• Elia Hutchins

How Rising Interest Rates are Cooling Down the Real Estate in Sonoma County

Rising interest rates have caused home sales to cool down in Sonoma County and Santa Rosa. Compared to the same period a year earlier, sales of single-family homes in Sonoma County and Santa Rosa, fell by 12% in March, April, and May of this year.

The average 30-year mortgage rate has increased 1.5% compared to last year, from 3.95% to 4.33%. The rate on a 15-year fixed mortgage has risen even more, from 3.21% to 3.87% over the same period.

This increase has made buying a home more expensive for potential buyers. The monthly payment for a typical home in Sonoma County is about $200 more per month with the current interest rates. An increase of $200 in monthly mortgage payments is a significant amount of money for many people, and it has caused many people to put off buying a home.

The average price of a home in Sonoma County is now $738,000, which is out of reach for many buyers, according to the National Association of Realtors. Home buyers will be looking for homes priced lower than similar homes in the area. They may also be more interested in move-in-ready homes that don't require major repairs or renovations.

What should home sellers expect in the shifting real estate market?

The outlook for home prices in the area is uncertain. Home sellers can expect buyers to be more cautious and less willing to pay high prices for a home. Home sellers will have to be more flexible on price to make a sale. The most important thing for home sellers is the ever-changing real estate market. What works one week might not work the next. The best thing sellers can do is stay up-to-date on market trends and be flexible in their expectations.

Some tips that home sellers should consider in the current real estate market are:

  • Pricing your home correctly from the start.

  • Making your home as appealing as possible to buyers

  • Working with a real estate agent who has experience in the current market

It’s important to remember that no matter what market conditions might be, there will always be buyers looking to purchase a home. If you're looking for an expert real estate agent to list your home for sale, please contact me. I'd love to help you have a swift, simple and stress-free experience!

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