Despite the challenges of the last few months including the Coronavirus, the hostile political season, the racial unrest, and the roller-coaster economic news, the real estate market in the Sonoma Valley continues to outpace the same period last year and remains extremely strong. There is no doubt that home has become a touchpoint for people as they seek security and comfort during these uncertain times.
Looking closely at the numbers, we find that the listings in October 2020 continue to be below the number of active listings in the same period last year – from 194 to 166, a 14.4% decline. Lack of inventory in all price ranges continues to be one of the challenges for many buyers. The median list price of those listings came in slightly lower year over year – approximately 9% lower and was just a fraction lower than last month’s median price.
The number of listings under contract in October was up this year by a whopping 132% from 25 last year to 58 this year and the number of closed sales also increased from 33 to 46, a 39.4% increase. Surprisingly, the median price of the closed sales was down – but only around 6% from $1,025,000 in 2019 to $963,000 in 2020.
Finally, one other factor that we track - the days on market - is a strong indicator of the pace of the market. A 67.6% decrease year over year, from 102 days to 33 days shows the intensity of the market. It can be further assumed that strong lending practices and many cash sales have had an impact on moving that needle by that extreme.