After four years of rapid price appreciation, there have been whispers of a market correction in the Bay Area, fueled by a wildly oscillating stock market and a depreciation in the Chinese currency, combined with the Chinese government cracking down on money moving out of the country.
The antics in the stock market has prompted some people to pull their money out. Where are they putting it? Real estate.
To get a grip on the local market, let’s look at some of the underlying dynamics.
First, there is a very limited supply of properties for sale. There is next to no single-family homes being built. There is quite a bit of multi-family and high-rise building going on, which MAY, at some point in the future, relieve inventory.
Inventory of single-family homes in Sonoma County has been lower than the year before for forty-five of the past forty-nine months. The good news is those four months of higher sales all occurred in the past four months.