When talking with my friends, my neighbors, and people coming through my open houses, the number one question I get is “How’s the real estate market?” My simple answer is “It’s Dynamic!” A quick search on the internet gives a meaning of dynamic as characterized by constant change, activity, and force, often implying energy, progress, and adaptability. Yes, that about sums up the real estate market.
A Seller’s Market is when the number of buyers greatly exceeds the number of properties in inventory, which results in multiple offers and purchase prices higher than list prices. We saw this in Sonoma County in 2021 and 2022 when more people were working from home or relocating closer to family. Typically, if there is less than a month of inventory, it is a seller’s market.
A Buyer’s Market is when there are so many properties listed that buyers are in control. This happens when there are more than 6 months of inventory of properties.
A Balanced Market is where the number of properties available matches the number of buyers. Both the sellers and buyers are relatively on the same footing. Buyers can take some time to do their due diligence in the purchase of home, make sure that it meets their needs, and that it is appropriately priced. In Sonoma County, we are currently in a balanced market.
When you are ready to sell your home, a licensed real estate agent can guide you through the process, help you determine what improvements you might consider to showcase your house, provide market value analysis of your home to help you set an appropriate list price, and market your home to get the best value and a quick sale.
When you are ready to buy a home, a licensed real estate agent will walk you through the process, provide helpful resources, including lenders, inspectors, and contractors, and help you find that perfect home, and work with you to negotiate the best price for your new home.
So, how do you find out about what is happening in the real estate market? National publications and websites capture a national perspective of the real estate market, but not the local real estate market. Your local real estate agent has the pulse on the local market. As a member of the North Bay Association of REALTORS, I attend the weekly marketing meetings, where agents pitch their property listings, local industry experts share their perspectives, and we discuss what is happening in the market.
