This is the question that is on many minds in the North Bay after several years of fires, evacuations, power outages, and poor air quality. The answer isn’t easy. With a global pandemic and economic upheaval facing us almost everywhere we turn, the solution might just be to stay put. On considering the alternatives, most North Bay residents conclude that it’s hard to beat the beauty of the area they have come to know and love, as well as the community formed.
The “Great Reshuffle” prompted by the remote workers moving into the North Bay and the fire weary, longtime residents exhausted from the fire threats moving out has created a very active real estate market over the past couple of months. The bottle neck continues to be the lack of inventory.
The only segment of the Sonoma County housing market that seems not to have been impacted by this lack of inventory is the luxury market. Sales in the $2 million and above price range surged in the third quarter to 100. The average was about 30 sales in the second quarter of 2020 as well as in the past four years.
While Napa County’s luxury sales for the third quarter didn’t show as much growth, it still managed to increase from 48 homes exchanging hands compared to an average of 26 over the past four years.
Since 2016, Sonoma County has shown consistent growth in the housing market for the Fall quarter. The median price now stands at around $715,000. Some San Francisco and South Bay buyers are finding this price point attractive when compared to their rents.
At the time of writing this blog, a few weeks of possible fire threats remain, and this continues to fan the “fire fatigue” experienced by many in the North Bay. As one agent who was burned out of her home in the Tubbs Fire of 2017 put it, “There are problems in every other area you can think of, and most I have talked to don’t want to leave friends and families.”
So, what can we expect for the North Bay housing market during the last quarter of 2020? It is anyone’s guess, but Sun Pacific Mortgage has been here for three decades and we are continuing to see a strong need and demand for hard money lending throughout these trying times. If you are looking to refinance, needing a bridge loan, or purchasing property without meeting the stricter guidelines for Covid-19 mortgages, give us a call at 707-523-2099. While we can’t make the fires go away, we can make your mortgage woes less worrisome.