Wine Country Market Update | Q4 2014

Glen Ellen, CA | web ID: 0243384

Wine Country Market Update Fourth Quarter 2014 SONOMA & NAPA - WINE COUNTRY BROKERAGES 25 East Napa Street, Sonoma | t: 707.935.2288 722 Broadway Street, Sonoma | t: 707.939.2230 428 First Street East, Sonoma | t: 707.939.4460

sothebyshomes.com

All data within this document is pulled from the Bay Area Real Estate Information Services (BAREIS)

A MESSAGE FROM OUR MANAGER: Jonathan Soh

A MESSAGE FROM OUR MANAGER: Jonathan Soh

In the Fourth Quarter of 2014, Wine Country real estate remained strong in all property categories. According to the Bay Area Real Estate Information Services (BAREIS), average sales price of single-family homes increased throughout the region in Q4 2014; the Napa County average sales price for single-family homes increased 23% in 2014 and the Sonoma County average sales price for single-family homes increased 14%. However, 2014’s severe Napa earthquake may have taken its toll as the number of single-family homes sold decreased 96% in the City of Napa in the Fourth Quarter 2014 vs. the Fourth Quarter 2013. Conversely, the number of single-family homes sold in the City of Sonoma increased by 17% and in the City of Petaluma, they increased 14% over the same periods. Most notable were the increases in the number of single-family homes sold in the $1.0M+ price category in the City of Sonoma and the City of Petaluma, which increased 50% and 300%, respectively, in the Fourth Quarter 2014 vs. the Fourth Quarter 2013.

SONOMA VALLEY MARKET SUMMARY (SFH) The Sonoma Valley market was very robust in the fourth quarter of 2014. Average sales price for single family homes was up $101,641, a 14% increase, from $752,012 in Q4 2013 to $853,651 in Q4 2014. Homes sold at 98% of asking price. The total number of homes sold in Sonoma Valley increased by 17% across all price ranges, from 110 units sold in Q4 2013 to 129 units sold in Q4 2014. Most notable is the $1.0M+ price range which experienced a 50% increase from Q4 2013 to Q4 2014. Total sales volume in Sonoma Valley increased 33% overall, from $82,721,275 in Q4 2013 to $110,120,995 in Q4 2014.

Q4-2014 - SONOMA VALLEY VOLUME

14%

< $500k $500k - $1.0M

51% 35%

$1.0M and up

PETALUMA/COTATI (SFH) The Petaluma/Cotati market experienced significant growth, particularly in the $1.0M+ price range. Average sales price for single family homes was up $156,759, a 29% increase, from $543,795 in Q4 2013 to $700,554 in Q4 2014. Homes sold at 97% of asking price. The total number of homes sold in Petaluma/Cotati increased by 14% across all price ranges from 162 units in Q4 2013 to 185 units in Q4 2014. Most notable is the $1.0M+ price range which experienced a 300% increase from Q4 2013 to Q4 2014. Total sales volume in Petaluma/Cotati increased 47% overall, from $88,094,734 to $129,602,484, reflecting a 450% increase in sales volume for the $1.0M+

Q4-2014 - PETALUMA & COTATI VOLUME 3% 42% 55%

< $500k $500k - $1.0M $1.0M and up

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SONOMA VALLEY

SINGLE FAMILY HOME SALES

Approximately 40 miles north of San Francisco, Sonoma real estate is perfectly situated to maximize residentsâ&#x20AC;&#x2122; quality of life. Although world-renowned as a wine mecca, Sonoma maintains the tight-knit feel of a small community, with a charming downtown. In 1846, the California Republic declared its independence from Mexico, with Sonoma named the capital of this shortlived sovereign state. Consequently, Sonoma is known as the birthplace of California, a town rich in history surrounded by breathtaking natural beauty.

Q4 AVERAGE SALES PRICE (SFH) PRICE RANGE

% CHANGE

2011

2012

2013

2014

UP TO $500,000

$319,993

$333,631

$386,717

$404,244

5%

$500K - $1M

$693,346

$688,919

$676,885

$677,571

0%

$1,000,000 AND UP

$1,651,909 $1,935,850

$1,672,423 $1,688,907

TOTALS

$529,978

$752,012

(2014 v 2013)

$1,000,000 $800,000 $600,000 $400,000 $200,000

1%

$2011

$732,767

$853,651

14%

2012

Average List Price

2013

2014

Average Sales Price

Q4 CLOSED UNITS: # OF SIDES (SFH) PRICE RANGE

% CHANGE

2011

2012

2013

2014

UP TO $500,000

79

56

47

39

-17%

$500K - $1M

26

39

41

57

39%

$1,000,000 AND UP

11

20

22

33

50%

116

115

110

129

17%

2011

2012

2013

2014

UP TO $500,000

$25,279,419

$18,683,349

$18,175,700

$15,765,520

$500K - $1M

$18,027,000

$26,867,850

$27,752,280

$38,621,530

39%

$1,000,000 AND UP

$18,171,000

$38,717,000

$36,793,295

$55,733,945

51%

TOTALS

$61,477,419

$84,268,199

$82,721,275

$110,120,995

33%

(2014 v 2013)

135 130

TOTALS

125 120 115 110 105 100 2011

2012

2013

2014

Q4 CLOSED VOLUME (SFH) PRICE RANGE

% CHANGE (2014 v 2013) -13%

$120,000,000 $100,000,000 $80,000,000 $60,000,000 $40,000,000

3

$20,000,000 $2011

2012

2013

2014

NAPA

SINGLE FAMILY HOME SALES The City of Napa, at the southern end of Napa Valley, was incorporated in 1872, and reincorporated again in 1874 as the City of Napa. Napa became the primary business and economic center for the Napa Valley by the early 20th century. Napa is a world-class destination for wine country excursions with tasting bars and large wineries, including the Michael Mondavi Family Estate and the Domaine Carneros winery.

Q4 AVERAGE SALES PRICE (SFH) PRICE RANGE

% CHANGE

2011

2012

2013

2014

UP TO $500,000

$298,560

$325,088

$380,195

$416,263

9%

$500K - $1M

$636,894

$632,963

$654,480

$658,939

1%

(2014 v 2013)

$800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000

$1,000,000 AND UP

$1,949,214

TOTALS

$469,014

$2,952,083 $619,448

$1,752,781

$1,697,792

-3%

$596,825

$694,938

16%

$100,000 $2011

2012

Average List Price

2013

2014

Average Sales Price

Q4 CLOSED UNITS: # OF SIDES (SFH) PRICE RANGE

% CHANGE

2011

2012

2013

2014

UP TO $500,000

159

177

108

75

-31%

$500K - $1M

38

58

85

88

4%

(2014 v 2013)

300 250 200 150 100

$1,000,000 AND UP

14

22

16

24

50%

TOTALS

211

257

209

187

-11%

2011

2012

2013

2014

UP TO $500,000

$47,471,061

$57,540,554

$41,061,100

$31,219,713

-24%

$500K - $1M

$24,201,979

$36,711,863

$55,630,832

$57,986,671

4%

$1,000,000 AND UP

$27,289,000

$64,945,836

$28,044,500

$40,747,000

45%

TOTALS

$98,962,040

50 2011

2012

2013

2014

Q4 CLOSED VOLUME (SFH) PRICE RANGE

% CHANGE (2014 v 2013)

$180,000,000 $160,000,000 $140,000,000 $120,000,000 $100,000,000 $80,000,000 $60,000,000 $40,000,000 $20,000,000

$159,198,253

$124,736,432 $129,953,384

4%

SERVING SONOMA AND NAPA | sothebyshomes.com/sonoma-real-estate

$2011

2012

2013

2014

4

ST. HELENA

SINGLE FAMILY HOME SALES

Located north of Napa, Yountville and Oakville, St. Helena is referred to as the heart of Napa Valley. St. Helena has a population of just 5,000 people, spans approximately four square miles and is home to some of the best wineries, restaurants and shopping in Wine Country as well as some of the most exquisite estate properties in Wine Country.

Q4 AVERAGE SALES PRICE (SFH) PRICE RANGE

% CHANGE

2011

2012

2013

2014

UP TO $500,000

$403,333

$420,000

$415,194

$443,333

7%

$500K - $1M

$600,000

$816,038

$714,000

$750,024

5%

$1,000,000 AND UP

$3,759,143

$2,111,643

$2,105,714

$1,874,000

-11%

(2014 v 2013)

$3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $2011

TOTALS

$2,137,429 $1,414,190

$1,457,503

$1,053,544

-28%

2012

Average List Price

2013

2014

Average Sales Price

Q4 CLOSED UNITS: # OF SIDES (SFH) PRICE RANGE

% CHANGE

40

2011

2012

2013

2014

UP TO $500,000

3

2

3

3

0%

30

$500K - $1M

4

13

8

21

163%

20

$1,000,000 AND UP

7

14

14

10

-29%

TOTALS

14

29

25

34

2011

2012

2013

2014

$1,210,000

$840,000

$1,245,582

$1,330,000

(2014 v 2013)

36%

35

25

15 10 5 2011

2012

2013

2014

Q4 CLOSED VOLUME (SFH) PRICE RANGE

% CHANGE (2014 v 2013)

$45,000,000 $40,000,000

UP TO $500,000

7%

$35,000,000 $30,000,000

$500K - $1M

$2,400,000

$10,608,500

$5,712,000

$15,750,500

176%

$1,000,000 AND UP

$26,314,000

$29,563,000

$29,480,000

$18,740,000

-36%

$25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000

TOTALS

5

$29,924,000

$41,011,500

$36,437,582

$35,820,500

-2%

$2011

2012

2013

2014

PETALUMA and COTATI

SINGLE FAMILY HOME SALES

The towns of Petaluma and Cotati offer a little slice of California history to all who come to sample their Victorian delights. Petaluma offers many colorful family events that provide opportunities to escape the everyday hustle and bustle of life. The Great Petaluma Mill, which stands guard over the west bank, is one of the oldest structures in town. Cotati provides an eclectic assortment of restaurants, shops and services, and has one of only two hexagonally designed town plazas in the United States.

Q4 AVERAGE SALES PRICE (SFH) PRICE RANGE

% CHANGE

2011

2012

2013

2014

UP TO $500,000

$337,451

$369,600

$406,503

$425,736

5%

$500K - $1M

$630,638

$633,484

$633,691

$642,104

1%

$1,000,000 AND UP

$1,165,367 $1,341,682 $1,235,667

TOTALS

$394,875

(2014 v 2013)

$600,000 $500,000

$485,928

$543,795

$1,253,333 $537,679

1%

$400,000 $300,000 $200,000 $100,000 $2011

-1%

2012

Average List Price

2013

2014

Average Sales Price

Q4 CLOSED UNITS: # OF SIDES (SFH) PRICE RANGE UP TO $500,000

2011

2012

2013

2014

147

138

80

105

% CHANGE

250

(2014 v 2013)

200

31%

150

$500K - $1M

26

45

76

92

21%

$1,000,000 AND UP

3

11

6

3

-50%

176

194

162

200

23%

2011

2012

2013

2014

UP TO $500,000

$49,605,329

$51,004,740

$32,520,250

$44,702,300

37%

$500K - $1M

$16,396,600

$28,506,801

$48,160,484

$59,073,523

23%

$3,496,100

$14,758,500

$7,414,000

$3,760,000

-49%

TOTALS

100 50 2011

2012

2013

2014

Q4 CLOSED VOLUME (SFH) PRICE RANGE

% CHANGE (2014 v 2013)

$120,000,000 $100,000,000 $80,000,000 $60,000,000 $40,000,000

$1,000,000 AND UP

$20,000,000 $-

TOTALS

$69,498,029

$94,270,041 $88,094,734 $107,535,823

22%

SERVING SONOMA AND NAPA | sothebyshomes.com/sonoma-real-estate

2011

2012

2013

2014

6

HEALDSBURG

SINGLE FAMILY HOME SALES

The quaint hamlet of Healdsburg, located at the gateway of Sonoma Countyâ&#x20AC;&#x2122;s diverse wine growing region, is just 75 miles north of San Francisco. Healdsburg is a vibrant community with world-wide recognition as a popular destination for visitors looking to experience the American Tuscany. It is a welcome retreat, catering to its visitors and residents with first class hotels, spas, restaurants and boutiques. Many Victorian and Craftsman style homes reflect the towns rich 150 year old heritage.

Q4 AVERAGE SALES PRICE (SFH) PRICE RANGE

% CHANGE

2011

2012

2013

2014

UP TO $500,000

$317,014

$356,161

$392,107

$389,985

-1%

$500K - $1M

$709,219

$668,889

$743,370

$674,975

-9%

$1,425,000

$2,162,273

$1,638,818

$1,854,786

13%

$1,000,000 AND UP

(2014 v 2013)

$1,000,000 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $2011

TOTALS

$591,786

$781,100

$866,676

$874,710

2012

Average List Price

1%

2013

2014

Average Sales Price

Q4 CLOSED UNITS: # OF SIDES (SFH) PRICE RANGE

% CHANGE

2011

2012

2013

2014

UP TO $500,000

22

31

14

14

0%

$500K - $1M

16

18

15

20

33%

$1,000,000 AND UP

5

11

11

11

0%

43

60

40

45

13%

2011

2012

2013

2014

UP TO $500,000

$6,974,300

$11,041,000

$5,489,500

$5,459,783

-1%

$500K - $1M

$11,347,500

$12,040,000

$11,150,556

$13,499,500

21%

$1,000,000 AND UP

$7,125,000

$23,785,000

$18,027,000

$20,402,645

13%

$25,446,800

$46,866,000

$34,667,056

$39,361,928

14%

TOTALS

(2014 v 2013)

70 60 50 40 30 20 10 2011

2012

2013

2014

Q4 CLOSED VOLUME (SFH) PRICE RANGE

% CHANGE (2014 v 2013)

$50,000,000 $45,000,000 $40,000,000 $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000

TOTALS

7

$10,000,000 $5,000,000 $2011

2012

2013

2014

FEATURED PROPERTIES

HEALDSBURG Web ID: 0086498 | Price Upon Request New 10 lot subdivision in Alexander Valley.

Each lot approximately 40 acres with views and vineyard. Gated entrance. Hall-Ranch.com Sheri Morgensen | 707.431.07777

NAPA Web ID: 0243744 | $9,500,000 Approx. 25 acre estate. Private golf course, approx. 7,500 sq.ft. main house, approx. 6,400 sq.ft. clubhouse.

Peggy Wilkinson | 707.590.3707

SONOMA Web ID: 0243552 | $2,995,000 Beautiful approx. 3,700 sq.ft. home with a pool, 5bd/3ba. On an approx. 0.5 acre lot.

EastsideSonomaHome.com Carol Sebastiani | 707.290.3123

ON THE MARKET

left to right from top to bottom:

METROPOLITAN MARKETS NEW YORK, NY | Web: 0137477 | $3,350,000 HOUSTON, TX | Web: 1231893 | $3,150,000 SAN FRANCISCO, CA | Web: 0086812 | $3,195,000 RESORT MARKETS MALIBU, CA | Web: 1290076 | $3,295,000 PALM BEACH, FL | Web: 0076514 | $3,400,000 SANTA BARBARA, CA | Web: 0632314 | $3,200,000 FOREIGN MARKETS ISRAEL | Web: FZMR3K | $3,838,575 ENGLAND | Web: MQYOM4 | $3,505,219 MEXICO | Web: ZPWPDR | $3,250,000 sothebysrealty.com