May 2023 Newsletter

(Photo by James Garcia on Unsplash)

Mortgage demand is picking up this month as rates dropped in April — an indication that home buyers are highly tuned to the fluctuating market. Rates may be headed below 6% in the next few months as inflation eases, according to the National Association of Realtors®.

“Falling mortgage rates open new doors for many buyers, bringing down the monthly payment of a home loan,” says Timo.“Even at 6%, this makes the median home price far more affordable.”

The housing market should hit its peak mid-summer. Buyers who are on the fence are strategizing whether to jump into the market before it returns to its normal full buzz here in the Petaluma area or wait. In the bigger picture,waiting for the rate to drop to 6% or below may cost a buyer in the long run if prices go up. “There’s always the option to remortgage with an adjusted ratelater,” says Timo. “But the sale price is always the sales price and that may not stay where it’s at right now.”

Freddie Mac reported the following national averages with mortgage rates for the week ending April 13, 2023:

· 30-year fixed-rate mortgages: averaged 6.27%, dropping from last week’s6.28% average. Last year at this time, 30-year rates averaged 5%.

· 15-year fixed-rate mortgages: averaged 5.54%, falling from last week’s 5.64%average. A year ago, 15-year rates averaged 4.17%.

According to a recent article in the New York Times, U.S. Millennials have had a challenging time establishing themselves as homeowners. The April real estate news story reported on the Americans who were born between 1981 to 1996. and have been saddled with student debt and economic uncertainty.

The oldest of this cohort faced the housing crisis and the Great Recession of the late ’00s, whereas the youngest didn’t get a break having graduated from university directly into the throws of the pandemic. Consequently, the majority of Millennials have been renting, at least until recently.

The report states that, according to a nationwide study, in 2022, millennial homeowner households actually become a majority among the generation, at51.5 percent. While millennials still own fewer homes than older generations,about seven million have become homeowners over the past five years.

"That’s more than triple the gains of Gen X (born 1965 to 1980), which added two million new homeowner households, for a total of about 24 million,”states the NYT. “Baby boomers (born 1946 to 1964), still own the most homes, about 32 million, but lost around 350,000 homeowners during the same time period."

The average Millennial bought their first home at age 34 years old, later than their parents or grandparents as the idea of the American Dream becomes more and more expensive.

“Still, Millennials are figuring out how to make it happen,” says Timo. “Many young people moved back to family shared housing during the pandemic and saved money. With savings and/or downpayment help from family members, we’re seeing Millennials in the market looking for homes that have reached a more stable price range.”

“Though home prices in the Petaluma area remain out of reach for many young perspective buyers, I advise my home hunting clients not to lose heart.I’ll find them something in Sonoma County that will work. Thinking out of the box is my strategy,” says Timo.

A Federal Housing Administration loan is insured by the government. A buyer can get an FHA loan if they plan to live in the home they are buying as primary residence for at least a year. Requirements for credit scores are lower as well as the down payment amount. If you, or someone you know would like to buy a home in Sonoma County or surrounding area, call Timo for mortgage broker recommendations and to strategize today.

Following the most sluggish start for a new year

in a decade, the typically competitive Petaluma

area housing market is gradually picking back

up. The North Bay in general remains amongst

the most positive in home value growth out of

the Bay Area’s nine counties.

After dropping in January from a November high, interest rates climbed again in February. “Buyer demand has rebounded slightly, despite the fluctuation of interest rates,” says Timo.“Open house traffic is a good indicator that there are buyers circling the wagon. The number

of offers and time it takes to sell a home show that buyers are still cautious as we move into Spring.”

This February, home prices in Petaluma were up 2.6% in comparison to the same month last year and although the number of homes sold locally in February was down from 31 to 26, the most desirable properties have been selling slightly above list price. “March through May is generally a busy time in Sonoma County real estate,” says Timo. “So, this next couple of months will be revealing as to where the market really is.”

Since 2008, various markets have ebbed and flowed with the number of new listings in the area coming onto the market. The pandemic brought a huge surge and the migration of remote and hybrid workers continues to strain the housing stock. “Records show that the last year represents the lowest number of new homes coming onto the market in Sonoma County in 18 years,” says Timo. “I’d say that with such a low inventory of competition, this Spring is the time to sell.”

The weather hasn’t helped boost the market, either. “It’s not been very conducive for getting homes ready for market. When the sun returns, we’ll hopefully see a wave of house painting and landscaping.” According to real

estate records, 75% of Petaluma homebuyers this year are from within the area. Those that did move from Petaluma, mostly relocated to the Sacramento area, followed by Los Angeles and Seattle.

The average Petaluma home value is around $878,952 currently. For those in the 94952 zip code, including Valley Ford, Two Rock and West Petaluma, the median price is $1.1 million, up 0.4% from last February. Bodega Bay remains the most expensive real estate in neighboring communities, with a median house sales price of around $1,570,000. Average price for homes in Sonoma, Penngrove, Sebastopol, Healdsburg, Glen Ellen and Sea Ranch are all well over a million dollars. “If you’re looking for a deal that beats East Petaluma prices, the Russian river, Santa Rosa, Windsor, Rohnert Park and Cloverdale are your best bets,” says Timo.

“All this means that it’s a buyer’s market. Homeowners are far more likely to negotiate. And if a house is located in a good spot, doesn’t need too much work and is priced correctly, it’s still going to sell relatively fast in this area.” The availability of single family homes is extremely tight in the Petaluma area and supply does not seem likely to improve given the urban growth boundary in place. Stubborn, high inflation is keeping the average 30-year, fixed mortgage interest rates elevated, but are expected to remain relatively low by historical standards. “Prices will find a level as interest rates stabilize,” says Timo. “But if you’re looking to move in the next year, don’t put off what you can do today.”

(image by FotoInToscana by Moira e Raffaella) 

• Baking spray
• 1 1/2 cups granulated sugar
• 6 ounces soft unsalted butter
• 3 large eggs at room temp.
• 1 1/2 cups all-purpose flour
• 3/4 teaspoon kosher salt
• 1/2 teaspoon baking powder
• 1/4 cup whole milk
• 2 tablespoons grated Meyer lemon
• zest & 8 tablespoons of fresh juice,
• divided (from 3 medium lemons)
• 2 cups powdered sugar

1.Preheat oven to 325°F. Line loaf pan w/

parchment paper; coat with baking spray.

2.Beat granulated sugar and butter until

fluffy, 5 to 6 min. Add eggs, one at a time,

on medium speed after each addition.

3.Stir together sifted flour, salt and

baking powder. Gradually add flour

mixture to butter mixture on low speed,

alternately with milk and 1/4 cup of the

lemon juice, beginning and ending with

flour mixture, beating just until combined

after each addition. Stir in 1 tablespoon

lemon zest. Beat on high speed until

fluffy, about one minute. Spoon batter

into prepared loaf pan.

4.Bake in preheated oven about an hour.

Remove from oven and let stand for 10

minutes. Remove cake from loaf pan and

allow to cool completely on a wire rack,

about 2 hours.

5.Place powdered sugar and

remaining 1 tablespoon of lemon zest

in a medium bowl. Whisk in remaining

4 to 5 tablespoons of lemon juice as

needed to reach smooth consistency.

Drizzle over cooled cake.

Encouraging signs of activity abound, here

in the Sonoma County real estate market.

It was a slow winter across the board

throughout the county’s housing market,

but buyers are back circling the wagons of

whatever new listings pop up.

Open houses are happening again after a

long hiatus. Buyers are showing up!

“Spring may well bring a bounty of repressed buyers back to the negotiating table,” says Timo. “If what we’re seeing now in terms of the number of showings and listing disclosure packages going out, Petaluma’s housing market is about to heat up.”

A drop in mortgage rates and a positive boost in the stock markets has buyers feeling far more confident in putting offers on homes with more realistic sticker prices than we’ve seen for a while.

“Supply and demand have led to bidding wars in these scenarios in the recent past,” says Timo. “But with economic conditions remaining some what volatile,

it’s hard to say whether the rebound in the local market will be anything other than a healthy level for both buyers and sellers.”

“Spring is usually the busiest season in the real estate business,” says Timo. “I’m geared up and ready to go to work for you, your friends and family, whether it’s a move in or out of the area, an upsize or downsize or rental property you have in mind"

Current recorded median home price for a two-bedroom house in Petaluma is $770,000; three bedrooms will set you back an average of $833,500 and four bedrooms around $910,000. A five- bedroom family house in Petaluma averages around $1,100,000. Let’s see how those figures fluctuate throughout the coming Spring and Summer sales seasons.

“If you’re on the fence, you may wish to jump into a market search now,” says Timo. “It’s doubtful we’ll see prices drop given the lack of inventory.” 

Neighboring coastal Sonoma prices are high. A two-bedroom house along the coast will cost you an average of $1,367,500 currently, with prices soaring up to an average of $1,825,000 for a coastal four-bedroom home. Cotati/Rohnert Park offer some of the best deals in the immediate area. The average price of a two-bedroom house in the Cotati/Rohnert Park area is presently selling for around $607,000 with five-bedroom homes available in the median range of $810,000.

“You’re going to pay more in Sebastopol than Petaluma,” says Timo. “The city of Sonoma varies when compared with Petaluma, but the bigger the house and property the more expensive the comparison.” “Petaluma and Sonoma County as a whole, except for the coastal region, represents good value for money in real estate when compared to most all Bay Area counties. It’s challenging for a lot of people to get into the market, regardless,” says Timo. “That’s where a seasoned real estate professional comes in. Don’t hesitate to call me with any questions, whatever your situation or budget.”

If you’ve been itching to spruce up your home décor during the past few cold, rainy months, increased

daylight hours are about to shine a spotlight on the rooms that need the most work!

We took a look at the latest design trends out there for this year, so that even the smallest design upgrades may boost the spirits and the property value of your home. It’s the season to get a move on with making the most of your living spaces.

1.Sustainable Design Choices — find out where and how items are made before shelling out the big bucks.

2.Durable Fabrics — natural linen, velvet and textural fabrics are beautiful, but look for stain-resistant, high performance, sustainable and/or repurposed materials that mimic the look you’re after and are more functional.

3.Saturated Paint Colors — Color is king, or queen this year and designers are calling for enveloping walls, ceilings and vanities in the same monochromatic shades. Think pale blue!

4.Listening Rooms – music, or audio rooms, whatever you’d like to call them, they’re in vogue. A small room transformed into a space to listen to music, audio books, take a Zoom meeting.

5.Natural Stone Slabs — they’re dominating backsplashes, cascading in waterfall edges and wrapping around kitchen islands. The age of the subway tile is waning.

6.Muted Colors — plums and mustards, calm, deep tones found in nature. 

7.Granny Chic — nostalgia is back. Do not ditch Auntie Elsie’s plates and cushion collection at the thrift store, it’s all back in style.

8.Outdoors Indoors — the positive effects of being in nature boost interiors too. Natural materials such as bamboo, cork, sisal and wood add character and texture along with lots of lovely house plants.

The era of substantial growth for the population of California is seemingly over as pandemic era exodus and weaker levels of in-migration due to reduced hiring, plus

rampant tech lay-offs make it unlikely that the one percent annual rate growth of the last century will be seen again any time soon.

While Sonoma County, according to a new report on Bay Area counties released by the California Department of Finance, underwent the second smallest population drop of .06 %, in contrast, neighboring Marin County saw the largest percentage basis of 1.5%. Neighboring Napa County was up there in the top two counties with shrinking populations after Marin, with a 1.3% drop.

“This data shows us that Sonoma County continues to attract newcomers, but on a steadier basis,” says Timo. “There’s somewhat of a balance in place that we did not experience during the earlier period of the pandemic rush for housing.”

Because the population is holding up in Petaluma and Sonoma County as a whole, housing remains a hot commodity. Census figures show the county population recorded at 485,887 in July 2021, down an estimated 48,863 from the previous year. People 65 and over represent 21.1% of the Sonoma County population. Housing is still very tight,” says Timo. “And we can’t blame the Baby Boomers who are healthier than ever these days and don’t want to necessarily downsize or move in with their kids. We need more choices to accommodate our population, affordability-wise, size-wise and location-wise.”

Stand-alone, single family home builds are not the answer given the urban growth boundary that Petaluma has to protect from sprawl. “Getting it right with regards to infill, parking and traffic is the modern challenge of our city and

county development going forward,” says Timo. “It’s going to take a few more years to get it right and have enough housing for everyone who needs a home here in Petaluma and neighboring cities.”

The California Department of Finance Report placed San Francisco last, after Sonoma County, with a recorded 0.5% population decrease. Though Federal census data shows a different story. For the City of San Francisco, recording

that its population fell by 6.3% between July 2020 and July 2021, the most of any U.S. city. California’s total population is reported to have declined by approximately 210,000 people leading to the first state-wide population drop in a century.

A decade ago, California registered more than half a million births each year. Due in part to the cost of housing, education and childcare in the Bay Area, young people are choosing to delay marriage and childbirth. The number of

new babies in the State dropped to 423,768 in the year between July 2021 and July 2022. In addition to COVID deaths during the last three years, California’s population of Baby Boomers is also aging, leading to a higher mortality rate.

Yolo County saw the biggest population increase in the Bay Area and statewide at around 6,900 people, attributed in the finance report due to UC Davis students returning to campus — Santa Barbara, Santa Cruz and San Luis Obispo recording similar data elsewhere in the state. “The puzzle of how to piece together housing solutions is challenging but vital,” says Timo. “I’m interested to see how our community adapts with new zoning laws for tiny

homes and second units, duplex and apartments.” We all have our own specific housing needs at different stages of our lives. 

Timo is more than happy to take your call to discuss your current or future moving strategy. Give him a call today at 707 .477.8396.

Prince Harry was pipped off his post as best-selling expat author in Petaluma’s Copperfield’s Books this February. We’re delighted to announce that Frances’ new novel, released in December is flying off the shelves in our local bookstore. An audio book is to follow, this fall. Signed books are also available online and in

Timo’s office in Theatre Square during business hours.

https://bookshop.org/lists/the-house-on-liberty-street-home-of-second-chances

https://www.barnesandnoble.com/w/the-house-on-liberty-street-frances-lrivetti/

1142812459

If you’ve read and enjoyed The House on Liberty Street, please post a review on Amazon and/or wherever you purchased it. You don’t have to purchase on Amazon to leave a review, but these reviews make a huge difference in the promotion of a book. So, thank you in advance if you take the time to do so!

• 1 lb fresh Dungeness crabmeat
• ½ cup of mayonnaise
• 1 egg, beaten
• 2 cups Panko breadcrumbs
• 3 Tbsp fresh chives, chopped
• 1 ½ Tbsp fresh parsley,
• chopped
• 2 ½ tsp lemon juice
• ½ tsp cayenne pepper
• 1 tsp Lemon Zest

Mix together mayonnaise, egg, and

lemon juice in a small bowl. Lightly

toss Dungeness Crabmeat, chives,

parsley, cayenne pepper, lemon

zest and panko breadcrumbs in a

slightly bigger bowl. Gently fold in

mayonnaise mixture. Cover and

refrigerate for an hour. Shape

mixture into 8 crab cakes, around

a half cup each.

Preheat a large nonstick pan to

medium heat and coat with canola

oil. When the oil is hot, place crab

cakes in the pan and cook until

golden brown, around 3-5 minutes

on each side.

Serve hot with tartar sauce and

lemon wedges.

The housing market has been in hibernation these past few months and yet there are signs of a steady return to a more stable market this New Year. “Industry experts liken the national real estate market to a hangover,” says Timo, “slow to get moving the morning after the party. Yet here in the Petaluma area, homes that are priced right are holding their value and still in demand given low inventory in our desirable communities.” As reported in the New York Times early in the New Year, the pandemic created the perfect storm for driving up housing prices. When mortgage rates doubled in a matter of months, buyers elsewhere across the country froze. 

Lingering economic uncertainty will most likely prevent the housing market from getting out of control again any time soon,” says Timo. “While national sales fell in the last six months, prices locally have largely held.” In fact, the West Petaluma median home listing price in November was $1.2 million. And according to Realtor.com, most homes sold close to asking price if not more. While it is tough for first time buyers to get into the market without family support while interest rates are as high as they are, there is certainly less competition from other buyers. “I’ve been able to help buyers secure fixers and other starter homes in this less frantic market,” says Timo. “They have an opportunity to negotiate for repairs and reductions.” 

“Many of my clients have accrued substantial home equity simply by living in the Petaluma area for a period of time. It’s a seller’s market in that there are more people looking for homes than there are listings. Those who have a desire or need to move may do so without having to overbid on their replacement property, making moving a far less stressful concept.” The National Association of Realtors expects home prices to remain stable overall this year but a lot of that depends on address. San Francisco may see a more noticeable price drop, whereas the Petaluma area and Sonoma County as a whole represents the second-best house pricing deals in all Bay Area counties. And there’s no dispute that it’s a great place to live. “This really is more of a normal market,” says Timo. “Sellers who price their home conservatively should still expect to see a couple of good offers.” 

Some real estate economists project mortgage rates beginning to fall maybe by the second half of this year. “This could make it more feasible for buyers to enter the market,” says Timo. “But finding the right home at the right time and price is always the most important aspect of a move. A buyer now may remortgage at a later date if all the other factors work well.” 

Timo is ready to go to work for you, your family, coworkers and friends as a buyer or selling agent. Call 707. 477.8396 to discuss your housing needs today 

 Thinking of a renovation or a spruce up at home this year? After the holiday clean-up is a great time to reflect on what improvements and updates you may want to tackle in the new year. Here are the top trends we’ve tracked down for home updates for 2023:

1.Open plan floorplans are being thoughtfully reconsidered. After the long stay-at-home and work-from-home era, we’re not so sure that open plan works with our modern lives. While flow and space are important, so are defined, designated areas. Homeowners and designers  are working together to create rooms that provide multi-purpose privacy.

2.Subway kitchen tiles have had their day. In mode are slabs of quart or marble as seamless backsplashes. The lack of grout lines makes it easier to keep clean.

3.Kitchen islands become multi-work areas with technology chargers, extra storage and seating. The modern kitchen island increasingly becomes the space for work, entertainment, family gathering and cooking. 

4.Art Deco is taking over from mid-Century Modern in furniture, lamps and accents. Expect more vibrant colors, geometric shapes in wallpaper, furniture and lighting in 2023. 

5.Pantone’s new color of the year, Viva Magenta, is a not-so-subtle hint at how boldly colorful interiors will be in 2023 and beyond.

6.Mellow yellow – a warmer, muted tone of yellow replaces the greys and beiges of the past few years. 

7.Recognize the ceiling as a fifth wall. Designers are calling for color up above. 

8.Updates that improve a home’s energy efficiency are primed to surge in 2023. These home improvements reduce energy and utility bills – offering a much-needed reprieve during times of high inflation. 

9.Outdoor living spaces are becoming more prolific as we’ve adapted to al fresco gatherings and shared living. 

10. Accessory units continue to be the number one sought-after solution in the housing market. 

•  2 quarts water
• 2 C. fresh mung bean sprouts or soybean sprouts (about 5 oz.)
• 1 1/2 teaspoons kosher salt
• 8 ounces fresh Chinese egg noodles 
• 1/4 C. chicken stock / vegetable stock
• 1 tablespoon plus 1/2 teaspoon light soy sauce, plus more to taste
• 1/2 teaspoon toasted sesame oil
• 1 tablespoon peanut oil
• 1 (1/4-inch-thick) slice unpeeled fresh ginger, lightly smashed
• 4 ounces fresh snow peas (about 1 cup), strings removed
• 3 large (1 oz.) fresh water chestnuts, peeled & sliced 1/8-inch thick or 1/3 cup drained canned sliced water chestnut

Bring 2 quarts water to a boil in a large saucepan. Place bean sprouts in a metal strainer; lower into boiling water, & blanch bean sprouts until crisp-tender, about 10 seconds. Remove strainer from water (do not remove water from heat), & rinse bean sprouts under cold water about 30 seconds to stop the cooking process. Drain well, & set aside. Add salt to water in saucepan, & return to a boil over high. Add noodles, & return to a boil over high. Boil, stirring often, until just under al dente, about 1 minute. Drain noodles well in a colander, & rinse under cold water about 1 minute to stop the cooking process. Drain. Briefly rinse again, & drain, lifting noodles to separate & dry the strands. Set aside. Stir together stock, soy sauce, & sesame oil in a small bowl. Set aside. Heat peanut oil in a wok over high until shimmering & fragrant; swirl to coat wok. Add ginger; stirring constantly, until sizzling & starting to brown around edges, about 10 seconds. Add snow peas; stirring constantly, until bright green, about 1 minute. Add water chestnuts; stirring constantly, 30 seconds. Add bean sprouts; stirring constantly, until wilted, about 1 minute. Stir sauce, & add to mixture in wok; bring to a boil over high. Add noodles to wok; stirring constantly, until noodles absorb sauce, about 2 minutes. Remove & discard ginger. Season with more soy sauce to taste. Serve immediately.