According to North Bay Luxury Real Estate there’s no questions that we are entering a sellers’ market in the North Bay. Please watch the video above, or read the transcript for it here:
“Hi there, Tracy Otsuka at Sotheby’s International Realty, you know, we are officially in a seller’s market in the North Bay. It’s happening all across the state. When the Sunday LA Times is calling Bakersfield a boomtown, you know that there’s something going on and the rest of the state needs to get in on it. In the North Bay, we certainly have done that we’ve literally seen it happen overnight. We started to see a bit of an uptake in February and March, and since then, starting with May the market has just completely taken off.
Our medium price sold is up, our demand for second homes are strong. In fact, six percent of all real estate purchases currently, are being made by international buyers, inventory is down 46% in Sonoma County, 30% in Marin County compared to last year this time and this cuts across all categories. Whether it’s a traditional equity sale, an REO, or a short sale.
We just don’t have any inventory; in fact, the average number of offers is four to five pretty much across all price points. We’re seeing a little tapering off at the 1.5 million mark and there you might see one offer or maybe two if you’re lucky, but anything less than that, multiple offers. When you have one to four months of inventory, prices are appreciating and last year we were at about 4.3 MSI in Sonoma County and 5.2 in Marin County. Today we are at 1.1 in Sonoma County and 2.4 in Marin County that indicates a very strong seller’s market.
What happened? Who knows, I mean economics are basically the same today as they were last year at this time. The only thing I can figure is it’s a herd mentality. We are basically herd animals and I guess five years austerity was as much as anybody could take. Mortgage rates are the lowest they’ve ever been. If you’re thinking about buying a more expensive home whatever you may think you’ve lost in the sale, if you’re looking back at what you could have sold for in 2007. You’ll definitely make up for it in the interest rate because they are literally half of what they were in 2007. Of course, that’s if you’re financing a purchase.
I would love to hear your comments. You can e-mail me at tracy@tracyotsuka·com. Have a great day and we’ll talk soon. Bye-bye.”
Tracy Otsuka is the premier real estate agent for luxury real estate in Sonoma and Marin Counties, in San Francisco’s North Bay.
Please leave comments below, or call 415-668-2020 or 707-769-4278 today.