The Russian River area is a region of Sonoma County that’s it’s own real estate marketplace. The way homes are priced, what they sell for, and what people are willing to pay for homes out here is different than what you would see in other parts of Sonoma County or San Francisco. Millar and Company has compiled a market analysis for you that outlines market trends for December 2014 and compares them to the market conditions from December 2013, in order to show you how the market is changing and what that will mean for you!
Sold Homes vs For Sale Homes On The Russian River.
It is important to first look at how many homes have been listed for sale on the Russian River and also how many homes have sold here. This will help to determine the supply and demand for the area and whether it is a seller’s market or a buyer’s market. According to the graph,(located on the left) taken from the BAREIS MLS TrendGraphix Report, there were 53 homes that were listed for sale on the Russian River in December of 2013. In contrast there were only 21 homes listed for sale on the Russian River in December of 2014. This is a 39.6% decrease in the amount of inventory available on the Russian River and reduced inventory is an indicator of a seller’s market. What does this mean? A seller’s market typically means that there is more demand for property in a specific area than there are properties to sell. This means that sellers are getting more offers on their homes and the competition for each home is higher. In the summer, an average real estate market here in the Russian River area would have about 100-120 homes listed for sale, and in the winter the average would be about 40 homes listed for sale. Since there were only 21 homes listed in December, we are hoping to see a substantial increase in the amount of homes listed for sale on the Russian River in spring 2015.
Average Listing Price vs Average Sold Amount On The Russian River
Another great thing to look at when evaluating the Russian River real estate market is the price a home is listed at, and then compare what that same house is actually selling for. If the average listing price and the average sold amounts are close, that is a sign of a healthy market. It will also help to determine if there is a significant change in the property value here on the Russian River, as well as whether or not many price concessions are being granted to buyers. If the average sold price is continually lower than the average listing price, than the market is moving towards a buyer’s market. However, if the average sold price is repeatedly above the listing price this is an indicator of a seller’s market. In an average market there will be little contrast between the listing price and what homes are actually selling for. According to the graph, (located to the right) taken from the BAREIS MLS TrendGraphix Report, the average amount a home on the Russian River sold for in December 2013 was $285,000, but in December 2014 the average amount on sold homes rose to $440,000. This is another indication of a seller’s market; the price that homes are selling for is climbing back to pre-recession prices due to the low supply and high comparable sales in the area.
What does this mean for buyers and sellers?
If you have been thinking about listing your home for sale on the Russian River now is the ideal time to do so. According to the statistics outlined above we are in a seller’s market, which means that there is a high demand for property on the Russian River and not many homes for sale. Seller’s will be in a better position to receive a great offer on their home. What this means for buyers is that the market is on the rise, and if a buyer finds a home that they want, they will need to place a fair offer from the beginning in order to get the seller’s attention and to let them know that they are serious about buying that home. Coming in under asking price is a trend of the past! In this new competitive market buyers will need to consider their offers carefully.
Local Russian River Real Estate Agent
Regardless of where you are looking to buy or sell a home, you should definitely consider getting a local agent to handle your transaction. This is vital to sellers because a local agent will be able to accent your properties best qualities, and how they are complemented by the area in which you live. Your agent will know of any problems that may arise and what to expect in your area. It is equally important to buyers because a local agent knows the terrain, the community, and the specific market conditions, and will be better equipped to help you make decisions, and to keep you informed of any changes in the market. David R. Millar (BRE#01354778) is a local Russian River real estate agent with years of experience and a deep connection to the Russian River community. If you have been thinking about buying or selling a home on the Russian River call or text 707-217-1786 today. David will help you navigate through this growing marketplace with ease and precision. If you would like to learn more about us check us out on Facebook, Twitter, Google+, and Youtube or Start Searching Russian River Properties For Sale Now!