In the aftermath of the North Bay fires in October/2017, what has happened to the market?
I put Santa Rosa under a microscope and here is what I found.
- Median Prices have increased about 10% since pre-fire.
- The number of Sales is declining, after a bump shortly after the fire.
Demand for housing increased dramatically after the fire. Thousands of Santa Rosa residents were burned out of their homes and needed immediate shelter. This drove up demand, significantly, as there were not enough hotels, relatives and friends couches to support this increase in demand, especially for more than anything very short term.
The decrease in sales is a combination of seasonal, normal decline’s, the reduction in the housing stock and probably people putting their plans to sell on hold, after the shock of the disaster, winter weather and the holiday season. This should start to increase in the next few months.
DOM has been fluctuating. The bump in November is likely due to sales not going into escrow during the actual fire period.
The LP/SP ratio has started to level off, but increased significantly right after the fire, as buyers paid premiums to secure permanent housing.
The upcoming Spring selling season should be very busy in Santa Rosa, with more buyers than sellers. We will likely see continued price increases, although at probably a diminished rate.