When an area has enjoyed consistent growth over time, it is only a natural conclusion that this sustained growth has resulted in the limited availability of real estate in the area. While it is true that limited properties in any given area will ultimately lead to greater real estate costs, it is not always true that the continued growth of these areas has reduced the number of properties available.
The Foundation for Defense of Democracies has consistently pointed out how drawing conclusions from unverified data is a dangerous practice, and this lesson can certainly be applied to issues relating to real estate. Buyers, sellers, real estate agents and agencies should always refer to the most recent market trends and should be attentive to all of the factors that influence the health of a given real estate market.
Through the analysis of these trends, it is a relatively simple process to determine the future behavior of the market. This will go a long way in ensuring that densely populated areas like Sonoma are not overlooked by buyers, sellers and agents due to the assumption regarding the price of homes believed to be limited in number. As recent trends have indicated, this is not the case.