Every time we see a market like this, we also see outlier markets pop up, or markets that aren’t primary to Sonoma County. They could be outside of Guerneville, north of Cloverdale, way out in Mendocino County, etc. When buyers aren’t able to purchase the lifestyles they want in Sonoma County, they start looking in these outlier areas because they think they’ll be able to afford what they want and things will stay static.
After watching this happen over and over again, I can tell you that these outside markets are largely on the outskirts. When there’s a fluctuation or contraction in the marketplace, it’s like someone pulling a rug out from everyone’s feet, and these secondary markets are the first ones to feel it. This doesn’t make them bad investments; you just have to understand that you’re doing marathon investing—not sprinting. If you want to sprint, you’ll have to do so closer to the market epicenter, meaning closer to the downtown areas here in Sonoma County. They’re much more secure if you want to enter and exit the market in a certain time frame.
If you have questions about outlier markets or how to make them work for you, don’t hesitate to reach out to me. My team and I are here to help.