Touch of Dutch - Love where you live
As always, numbers tell the story.?An overheated market cooling or normalizing, slowing from an unsustainable rate of acceleration, does?not necessarily imply a weak market by historical standards, even if the speed and scale of the change are?startling. Below is a link to the July 2022 Sonoma County Real Estate report.?
This report will review year-over-year changes in supply and demand, reflecting the significant?adjustments occurring, but also longer-term trends to provide greater context to these recent changes. The impacts of this year's severe economic headwinds - soaring inflation and interest rates, stock market?declines, fears of recession - on Bay Area real estate markets are starting to show.?
?Especially after one of the longest, most dramatic upcycles in history, the psychology,?circumstances, and plans of individual buyers and sellers shift unevenly in the early months of a transition?as they try to make sense of changing market realities. Eventually, statistics based on closed sales - prices,?appreciation rates, overbidding, days on market - slowly start to adjust. Looking at the numbers, the degree of any actual, longer-term "correction" to prices, if it?occurs, remains to be seen.?
For example: in June 2021 we saw the year-over-year appreciation rate at 20%, in June this year this is at 4%, closer to pre-pandemic levels. Combine that with new listings coming on the market 24% down from June 2021 we are not seeing telltale signs of a crash but more of an overheated market cooling or normalizing.?
Here is the link to the full report,?as always, feel welcome to reach out as to how this information affects you.