In The News

Jeff Schween for The Press Democrat – The Boroughs Of Santa Rosa

The Boroughs Of Santa Rosa

New York City is the unification of five separate boroughs – the Bronx, Brooklyn, Manhattan, Queens and Staten Island – that were combined into one massive metropolis in 1898 in which today commands a population of nearly 8.5 million people. This city is no stranger to politics nor the whims of both the financial and real estate markets that function so mightily there. Similarly – though on a scale of population approaching only 170,000 residents – the regions within the city of Santa Rosa offer something a bit different in each of its five regions.

According to BAREIS MLS, as Autumn has helped our foliage to turn and shed its leaves, the entire Santa Rosa marketplace continues to experience greater compression in its’ real estate activities than even last year – meaning fewer new listings yet still a greater percentage volume of sales. As September closed there were exactly 273 single-family homes remaining for sale in the city and its environs. The municipality welcomed 145 new listings to the market during the month – 37 percent less than this same time last year – while 174 units garnered accepted offers – six percent fewer than in 2015. Buyers acquired new keys on another 174 homes by the end of the month, leaving the city with a months’ supply of inventory (MSI) of 1.6.

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, the borough of Northeast Santa Rosa saw the introduction of 50 new homes in September – a staggering 35 percent fewer than the same month last year – leaving an available supply of 116 units for sale by months end. Buyers climbed into contract on 78 new purchase agreements – 11 percent above last September – while sellers were able to conclude sales on an additional 60 properties during the month – holding the MSI steady at 1.9.

Comparatively in Southeast Santa Rosa, there were 59 single-family homes available as the month wrapped up. This submarket experienced the debut of just 22 new listings during the month – a hearty 57 percent departure from levels seen last year – while Buyers garnered accepted offers on 30 more properties. Even with the more constricted availability of homes, sellers were able to complete the sale of another 27 units during the month – amazingly 17 percent more than in 2015 – leaving this borough with an MSI of 2.2.

Oakmont, better attributed to as the senior borough, marched through the year at a brisk pace – though with sellers showing up in fewer numbers than usual. The typical availability of homes to consider for the month was off 28 percent from the prior year – showcased by the mere 21 unit’s available leading into October. Buyers chased down 14 new deals this month as sellers confidently closed 12 transactions while only 15 new properties came into the market to replenish those snapped up by buyers. The data from Oakmont indicates an MSI of 1.8 – still a market out of balance.

Northwest Santa Rosa exhibited continued pressure on the front lines of real estate in September. Sellers in this region brought 41 new properties to market – 34 percent fewer than 2015 – as buyers promptly jumped into contract on 34 new deals – 33 percent less than a year ago. This submarket was left with 53 homes to open October after seeing buyer’s complete sales on 52 different properties steadying the MSI at 1.0 – still leaving numerous buyers stranded without a seat to occupy.

Southwest Santa Rosa seller’s had continued success bringing 17 new homes to the market as buyers hurdled over one another to get into contract on 18 deals. This borough saw another 23 units complete the formal transfer of ownership and roll into October with only 24 homes available to those on the hunt for their new place – ushering in continued stress as this submarket rests with an MSI of 1.0.

New York City may have its size, glitz and global reputation but it lacks the quiet and highly desirable locality of Santa Rosa’s calm culture, mild weather and getaway lifestyle. So maybe the similarity ends at the five boroughs analogy? Never the matter, we live in an environment with extremely low interest rates, a burgeoning economy and great proximity to many desirous things – now get out there and acquire yours.

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