Bodega Bay Market Summary - Jul/Aug 2009

Here's the latest data on the real estate market in BB. You'll see that we continue to feel the downward pressure from the relatively low number (but very influential) distressed properties. Those properties are certainly getting the majority of the action right now but the number of new listings is slowing significantly, at least for now. You've probably heard the reports that thousands of distressed properties will enter the market in the 4th quarter and while I don't know how many will be in our area, those reports alone are impacting the psychology of the market.

Showings have picked up again over the last couple of weeks. However, we've been experiencing a great deal of cyclical activity all year - up for a few weeks and quiet for a few weeks. Buyers are still leery of the near future but appear to be more relaxed than they were several months ago and that alone has made me less reluctant to take on listings. Six months ago I suggested holding off, today I'm much more open to putting a client's home on the market - at the right price, of course. The number of sales has remained slow but steady throughout 2009 and somewhat ahead of 2008 - I expect that to continue through the rest of the year with a leveling of prices.

Pricing the homes has been a difficult conversation for those looking to list. With the continued downward pressure, you can't list for the future as many did a few years ago. The numbers are more important than ever, even though buyers are frequently attempting to low-ball their offers. And some of them work. However, we're still retaining a list price/sale price ratio of 94.4% so sellers are holding firm once they find the proper price point. Currently, prices are about 16% below this time last year in Bodega Bay and 33% lower in Bodega Harbour. Much of the discrepancy is due to s short spike in Bodega Harbour prices last year.