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Sonoma Area Home Prices Expected To Rise

Real estate website forecasts prices to increase for 2013 in all but one Bay Area zip code

Home prices in parts of the Sonoma Valley will rise nearly 10 percent this year, according to a study conducted by an online real estate site.

Zillow.com expects home prices in 244 of the 245 zip codes in the Bay Area to rise in 2013. The only exception will be the 94515 zip code in Calistoga, according to a story in the San Francisco Chronicle.

The story suggests that the primary reason for the price increase is the tight inventory, a lack of homes for sale on the market.

But even with the increase, prices remain significantly below the peak prices of a few years ago.

Here is the individual zip code data for the Sonoma area, including Glen Ellen, Kenwood and Schellville.

Zip Code Dec. 2012 median Dec. 2013 projection Increase % decrease from peak price 95442 $516,200 $566,185.35 9.7% -29.8 percent 95452 $618,800 $679,672.95 9.8% -29.8 percent 95476 $429,300 $467,258.17 8.8%  -36 percent

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Dee Baucher February 22, 2013 at 08:35 PM
Now here is something unusual. (Not!) Real estate brokers who are pushing a narrative of rapidly rising real estate prices. Where have we heard this song before? Oh yeah....during the last "hype" which led to our national economic collapse. The Patch needs to re-think the inclusion of this type of unethical and self-serving "press".
Ralph Hutchinson February 22, 2013 at 09:06 PM
I'm thinking a little longer term for a real recovery. Its true, Sonoma Valley will always command premium prices given its location and charm. Dee is onto something though, surveys of Realtors and even most Economists are biased. They always say "things are looking up" or "now is the perfect time to buy" as they generate commissions from sales and closings. They have inherent conflicts of interest. Like asking the Fox if the Hen House is locked down for the night. Ask some bankers what they think as they are the ones lending on homes particularly the Jumbo markets. They are usualy a little more objective. Its gotten so bad even the Fed and the Government or Wall Street hype things wishing people would buy and the economy would pick up trying to trick the masses into thinking everything is fine and increasing consumer confidence.
Ralph Hutchinson February 22, 2013 at 09:09 PM
I'm hearing LTV's are still way off and people can't get loans refinanced which suggests prices still way off from previous years. The Obama loan programs are mainly geared for conforming loans and California has too large of loans so our deals are typically jumbo's and that market is still plagued by under water positions where the home values are beneath the current loan balances.

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