Sonoma County’s real estate market is hot and the time to take advantage of the great deals is now. Even before the recent federal and state stimulus packages were passed the Sonoma County market was heating up. Homes that sold for $500,000 in 2005 were selling for $300,000 in the fall of 2008 and condominiums that had once sold for $350,000 were selling for $150,000, or less! Rates were low and first time home buyers and investors with cash down payments and good credit were jumping into the market.

Now with the $8000 federal tax credit for first time homebuyers, a $10,000 state tax credit spread over 3 years for new construction, and historically rock bottom interest rates the market is in full swing with fierce competition for the best properties. If you are considering jumping into this market, rest assured there are still ample properties available, but you will need to be prepared to act quickly and decisively. Homes and condos in this lower price range (under $400,000 for single family homes and under $200,000 for condominiums) that are in the best locations and in the best condition are sold within a matter of days, often over asking and with multiple offers.

Unlike the frenzy of the housing bubble in 2004-2005 we won’t see prices dramatically increase. There is still too much inventory for that to happen, however, with more buyers entering the market, the inventory is decreasing and the prices are stabilizing. This is truly the perfect time to buy property if you have the cash and can get a loan. If you fall into that category, you don’t want to be looking back 5 years from now saying, “Wow, if only I had bought property then!”


Posted By: Jen Phillips