August set another real estate record in Sonoma Valley – marking the third month in a row – during these strange pandemic months. Listings and days on market were down from a year ago, but prices were up, and they were up a lot!
The number of listings on the market was down by 48% (215 in 2019 vs. 167 in 2020) and the median price of properties that were reported sold in August were up 46.2% ($1,389,000 in ’19 vs. $1,449,000 in ’20). In addition, the median price of the properties in contract was up 52.5% – remembering that these are not final sales prices, but are the listing prices of the properties that are in escrow.
The median price of the sold properties in August is also up a whopping 21% over the average median for the trailing 12 months ($916,000). It is also the second highest median sales price year-to-date only surpassed by June, 2020 which was also a record month for the Valley.
Compared to last year, the median list price of properties was up by only 4.3% from $1,389,000 to $1,449,000, which is not quite as dramatic as the ‘in contract’ or sold prices, so it will be interesting to track throughout September what those prices will be.
The impacts that so many have experienced of the quarantine – of working from home, of home-schooling our children, of trying to connect through video conference calls – have made many people look at their lives in very different ways.
Based not only on anecdotal evidence, but on studies performed by regional and national real estate organizations, what has occurred during the pandemic’s “shelter in place” requirements is that many people are not only evaluating their living situations and finding them ‘wanting’, but we are experiencing a truly transformative time in which people are making dramatic changes in their lives.
September is on track to be another very strong month and we will have another full quarter of data to look at. The last quarter of 2020 and the first quarter of 2021 which are both traditionally much slower periods than Qs 2 and 3, will be interesting to watch to see how they compare to previous years’ data. Stay tuned.