In The News

Jeff Schween for The Press Democrat – 45

45

Rhodium’s atomic number is 45 and essentially used as an inert metal to both resist corrosion and to plate other metals to protect their brilliance. 45 is also known as a card game or the direct dialing code for Denmark. Some refer to 45 as a caliber of ammunition while others consider it the sapphire wedding anniversary. The elders of our time even remember the vinyl record known as a 45. More simply, 45 is the natural number following 44 and also the newest president of our United States.

Whether you perceive the upcoming presidency and times we are about to embark on as threatening or hopeful, compelling or defeatist you still have to show up in your own personal economy upholding your very own and deliberate personal standards. The noises far afield can inspire as much as derail if you allow it, the winner in it all can be you should you cling to immediate relevancy and those things you can actually impact like your family or home. To manage your success of the latter you must stay vigilant on the most local dynamics within the market you seek to participate while giving moderated value to those more national or global events that may have very little tangible effect on you today.

According to BAREIS MLS, the entire Santa Rosa marketplace is still exhibiting greater compression within its’ real estate markets than even a year ago – meaning fewer new listings yet still a greater percentage volume of sales. As 2016 came to a close there were exactly 157 single-family homes remaining for sale in the city and its environs. The municipality welcomed merely 72 new listings to the market during the month – seven percent less than this same time last year – while 101 units garnered accepted offers – comparatively five percent more than December 2015. Buyers acquired new keys on another 120 homes by the end of the month, leaving the city with a months’ supply of inventory (MSI) of 1.3.

MSI is the metric that indicates the number of months it would take to sell the current inventory at the current rate of sales. An MSI ranging from 4.0 to 6.0 is generally indicative of a balanced market, with lower numbers increasingly favoring sellers and vice versa.

Getting down to the underlying specifics, Northeast Santa Rosa saw the introduction of just 16 new homes in December – an astonishing 48 percent fewer than the same time last year – leaving an available supply of 68 units for sale by months end. Buyers embarked on 30 newly initiated deals while sellers received closing checks on the sale of 39 homes – 35 percent off from a year ago and clearly a function of paltry supply. This allowed the MSI to register 1.7 further echoing continued tightness in the markets with respect to available homes.

Comparatively in Southeast Santa Rosa, there were merely 23 single-family homes available as January set upon us – 43 percent less than a year ago. This submarket gladly welcomed 11 new listings during the holiday season while buyers garnered accepted offers on 18 more properties. With depleted inventories being the continued saga, sellers still managed to transfer keys to 26 new owners – leaving this submarket with an MSI of 0.9 – Santa Rosa’s tightest region.

Oakmont continued to be hampered by sellers showing up lightly within its’ market as only 10 new listings arrived during the month. The typical availability of homes to consider for December was off 11 percent from the prior year – showcased by the mere 17 unit’s available as we launch into the new year. Buyers secured the promise of just eight new deals this month as sellers triumphantly closed 11 transactions leaving this market with an MSI of 1.5.

In contrast, Northwest Santa Rosa was showered with 27 newly listed properties during the month – 170 percent more than twelve months prior. This increase was met with immense voracity as buyers took notice and quickly placed 34 dwellings into contract – 79 percent more than in 2015. Sellers completed sales on 31 different properties leaving this submarket with 32 available units to open 2017. All this activity still showcased a tight MSI of 1.0 – clearly delivering the market message that if you bring it, then the buyers will come.

Not as frantic as its neighboring region to the north, Southwest Santa Rosa saw sellers deliver a mere eight new offerings during the month – 50 percent less than the prior December – while buyers still capitalized on any availability by seizing 11 new deals. Sellers comfortably closed another 13 sales thereby allowing only 17 homes to carry over into 2017 for waiting buyers. Registering an MSI of 1.3, this market continues to wonder where new supply will come from.

45 years from now what will we be talking about? 45 days from now will you have the keys to your next home? 45 minutes from now, what one thing can you do to impact your future?

By Jeff Schween, of Pacific Union International’s Santa Rosa office.