Sonoma Valley real estate ‘slow’ but still selling

The real estate market is slightly down compared to the same time last year, and the effects of coronavirus and the related shelter-in-place rules will not be apparent for several weeks given the cycle of the industry.

But local experts have an optimistic view of the future.

From the time period of March 1 to May 8 in the Sonoma Valley area – which includes the City of Sonoma, Glen Ellen and Kenwood – 63 properties were sold compared to 80 properties sold during the same week in 2019, according to David Kerr, associate partner of Terra Firma Global Partners in Sonoma.

It’s a “little slower,” Kerr said, but the numbers can be deceiving because “some of that was in process already” before the shelter-in-place orders were announced in mid-March.

There are 23 properties under contract right now, which Kerr said is “pretty low,” and “about half what we should have under contract.”

“Things have slowed down,” said Kerr, who is also on the board of the California Association of Realtors; past chair of the Sonoma chapter of the North Bay Association of Realtors; and past president of the North Bay Association of Realtors.

Up until last week, real estate agents were not allowed to show occupied properties in Sonoma County, said Carol Sebastiani, of Carol Sebastiani Properties with Sotheby’s Homes. The new rules are pretty strict, but allow buyers to physically walk through a property.

“You have to fill out a special disclosure form, they want to know that the buyer and seller are aware of the pandemic,” Sebastiani said.

Three people – the agent and two clients – are allowed in a property at a time, and the showing is by-appointment only so that buyers do not overlap, said Beth Reilly at Terra Firma.

“You must wear booties or fresh socks so you don’t track anything in,” Reilly said. “You have to provide gloves and masks (if a buyer doesn’t have their) own.”

Sebastiani said she has seen a change in demand for what shoppers are looking.

“What a lot of people are looking for is very high-end homes to rent,” she said.

Of the current inventory of 119 listings on the MLS (Multiple Listing Service) in Sonoma Valley, roughly two-thirds are priced at “over $1 million,” Kerr said.

Kerr said in the active inventory as of May 8, the average price is $649,000 and the median is $669,000, and in the under $1 million category the most expensive listing is $975,000 for a four-bedroom, three-bath single family home; the least expensive is a 646-square-foot studio for $169,000.

Sebastiani said it is “too early to know” how the coronavirus will affect Sonoma Valley real estate long-term, but she and other real estate professionals are not too concerned about the future.

Reilly said the market weathered the last five recessions, and in three out of the five real estate increased value.

Kerr said the industry is learning to “normalize” in the “new normal.”

“I don’t think people should panic,” he said. Housing is “a basic need, and people need a place to live” in good times and in bad times.

“The thing that has always pulled the U.S. out of our recessions and depression, and put it back on its feet is real estate,” Kerr said. “I hate to sound sappy, but people still believe in the American dream.”

Contact Anne at anne.ernst@sonomanews.com.