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How long can the residential real estate market go on like this?

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We are about two years into a national trend of dropping housing supply and increasing sales prices. There are some regional variations to the story, but the shift to a predominantly seller’s market is mostly complete. Multiple-offer situations over asking price are commonplace in many communities, and good homes can be off the market after a single day. It is evident that a favorable economy keeps hungry buyers in the chase. This seems to be the case in Sonoma Valley, where Single Family Homes in July of this year experienced a powerful increase in average sales price over last year. There were a similar number of transactions in July of both years, with a total of 30 sales in July 2017, and a total of 29 sales in July 2016. However, the average sales price for a Single Family Home in Sonoma Valley for July 2017 was $1,173,737, versus $936,000 for July 2016 – and that represents an astonishing increase of 25.4% over July of last year.

There was even a significant increase for the period of January 1 through July 31. The average sales price was $1,060,515 with 223 Sales. For the same period in 2016, the average sales price was $959,127 with 216 sales. That represents a 10.57% increase for average sales price of single family homes in Sonoma Valley year over year. If you are curious about how much your property has gone up, do not hesitate to contact me. I would be glad to do a comparative market analysis.

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