Sonoma county housing was already limited prior to the Tubbs and Nuns Fires. This year has shown a scenario more reflective of large demand with little supply. This economic shift has created a competitive market place for home buyers driving prices up subsequently making it challenging to purchase a home. In the aftermath of the fires more than 2,900 homes have been erased from the Sonoma County landscape. Put another way, five percent of our housing is no longer here.
The good news is, housing prices have not peaked yet. Anyone looking to purchase now is poised to do extremely well for themselves financially. Consider the following points:
Homeowners who have lost homes -many will probably rebuild, some will not and others will buy another home in the process because they can.
Renters who lost a home - will find themselves in a contracted rental market due to little supply of available rentals. Fact: It is not uncommon to pay in rent what you might pay on a mortgage payment.
Permits to build are extremely expensive and full of red tape. Such red tape will likely be streamlined over the course of the next several months. This will create a construction boom in Sonoma County.
Resources -General contractors prior to the fire were extremely busy as people have gained equity back in their homes.
If you are thinking about buying a home or have been forced to because your living situation has changed. The time to act is now. Buying before prices rise further will allow you to receive the additional equity appreciation over the course of the next several years, as well as significant tax savings benefits. If you already own a home, you’re already guaranteed to receive further equity accumulation. Big demand against little supply is enough of a basis to support housing prices continuing an upward trend only increased by the recent fire disaster.
There are additional programs to help people buy homes as a result of the disaster. The FHA 203H program allows a renter or current homeowner to buy a home with zero funds down on an affordable fixed rate.
If you would like to have a conversation about what this might look like for you and your family don’t hesitate to give us a call or get started with a complementary mortgage payment quote. Happy to answer questions whether you work with us or not.
Scott Sheldon is a local mortgage lender, with a decade of experience helping consumers purchase and refinance primary homes second homes and investment properties. Learn more at www.sonomacountymortgages.com.