Overbidding has become a common catch word in real estate, with resolute, prospective buyers showing over time that they’re willing to pay over asking price. The trend has accelerated in the last few years since the pandemic took hold. In May 2020, 25% of the offers were over the listing price. Three years later, 55% of the bids were over.
Listings are low all over California and across the nation, insiders have indicated. Therefore, home sales are fewer in numbers by about 20%. One North Bay County, Sonoma, knows the pain of the housing shortage, lacking about 38,000 units to provide adequate shelter for its residents. Still, home sales are still happening as the demand refuses to subside.
We just need to look at the median home price in the following cities to realize that the “supply and demand” principle is alive and well in the North Bay.
2023 Sonoma County median sales price
-Sea Ranch: $1.3M
-Healdsburg & Bodega Bay: $1.2M
-Penngrove & Glen Ellen: $1.1M
-Santa Rosa: $943,000
-Petaluma East & West: $925,000 & $850,000, respectively
The heavy demand and lack of resale property has forced the average days on the market to plunge in a 3 ½-year period, from a high of 88 days in January 2020 to 40 in May 2023, according to the Compass analysis.
For those hopeful homebuyers and Investors, if you are looking to increase your odds with a stronger purchase offer, or you want to get in on those fix & flips or up & coming newly constructed homes but having difficulty with mortgage approval elsewhere, try reaching out to Sun Pacific Mortgage & Real Estate. We have been lending in California for almost 36 years, are family owned & operated and are trusted by over 10,000 borrowers & buyers. We are happy to help when we can! Find us at www.sunpacificmortgage.com or call us at 707-523-2099.