardens in Sonoma, said he's telling agents who specialized in selling distressed homes to change their focus.

"It's time to switch gears and get back into the equity market," he said.

An unprecedented real estate boom sent the county's median home price soaring to $595,000 in 2005. But prices plummeted during the next six years, sending the median falling to an annual low of $325,000 in 2011.

In the darkest days, three out of every four homes sold in the county were foreclosures or short sales.

© The Press Democrat |  Terms of Service |  Privacy Policy |  Jobs With Us |  RSS |  Advertising |  Sonoma Media Investments |  Place an Ad
Switch to our Mobile View