The beautiful countryside township of Glen Ellen gives a quaintness in the heart of wine country that isn’t found elsewhere. The nearly 1,000 residents who make Glen Ellen their home have gravitated there for its charm and peacefulness, but also for the luxurious amenities the homes offer there. Glen Ellen offers a wide swath of architectural styles, each home uniquely designed with the owner’s wants and tastes taken to create dream homes that you’ll not soon forget.
The housing market in Glen Ellen has undergone much of the same frenzy the rest of the nation bore witness to following the boom in median home prices in 2021. But Glen Ellen has had other factors impact its real estate market that have been isolated to the region. If you are considering buying or selling Glen Ellen property, the following analysis will help get you started on your journey.
The national housing market faces interest rate uncertainty
The shortage of building material due to supply chain interruptions created a higher demand for available homes in early 2020. This further compacted a new construction market that was still reeling from the Great Recession of 2008. Since the early months of the COVID-19 pandemic, a low supply of homes and an extremely high demand made median home prices soar to record levels.
In a move to combat both increasing inflation rates and to lower median home prices, the Federal Reserve began to increase interest rates. Over a 16-month period, the rate increased more than 5%, a move that worked on inflation. However, the drop in demand for housing as a result of these rate increases was only temporary.
Forbes predicts that median home prices are rebounding from these rate adjustments and will soon break the record of $413,800 set in June 2022.
The national real estate market paints a broad picture, but not a comprehensive one for local markets. Using the data from national economists in combination with information gathered from experts in the Glen Ellen housing market will bring this local market into much sharper focus.
How the national market is impacting the market in Glen Ellen
Nationally, the market is still leaning toward sellers, though not nearly what it was 18 months ago. Still, the high demand for homes in Glen Ellen has created a market for sellers that far surpasses the national one. Median home prices in Glen Ellen have grown dramatically over the last three years and are not showing signs of decreasing. At best, experts believe that any future interest rate increases over the remainder of 2023 will only level the market off in this community.
There is a shortage of homes in Glen Ellen that any prospective buyer should be aware of. This picturesque wine country township has less than 1,000 residents. While new home builds are happening to increase the number of available homes, supply chain issues and other factors are keeping this moving at a pace that is slower than ideal.
Morningstar predicts that the Federal Reserve, satisfied with how inflation is continuing to decline, will make moves to lower the base interest rate beginning in February 2024. This will very likely cause a jump in demand for homes nationwide, an effect that Glen Ellen will certainly feel.
Though you’ll pay more in interest today than what the experts are predicting for 2024, the rates are still predicted to climb a bit more over the remainder of 2023. This means buying today will give you a better rate than it would before the rates are predicted to drop in February. Keep in mind that if the rate drops are accurately predicted, it won’t be until mid-2025 before they are at pre-pandemic levels. But buying a home today will also save you money in the long run for another reason.
Median home prices are continuing to rise, especially in Glen Ellen. With the median already at 1.5M, it’s far higher than the national average. Securing a home there now with today’s median home prices means paying less than you will next year and comes with the bonus of near-instant equity when prices rise.
As a bonus, you can always refinance when the interest rates drop.
How to navigate the Glen Ellen housing market as a seller
For those who want to sell their Glen Ellen home, the market there is greatly favorable. The demand remains high and looks to increase even more if the interest rate predictions for 2024 are proven to be true.
Selling in this market can be quite lucrative. But it will take great marketing skills to attract qualified buyers to your home. Luxury real estate is a niche market, and it will take just the right interested parties to result in a sale. To get the most from your property at closing, it’s highly recommended that you team with a real estate agent like Mark Stornetta who has experience in the luxury market. They will know how to properly advertise your home to the right segment of buyers. An expert who can navigate the entire process will also save an immeasurable amount of time and stress, further proving just how valuable a seller’s agent can be.
Ready to make a move?
The decision to buy or sell real estate in any market should be carefully considered. A strategy can be formulated with the assistance of a skilled agent who specializes in luxury properties. If you are looking at buying or selling property in Glen Ellen,
Mark Stornetta has the experience in this niche luxury market to make your acquisition or sale a seamless transaction. Consider a consultation with him today as your next move in this market.
*Header photo courtesy of Mark Stornetta
