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Jeff Schween for The Press Democrat – When Doves Cry…For Real Estate

When Doves Cry…For Real Estate

This week marked the passing of a musical icon, Prince. Born Prince Rogers Nelson he shook up the musical world at every turn while breaking barriers along the way. Confident and usually surrounded in controversy, he moved about his business like a trailblazer weaving creativity with risk to unearth greatness. Much like the prowess of such an iconic personality those in pursuit of their real estate dreams must dispense with traditional thoughts in order to achieve a purposeful breakthrough.

There are many traditional ways to evaluate a marketplace. These benchmark analytics showcase tried and true logical ways to assess illogical and risky moves, but only from a historical perspective. The success that you want to gain will only be able to be measured in the past, thus requiring you to blaze a trail based upon your own confidence and beliefs about what your future will be. Accumulating knowledge along with capabilities are vital to conquering the markets.

One of the most common components of measuring value is priceper- square foot, a calculation based upon recent averages of perceived similar homes in a perceived similar market area. This metric is routinely applied to appraisals to justify valuation for what a market buyer and seller have come to terms with in fostering an agreement and thereby supporting the new lender’s position in the property as secured.

According to data collected by BAREIS MLS, a current overview of Sonoma County indicates an average sold price-per-square foot (psf) of $377 for a single-family home – a significant seven percent pop from March 2015. With diamonds and pearls being out of favor, the real estate markets reported a 12 percent jump in the median property value to $570,000.

Topping the charts around the Redwood Empire, Cloverdale kissed the pinnacle of success as the gain in its price-per-square foot reigned supreme at $324psf for a single family home – a 41 percent boost from the prior March – brushing past the Westside of Petaluma for the front runner spot as this submarket surged 26 percent to close out the month at $465psf. The town of Sonoma was putting down its own funk delivering a nine percent move itself to $510psf closely chased by Northwest Santa Rosa with an eight percent rise to $309psf.

Buyers found homes to park their little red corvettes in on Petaluma’s Eastside for $339psf – a royal six percent above last March – while both Oakmont and Windsor buyers tossed their raspberry berets onto new porches at a cost of $354psf and $298psf, respectively – both five percent higher than last year. Buyers in Sebastopol got to go crazy over having to bid up prices in the West County to more than four percent from last March bringing this region up to $406psf while the sign of the times in Northeast Santa Rosa, Rohnert Park and Cotati gave way to an increase of three percent bringing values to $355psf and $305psf, respectively. Delirious with parity, both Southeast and Southwest Santa Rosa were in line with last year’s results reporting $319psf and $283psf.

With the drought still upon us and no purple rain in the forecast, doves were crying in Healdsburg as this submarket got creamed as it reported a 16 percent slide in this metric to $513psf. Keeping the region company, the Russian River area was partying like it was 1999 until this month when it gave back six percent and reported values at $340psf.

Have your own iconic experience this Spring by blazing a trail that the morning papers will report on knowing the mountains you had to overcome in achieving your own personal success in real estate and know that I am pulling for you to win.

Jeff Schween

By Jeff Schween, of Pacific Union International’s Santa Rosa office.