The road to summer is in full swing and there are 80 units currently active in Petaluma. Current active units 6/4-6/10 in Petaluma West sit at 50 with a median price of 1,037,450. There are 8 new units this week with a median price of 815,500. There are 4 units under contract in Petaluma West with a median price of 799,500. Finally 5 units sold last week with a median price of 917,500.
Current active units in Petaluma East sit at 30 with a median price of 805,000. There are 8 new units this week with a median price of 712,500. 3 units went under contract last week with a median price of 800,000, Finally 7 units officially sold with a median price of 650,000.
Petaluma continues to be a very competitive housing market, but not impossible top get into. With the amount of units we see active we are finally starting to some homes sit on market for 15…30…45 days.
Thanks for Reading
Mike Ward | Petaluma Realtor
What is the main source of wealth for American’s today? The answer is the same one that we have been saying for years, home ownership. Whether you are a home owner in Petaluma or Miami Florida, home ownership accounts for just about 25% of your overall worth. These numbers show us that the American dream, is still the American dream. When asked 7 out of 10 Americans still say that owning a home is their idea of tapping into the American Dream. But the positive benefits of owning a home for each individual also extends itself into the US economy and each local community that these homes are purchased in. Home sales drive our economy and help to build strong communities throughout our country. Home ownership is just slightly under the long-term average number percentage of 66.3%. Today American’s has amassed 14.4 trillion dollars in equity as of last quarter. Housing itself accounts for 12.3% of our countries gross domestic product in 2017. So whether you are looking to buy a home in Petaluma or Punxsutawney, create a plan and execute it to start building equity and wealth today!
Thanks for Reading,
Mike Ward | Petaluma Realtor
What year have mortgage rates rose at the fastest pace within the last 50 years……….. hello 2018 how are you? From January 1st, 2018 to the week ending at may 24th rates have reached 4.66% only to drop to 4.56% this week. This is the highest mortgage rates have been since April 2011 and about 70 basis points above the 3.95 percent rate seen one year ago. During the same period, median home prices in California have also risen by roughly 10 percent, though many areas of the state have seen much higher appreciation.
Still, even with the recent hikes, historical perspective suggests that mortgage rates are still very favorable. Figure 1 illustrates 30-year, fixed-rate mortgage trends going back to 1971 and emphasizes the continual five-decade decline in mortgage rates. The smaller figure zooms in data to the most recent decade and also illustrates the federal funds rate set by the Fed, which impacts short-term interest rates and indirectly mortgage rates.
What does this mean of the average home buyer? There is no crystal ball but economists feel in the short term, through the end of 2018, 30-year fixed rate mortgages are still expected to reach no more than 4.7 percent. Increases are forecasted and expected in 2019 and 2020. In conclusion, yes interest rates are no longer at that mouthwatering number of 3.7 percent we saw a couple years ago, but if you look at this subject though your historical glasses you will quickly determine we are still in a very good spot. As these rates continue to increase we will see a direct effect on our Petaluma Real Estate market and the surrounding markets. So if you were on the fence about buying and you want as much purchase power as possible with your search give me a call today!
Thanks for Reading,
Mike Ward | Petaluma Realtor
There are many factors that add to a strong or weak housing market. The fact that California Unemployment numbers are the lowest they have been in years while the housing Market is the best it has been in years are factors that are impossible to ignore regarding the strength in our local market. I read through the record setting unemployment numbers from different counties in California today and they were even lower then expected. Sonoma County came in at 2.5% and Marin County came in at 2.1%. How does this translate to our current housing market? With California adding 39,300 jobs (Marin 600 & Sonoma 400) in the last month, more families and individuals today have the stability and longevity in the job market to enter into our current housing market. This is great news for sellers and bad news for buyers who have already been battling one of the most competitive housing markets I have experienced in my career.
What outdoor home improvement related to curb appeal has the biggest impact on buyers……lawn care. When it is time for the sale of your home, lawn care recoups 267% of the original cost. On the opposite end of the spectrum the improvement with the lowest return on investment is a swimming pool. Swimming pools only recoup 43% of their original installation costs. 99% of Realtors and Real Estate agree that curb appeal plays a major factor in wooing buyers.
The National Association of Realtors released this month that the average days on market for a home in April was 26 days, which is the fastest pace of sale since NAR started to track data. 60% of all homes on the market sold in under a month! Why? A big factor is the lack of inventory. There were 6.8% less homes on the market in April of 2018 then April of 2017. Are these national averages reflected in the Petaluma Real Estate Market? We have seen this trend first hand relating to Petaluma homes and Petaluma Condo’s. In my opinion is a home or condo is priced right it is unlikely to stay active longer then 10 days in our town. The off market deal is more valuable then ever!
Thanks for Reading
Mike Ward | Petaluma Realtor
