IS SOLANO COUNTY POISED for explosive growth in home values? According to Realtor.com, the county is presently the seventh hottest market in the nation.
“We are now firmly in the time of the year when peak demand and peak inventory levels typically occur, through spring and early summer,” wrote Jonathan Smoke, Realtor.com chief economist. “Buyers should expect substantial competition, especially in the hottest markets, and for affordably priced homes within most markets.”
Searches on the site were at an all-time high in March, with over 50 percent more page views than March 2014. It ranked the top 20 markets in the U.S. based on searches for each market and Solano County ranked seventh in listing views relative to the number of listings in each market.
The number five market in their research is Sonoma County, and the only other top-10 market in California was San Diego coming in at number eight.
What makes this information interesting is the March existing homes sales report, also issued last week from the California Association of Realtors (CAR).
According to information collected from more than 90 real estate associations and MLSs statewide, sales of existing homes were up 6.3 percent in March when compared to February.
The median home price increased 9.2 percent in March, to $468,550. And the nine-county Bay Area’s median home price now stands at a whopping $809,200, an increase of 9.3 percent from February and 11.4 percent year over year.
Solano County’s median home values rose 10.5 percent year over year, right in the middle of the pack at number five for the nine-county region, below San Francisco, Alameda, Contra Costa and San Mateo counties but better than Santa Clara, Sonoma, Marin and Napa. The median sales price for existing Solano homes now stands at $345,100; Sonoma, the next lowest-cost market in the Bay Area, is $519,500 — almost 44 percent higher than Solano. In neighboring Central Contra Costa, the median sales price is $784,950, more than double the median price in Solano County.
I frequently work with buyers in Central Contra Costa. If what I am seeing is any indicator, there is an extreme shortage of homes, particularly for homes that are typically sought by first-time home buyers and below the median sales price for the area. I had one recent case where the buyers were outbid a number of times and were finally successful offering $450,000 for a property that was originally listed at $410,000.
So how long will it take for frustrated home buyers to figure out that crossing the bridge is not so bad after all? If the number of searches for homes is any indicator, many of these home buyers are finally checking out Solano neighborhoods. Given its very low values when compared to neighboring communities, 2015 just might be a very good year for the county.
Guy Benjamin (CAL BRE License #01014834, NMLS 887909) writes a weekly column for The Herald, offering general information on real estate matters. As it is impossible to address all possibilities and variations, he will try to answer individual questions by readers who contact him at 707-246-0949 or guyb@fairwaymc.com.
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