People exploded onto the Mendocino Coast in 2021, discovering its laid-back vibe, good food, and incredibly rugged Mendocino coastline. What had been a sleepy town soon became a tourist destination for weekend warriors from the San Francisco Bay Area, the Sacramento Valley, and beyond.
I’ve been here 25 years and I believe the Shelter in Place madness of Covid caused people to blast as far away as they could, desperate to escape the cities, congestion, their own homes. Marin and Sonoma beaches hadn’t opened yet, yet Mendocino’s had, and so folks leap-frogged to the North Coast, buying up Mendocino and Fort Bragg real estate, such that very few such North Coast properties remain.
Times are Changing in this small Coastal Community
These days, the Mendocino Coast has a steady inflow of visitors drawn to the unique charm of this coastal town, a step-back in time from the hustle of the city into what feels like a different culture, relaxed and quaint and just several hours drive.
The Mendocino real estate market has changed significantly. If you were lucky enough to have bought in 2020, people weren’t yet realizing the demand, and so you probably got a decent deal, no matter what you purchased. You wouldn’t need a realtor so much as a dart board to pick your place if you were making an investment. If you were hoping for a home, you could still look your realtor square in the eye and say, What else you got?
Not true in 2021. One needed to be a diligent Buyer and move quickly. It made me nervous, but I sometimes wrote offers on properties sight-unseen; every single one closed, so they were successful, but not my favorite approach. There was simply a lack of inventory.
Cost of Coastal Homes on the Rise
The face of the Mendocino coast began to change too. Prices were edging up. There was a water shortage. Parking was suddenly an issue. Nobody minded waiting in a line because there was always someone to catch up with – how’s the kids, the float, plans for the holidays? That down-home friendliness was subtly but noticeably changing. The great icons of the town were dying off, the elderly.
The Sellers who weren’t quite prepared to move earlier saw the prices going up and 2022 was suddenly a boom year for all – properties that hadn’t been on the market in years were changing hands. Folks who were seeking to leave anyway became compelled by the higher prices. Not only were these properties bought up, there was often a feeling of stiff competition.
For example, I was representing a strong, all-cash Buyer, who surprisingly found themselves outbid by $700,000. Can you imagine? That’s a whole other home!
Mendocino Coast more desirable.
The trend continued well into 2023, even pushing through the end of year holiday season which is typically a fallow time. Buyers were sitting on the sidelines with cash, waiting for the right properties to appear.
Then a shift became apparent – properties that were less than perfect, or overpriced, began to languish – they began to sit, price adjustments were being made. Now at the end of 2023 (I often ask other realtors), some homes aren’t even being shown.
In the same vein of softening the English language, some agents began calling price reductions “price improvements”. It’s funny how we keep moving further and further away from the meaning of words, and, in this case, it’s misleading. It’s an improvement only for one side of the transaction, the Buyer. Besides, improvement makes me think something was wrong before and now it’s fixed –
Interest Rates
Historical patterns have been for homeowners to seek a new home every seven years – we are somewhat predictable apparently. Yet what homeowner is going to shift from a 3% loan into an 8%? That became untenable for many, and with good reason. And so any homes that might have hit the market normally did not, and Sellers elected to stay put.
I am hopeful 2024 will bring a better market for homeowners, both Buyers and Sellers alike. With inland temperatures increasingly unpredictable, the Mendocino Coast is expected to be even more desirable and highly sought after – as a simple necessity of future living in a comfortable clime.
Armchair ramblings from one of the last independent realtors on the coast. Always here for any question you may have – none too small or too large. Give me a call – would love to help you. Call me today at (707) 331-4120 or contact me online.
Real Life, Real People, Real Estate.
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