MARKET UPDATE | Q4 2013 SONOMA | NAPA | WINE COUNTRY SONOMA VALLEY MARKET SUMMARY (SFH) Q4-2013 - SONOMA VALLEY VOLUME 22% < $500k 44% $500k - $1.0M $1.0M and up 34% A MESSAGE FROM OUR MANAGER: JEFFREY GIBSON The fourth quarter of 2013 demonstrated a leveling of the robust Wine Country real estate market as compared to the fourth quarter of 2012, according to the Bay Area Real Estate Information Services (BAREIS), and as demonstrated in the corresponding charts. The inventory shortage in Sonoma Valley and Healdsburg continues to propel prices upwards while sales volume declined compared to 2012. Despite the overall decline in sales volume, single-family homes (SFHs) in Sonoma Valley in the $500,000 to $1,000,000 range increased six percent. The average sales price for SFHs in Sonoma Valley increased from $732,767 in 2012 to $751,813 in 2013 - a three percent change.The average sales price in Healdsburg increased by 11 percent, from $781,100 in 2012 to $866,676 in 2013. WINE COUNTRY Brokerages 25 East Napa Street | 707.935.2288 722 Broadway Street | 707.939.2230 428 First Street East | 707.939.4460 369 West Napa Street | 707.935.3450 Source: BAREIS Average sales prices of single-family homes in Sonoma Valley increased from $732,767 in the fourth quarter of 2012 to $751,813 in the fourth quarter of 2013. Average sales prices of homes less than $500,000 jumped up 16 percent, while prices of homes in the $1,000,000+ range decreased by 14 percent. The shortage of inventory throughout Sonoma Valley has resulted in a three percent decline in the number of units sold and a one percent decrease in overall sales volume. The total sales volume in the fourth quarter of 2013 was $83,451,275. healdsburg MARKET SUMMARY (SFH) Q4-2013 - HEALDSBURG VOLUME 16% < $500k $500k - $1.0M 52% 32% $1.0M and up Source: BAREIS In Healdsburg, the average sales price for single-family homes rose 11 percent in comparison to 2012, with the average home selling for $866,676 in the fourth quarter of 2013. The average price of homes selling for more than $1,000,000 decreased by 24 percent, while the total number of units sold in that price range remained consistent with the previous year. The shortage of inventory resulted in a 26 percent overall drop in sales volume, and homes in the $500,000-$1,000,000 range saw a 7 percent decrease. The total sales volume in the fourth quarter of 2013 was $34,667,056.