Our special guest speaker for November 15th was our own wonderful and talented Past President (and current Secretary), Mike Kelly.
Real Estate Bubble Getting Ready to Burst? (Or was that just a hiccup?)
Mike, who can be heard every Sunday, 9 to 10am pst, on KSRO 1350AM or 103.5 and 94.5FM, spoke about the current real estate market and how it is shifting gradually to a “balanced” market. Sales of Sonoma County homes plummeted 32% from August to September.
The median home price was FLAT year over year in October—that got everyone’s attention! We have a “Demand” problem with buyers holding back due to interest rate increases, dearth of homes on the market and general, long term unaffordability.
Sonoma County has a major affordability issue as does the bay area in general. Here in Sonoma County only 1 in 5 Sonoma County residents can afford a median priced home. That’s a huge problem, especially given the interest rate hikes. While Sonoma County prices are still more affordable than some Bay Area counties, the affordability gap is shrinking.
Mike suggests that the best real estate buy in the Bay Area is in Solano county and the city of Benicia! No, really! Solano County’s median home price is still below $500,000. Mike, however, believes that the Sonoma County real estate market prices are beginning to come back to reality. Prices have softened, with buyers wanting “deals” or “value-added” listings—Sellers offering closing costs credits, VA or FHA financing, interest rate buy-downs. He also believes that until we build more housing, especially affordable housing, the market will remain impaired.
