Q4 Wine Country Market Update – Sotheby’s International Realty
A Message from Jonathan Soh – Brokerage Manager
The fires of October 2017 seriously impacted the local housing market by destroying roughly 7,000 homes, however, we as a community have come together in force to place families in new homes or temporary housing and have shown tremendous support throughout these challenging times. The full effects remain to be seen, but, according to the Bay Area Real Estate Information Services, immediate activity in Q4 2017 showed a marked increase of home purchases since October 2017. The Santa Rosa/Windsor market, one of the hardest hit by the fires, had a 12% increase in Sales Volume from $269 million in Q4 2016 to $300 million in Q4 2017 and experienced a 12% increase in Average Selling Price to $722,000. The Sonoma Valley market had a 9% increase in Sales Volume from $99 million in Q4 2016 to $108 million in Q4 2017 and experienced a 10% increase in Average Selling Price to $1.2 million. Another hard-hit market was the City of Napa which experienced a 4% increase in Sales Volume from $157 million in Q4 2016 to $164 million in Q4 2017 and an 18% increase in Average Selling Price to $857,000.
Despite the fires, the City of Healdsburg continued to flourish during the 4th Quarter of 2017. Sales Volume increased 42% from $46 million in Q4 2016 to $66 million in Q4 2017 and Average Selling Price increased 8% to $1.2 million. While not directly hit by the fires, Healdsburg became a retreat for many displaced Santa Rosa residents. It is a very popular second home market and it is encouraging to see buyers continue to invest in the Wine Country region.
We invite you to review this edition of the Market Update, a robust analysis of the Sonoma Wine Country real estate market.