Sonoma County fountaingrove purchase

[Ryan Henriksen]

Hi All! I’ve been searching for a new high end home (new build) up in fountaingrove in Santa Rosa, CA, and have noticed all the homes beginning to sit on the market with several price reductions. Anyways, is now a good time to buy (since homes are reducing in price and owners are taking “less than” offers) or is the market still shifting and will these high end homes continue to decline in value for quite sometime. We don’t need to buy, as this will just be a second home. All advice appreciated. Thanks! 

[Brian Burke]

The market is still shifting but still might be a good time to buy.

Increasing interest rates and increasing prices (for the last several years) are putting a dent in demand. A year ago these houses were getting multiple offers, over asking.  Sellers got bold and priced every new listing higher than the most recent comps.  But now that’s not happening, which opens a door for you.

You are seeing price reductions but a lot of that might be sellers who were shooting too high to begin with and are now getting realistic.  A lot of Fountaingrove buyers are paying cash so increasing interest rates play a lesser role, at least in the higher end ($2M+).

The reason I think this might be a good time is that Fountaingrove is about 75% built out since the Tubbs fire, and if you are looking for new construction you’ll have fewer and fewer options as time passes. There’s no rush, though—the best move is to seriously watch the market and strike when you see the right house.