The California housing market has shown its resilience this year, rebounding in January after a six month slump in the second half of 2023 when mortgage rates were at a high. According to real estate watch dogs, interest rates are expected to decline later this year, improving inventory throughout 2024.

California Association of Realtors has expressed optimism that the overall outlook for the housing market appears positive as pent-up demand translates into sales. There is an increase in active new listings in the Petaluma area. “While mortgage rate fluctuations may influence potential new buyers and sellers,” says Timo “the prospect of a softening in the economy and a downward trend in interest rates in the coming months is helping with increased inventory locally.” This should provide buyers with more financial flexibility. However, there is still likely to be a tight inventory in the Petaluma area as housing demand continues to exceed supply availability.

Forecasts predict a substantial 22.9 percent increase in existing, single-family home sales this year, compared to last year. “Homes are moving swiftly,” says Timo. “The current average home value in Petaluma is around $900,000 with homes on the West Side averaging around $1.1m.” Real estate remains more expensive in Bodega Bay, Healdsburg, Penngrove, Sebastopol and Sonoma, which makes Petaluma all the more appealing, price wise, for a desirable Sonoma County address.

“There’s been a downward trend in many Bay Area cities and counties,” says Timo, “Sonoma County on the other hand, retains its value for the money in real estate investments whether you are looking to buy a home for yourself or to rent out.”

Planning helps everyone be a step ahead in addition to having an agent that is highly aware of the local market. Timo is always available to discuss your goals, talk strategy, pivot as needed and work for you in this fast-changing market. Call him today at 707. 477. 8396