At the beginning of any year, every person would love to look back at where they have been and where they are headed. It is the perfect time to reflect and speculate. This applies in all areas of your life, and real estate market is no exception. If you have plans of buying or selling a home in the Santa Rosa area in 2019, it is important that you take stock of the real estate market in the area. Understanding how the Sonoma real estate market will appear in 2019 is essential. It is also important that you understand what factors would bring any changes in the market. Here is what might be in store for the real estate market in Santa Rosa in 2019.
Home Prices and Home Sales Will Rise
If you carefully study data from Santa Rosa REALTORS, you will notice an obvious trend. Over the previous several years, median sale prices have been observed to rise after every year. There is a significant rise each year if you compare it to the previous year. Since the trend has been consistent in the earlier years, there are low chances that this trend will reverse in 2019 especially if the economy remains strong as it is. In addition to this, it is likely that there will be growth in home sales in the year 2019. Keeping Current Matters compiled a report after taking a poll on different housing authorities such as Freddie Mac and Fannie. According to these authorities, they were expecting more sales in 2019.
Wait Times Will Accelerate in 2019
The LA Times made a comparison of market times for 2017 and 2018. The report of the Times showed that houses stayed for a few days in the market in 2018 compared to 2017. In 2017, houses were sold in about 46 days while they took 44 days to sell in 2018. If the same trend continues, homes will stay on the market for fewer days because buyers pursue the quantity of inventory that is available in the market. However, you should also consider whether market conditions will encourage homeowners to sell or whether a rise in interest rates will discourage the buyers.
A report by Santa Rosa REALTORS also shows that there has been a decline in inventory in the area now for a while. In recent years, inventory has been low in Santa Rosa. Despite the fact that inventory is low, market factors such as total sales and median prices have always been high. This only means that the market is still active even if inventory is low.
Since departing the Santa Rosa real estate scene in 2006, Bill Prestep, a now realtor in Lo de Marcos, Mexico, claims the comparisons in the areas around Puerto Vallarta share similar market conditions to his previous stomping grounds in California. He further added that is pleased he arrived in the area in time before real estate prices really began to take off.
With the compilation of the above insight in to current conditions, we can ascertain where the market will head for 2020. There are variables however. The #1 variable is the current political landscape in the US and the uncertainty it holds for the economy moving forward in to election year.