|Crazy appreciation in Cotati, RP
Did I say crazy? I meant insane! Did I say insane? I meant ludicrous! Did I say ludicrous? I meant crazy insanely ludicrous! Yeah, that’s better. That’s what I meant.
Doubt me? How about $100,000 in a year? According to the Trendgraphix, Inc. Report put out by our Multiple Listing Service (MLS), the average price of a home in Rohnert Park and Cotati in April of 2013 was $305,000. According to the same report, that price in April of 2014 was $405,000. Now keep in mind that this includes both single family homes as well as condos and townhomes. Overall, that is an increase in value of 32.8 percent. These numbers are based on closed sales reported to MLS and don’t represent any private sales or FSBOs (For Sale by Owners), which are only a small percentage of the sales in this area at best anyway.
How do we compare to the rest of the area? Well, Sonoma County went up an average of about 8.3 percent over the same months. Now keep in mind, we are taking into account all cities in the county. Overall, RP/Cotati outperformed all other cities in Sonoma by almost 20 percent during that period. Why? A lot has to do with the lack of properties in Petaluma and the fact that RP/Cotati homes are still very attractive for buyers that work in lower Marin or even San Francisco.
How does the summer look? We are riding an appreciation high that will continue through the summer if we are basing our next few months on our last few months. We have seen responsible listing values and consistent increases in home values now for 19 months with two slight dips in
‘Schrier,’ see page 11
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both April and December of 2013. These months are normal for a nominal decline for both the winter holidays and taxes being due.
For property values to remain on a healthy incline, we need to slow the pace down quite a bit though. Anywhere from 8-10 percent per year is an excellent rate of appreciation. We all want our values to be up and back to their highest point of 2007, but we need a gradual pace to avoid repeating the sins of our fathers all over again. We now have responsible lending practices in place, we just need a responsible appreciate pace to match.
Ken Schrier is a licensed Realtor working locally for RE/MAX PROs and works with Buyers and Sellers throughout Sonoma County but focuses primarily on Rohnert Park, Cotati, and Penngrove. He can be reached by email at email@example.com or by cell at (707) 529-4819.