The Year Past - 2007

Posted at 3:50 PM, Jan. 18, 2008

In many senses 2007 was a "normal" year for the Sonoita market. In many ways it was abnormal. It was normal from the standpoint that about $33,000,000 in sales closed throughout the year. It was abnormal form the standpoint that 45 homes closed (normal is about 25 to 30) and 67 land parcels closed (normal is about 75 to 85). We also had one large commercial transaction valued at $1.35 million. More numbers: The median price for land was $19,000 and the median price for homes was $192 per square foot and $379,000. The largest land transaction was an 80 acre parcel on the Elgin Road which sold for $1,100,000 or $13,750 per acre. We had 7 homes sell for $750,000 or more with the highest price being $1,670,000 for a 3,800 sf house in the Crown C. Has there been any softness in our market? Not really. Most properties are selling within about 8% of asking price, but land prices have had more "negotiation". Not much, though. Our buyers have shifted from buying land and building a house to buying an existing home due to the higher costs of construction at this time. This will change, probably this year, as the housing market firms and prices move up. Given the above, is this the time to buy? Everything I read and my own personal opinion is that there is no time like the present. Prices are good. Mortgage rates are low and money is available.