Leaves are falling, as are interest rates!

The Federal Reserve lowered interest rates yesterday for the first time since March 2020, allowing homebuyers to secure loans at lower rates. Many families are looking to buy their first home or upsize to a larger property.

In Sonoma County, the market is already shifting as buyers and sellers have anticipated this drop in interest rates. This week, there are more active listings than in any other week over the past 12 months, and buyers are actively exploring their options and making offers.

Interestingly, I’ve noticed that some houses can sit on the market for three or four weeks, attracting numerous potential buyers who do not make an offer. However, once an offer is finally submitted (much to the seller’s relief), two or three other offers often come in simultaneously.

This trend shows that while buyers have options, competition remains. Fortunately for buyers, the market is not as frantic as it was in 2020 and 2021, when offers were often made sight-unseen, waiving all inspections and contingencies, resulting in fierce bidding wars. Nonetheless, in Sonoma County, multiple offers and bidding wars are still happening. With falling interest rates and more buyers entering the market, we can expect an increase in multiple offers, which typically leads to price spikes.

If you’ve been considering upsizing or becoming a homeowner for the first time, now is the time to act. While you can always refinance if the Fed lowers rates again in 2025, the inventory of houses in Sonoma County is limited. Families continue to move here to enjoy the natural beauty and healthy lifestyle our county offers. Unfortunately, there isn’t enough housing to meet demand, which means more buyers will lead to multiple offers.

I love helping first-time homebuyers purchase their homes and fostering the pride of ownership and financial security that comes with it. I don’t want to see a nation of renters. If you have questions about the market, whether this is a good time to sell or buy, or if you qualify to purchase your first home, please reach out. I look forward to assisting you!