Happy New Year! While most people were sleeping off champagne headaches, we've been working away to welcome in 2026 with the first newsletter of the year—making it exactly 12 months since we started this wild ride. 

Sonoma County just served up the kind of week that makes you wonder if we're living in a real estate thriller—homebuyers are ditching luxury fantasies for ADUs and income-generating spaces while simultaneously navigating a market where a $46 million Ponzi scheme is liquidating dozens of properties at fire-sale prices, climate whiplash is rewriting the rules with back-to-back atmospheric rivers that dumped 21 inches and knocked out power for thousands, and Soho House is planting a 350-acre members-only flag in tiny Kenwood like they're claiming territory for the global elite. 

Oh, and insurance companies are finally returning to the table with actual policies instead of rejection letters after years of mass non-renewals

• A massive fraud scheme that artificially inflated Sonoma property prices for nearly two decades is now liquidating dozens of vacation-rental-eligible homes at bankruptcy prices, creating once-in-a-generation opportunities for patient buyers willing to navigate the legal chaos.

• Wine Country homeowners are finally catching a break on insurance availability as State Farm agrees to stop dropping policyholders through 2025 and Farmers lifts all caps on new policies, though the affordability part still stings with rate increases and climate risk pricing baked into every quote.

• A national travel writer just named Healdsburg one of America's seven must-visit cozy winter cities alongside Boulder, Aspen, and Charleston—so we're asking you to vote on which of these destinations you'd pick as your second-choice hometown, because comparing wine country walkability against snow polo championships and Southern humidity is exactly the kind of Friday distraction you need.

Pour yourself something good and settle in—this week's intel is the kind you'll actually want to digest before the weekend hits.

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Real Estate News

What homebuyers wanted in 2025 (and why 2026 might look different)

New Year, new home search priorities? Maybe not. Zillow's 2025 year-end data shows Americans ditched the luxury mansion fantasy for something way more practical: ADUs, waterfront docks, and fenced backyards. The shift tells a bigger story about how buyers are thinking differently about real estate value.

Here's what dominated searches in 2025:

Flexible living spaces won big: ADUs, casitas, guest houses, and in-law suites surged as buyers prioritized multi-generational living and rental income potential over pure square footage

Waterfront everything: Searches for lake, dock, river, and beach properties climbed nationally—even landlocked states like Mississippi and Montana saw spikes

Comfort crushed luxury: Fireplaces, gardens, and fenced yards gained traction while mansion and luxury searches cooled from 2024 levels

Outdoor spaces matter more: Pools, patios, yards, and views took priority as buyers valued livable outdoor areas over interior size

The data reveals buyers want homes that work harder for their families—not just bigger homes. The Pacific Northwest leaned heavily into ADUs and modern designs, while the Midwest dominated affordability-driven searches with markets under $350,000.

But 2026 could shake things up. The National Association of REALTORS predicts a 14% jump in home sales volume as mortgage rates drop toward 6% and pent-up demand finally unlocks. With inventory growing modestly and affordability improving slightly, the question becomes: will buyers stick with practical features like ADUs and multi-gen layouts, or will new priorities emerge as more options hit the market?

For Sonoma County buyers and sellers, this matters. If national buyers keep prioritizing flexible spaces and outdoor living, properties with casitas, detached studios, or vineyard views could see sustained demand. But if affordability improvements bring first-time buyers back in volume, smaller starter homes might become the hot commodity. The trends suggest buyers are thinking like investors even when they're buying for lifestyle—they want properties that can adapt, generate income, or accommodate family without sacrificing their California dream

Local News

When Giants Fall: Sonoma County's Storm Season Signals Climate Shift

Two holiday storms just gave Sonoma County a preview of what's coming. Christmas week brought over 21 inches of rain to Guerneville and knocked out power for 12,000+ customers. New Year's week is delivering another punch. This wasn't random bad luck.

The Big Picture

Sonoma County is entering an era of weather whiplash, where rapid swings between drought and flooding become the norm. In general, climate models show atmospheric rivers will increase by 30% by century's end, with precipitation from these events boosting 11-15% already in Northern California. For Sonoma County specifically, extreme heat days will jump from 14 per year currently to 25 by 2050

What 2025-26 Looks Like

La Niña typically means drier conditions for California creating wildfire risk. But when storms do hit, they'll pack more punch. Climate projections show future atmospheric river events could dump 21-59% more rain by late century. Translation: longer dry spells interrupted by more intense deluges.

For property owners, this matters. The County's Climate Resiliency Plan (adopted September 2024) includes 22 near-term measures, from vegetation management to sea level rise planning, backed by a $10M Climate Resilience Fund. The 2025 water year showed solid rainfall and reservoir performance, but the trend is clear

What's Changing

Temperature: Warming atmosphere holds more moisture, intensifying storm events

Precipitation patterns: 50% of California's annual rainfall comes from atmospheric rivers, increasingly concentrated in fewer, bigger events

Flood season: Peak atmospheric river season extending longer each year

Infrastructure stress: Highway 12 and 121 flooded during Christmas storms, previewing future challenges

The county isn't waiting around. They're transitioning to 100% renewable electricity via Sonoma Clean Power, electrifying vehicle fleets, and completing wildfire vulnerability assessments. For wine country residents considering property investments, understanding these patterns isn't optional anymore. The storms that hit over the holidays weren't once-in-a-lifetime events. They're the opening act.

Real Estate News

Two Killer Deals Just Closed (Thanks to a $46M Fraud Scheme)

Last week we closed on two exceptional Sonoma properties—both vacation-rental eligible, both part of the Kenneth Mattson bankruptcy fire sale. Our clients waited months navigating the chaos, but patience paid off big time.

Here are two properties our clients recently purchased from the Mattson bankcupcy. They were complicated transactions but by being patient the buyers created instant value.

The Mattson Mess

Kenneth Mattson and former partner Tim LeFever allegedly ran a Ponzi scheme from 2007-2024, collecting $28-$46 million from roughly 200 investors—mostly elderly retirees recruited through church networks.

The playbook:

• Sold fake interests in real estate limited partnerships

• Never recorded investors as actual partners

• Paid early investors with new victim money (classic Ponzi)

• Bought Sonoma County properties above market value, left them vacant, artificially inflating local prices

• Commingled funds across personal and business accounts

The FBI arrested Mattson in May 2025 on nine federal counts including wire fraud and money laundering. He's out on $4M bail while victims fight over bankruptcy proceeds. The SEC wants $46M back. A class action lawsuit filed August 2024 represents hundreds of victims who received fraudulent statements masking the scheme.

Typical Ponzi recovery? 10-30 cents on the dollar if you're lucky.

The Opportunity

Dozens of properties remain unsold in the bankruptcy auction. We've compiled the complete list and mapped every property.

The lesson: exceptional deals exist in Sonoma County, but they require patience, expertise, and someone who understands the legal maze of bankruptcy sales.

Want the full list? Hit reply or reach out directly—we'll send you everything we've got.

Lifestyle News

Soho House's 350-Acre Wine Country Takeover

When a 350-acre members-only resort breaks ground in a town of fewer than 1,000 people, you know something's shifting. Soho House just made it official: they're bringing their first Ranch House concept to Kenwood, and it's not subtle.

The numbers tell the story:

• 50 cottages and villas opening in 2027

• 350 acres of vineyards with Hood Mountain views off Highway 12

Backed by billionaire Ron Burkle's private equity firm, this isn't Soho House dipping a toe in Sonoma County. This is a full-scale land grab dressed up in rooftop pools and central courtyards. The property has been in planning for two decades, approved 21 years ago for a hotel, spa, and winery, but sat dormant until Soho House leased it in 2020.

Kenwood sits between Sonoma and Santa Rosa, home to wineries like Landmark and St. Francis. It's quieter than Napa's Highway 29 circus, more rural than the area around Sonoma. 

Soho House doesn't just open resorts. They plant flags. Their members-only model, born in London in 1995, caters to a global elite looking for exclusivity wrapped in characterful comfort.

Now that crowd has a wine country outpost, and they're not weekend warriors.

For locals wondering if this marks the Bay Area's official takeover of Sonoma County, the answer is already under construction. When luxury hospitality follows tech money into your backyard, the conversation shifts from how much to how fast.

This development pulls attention south from Healdsburg and could redirect tourist dollars to central Sonoma Valley at a time when younger consumers are showing less interest in wine. Whether that's good news for your property value or your weekend traffic depends on which side of the vineyard fence you're sitting on.

Real Estate News

The Hidden Cost of Healdsburg Homeownership

That $5,000 monthly mortgage in Healdsburg? Try $6,040 once reality hits. We've just released a deep-dive video exposing what most agents won't tell you about the true cost of owning property in this premium wine country market—and the numbers are eye-opening. 

After helping dozens of buyers navigate Healdsburg real estate, we're pulling back the curtain on six major cost categories that can blindside unprepared homeowners.

Watch our latest video to discover:

Why property taxes aren't actually 1%—they're 1.17% with hidden fees including school bonds, water district charges, and Mello-Roos assessments

The fire insurance costs hitting Healdsburg, with 21% rate increases in 2024 and California's FAIR Plan costing $8,400 versus $2,600 for traditional coverage

How Lake Mendocino's single-source water supply is driving 48% service charge increases by 2026 and 53% wastewater hikes since 2022

The neighborhood pricing trap where two-block differences create 20% price variations

Why tourism's double-edge sword generates $11 million annually but forces locals to  rethink when they eat out in downtown.

The bottom line: $12,489 per year ($1,040/month) in extra costs beyond your mortgage. This isn't about scaring you away from Healdsburg—the world-class wineries, restaurants, and community are genuinely exceptional. This is about making sure you budget correctly so you can actually enjoy living here instead of drowning in unexpected expenses. Out-of-town agents won't give you this level of local detail because they don't live it daily. We do.

Download our 30+ page guide to “Moving to Healdsburg” or get in touch to talk about the real numbers for your specific situation

Real Estate News

Wine Country Insurance Crisis Eases: State Farm, Farmers Reverse Course

Here's something that might actually make you smile when you open your insurance bill: Wine Country homeowners are finally catching a break on the availability front, even if the affordability part still stings a bit.

After years of watching major insurers flee California faster than tourists leave Napa on a Monday morning, two of the state's biggest players are reversing course. State Farm just agreed to stop dropping policy holders through the end of 2025—no more mass non-renewals that left homeowners scrambling. And Farmers Insurance? They've completely lifted their cap on new policies, meaning they're actually accepting customers again instead of turning them away at the door.

The backdrop here matters: Sonoma County saw median home insurance premiums jump nearly 40% over the past decade to $1,834 annually—the steepest increase in the nine-county Bay Area. Lake County neighbors are paying $2,559 (an 86% increase since 2014), while some Santa Rosa homeowners forced onto the FAIR Plan are shelling out $6,400 a year. That's real money affecting real decisions about whether people can afford to stay in their homes.

Here's what's changing:

• State Farm secured a 17% emergency rate increase in May 2025 (effective June 1st renewals), but in exchange agreed to no new block non-renewals through end of 2025—giving current customers stability

• The company is still pursuing a total 30% rate increase for homeowners, with a full hearing expected to determine final rates (and potential refunds if the approved rates come in lower)

• Farmers Insurance eliminated all caps on new homeowners policies statewide in November 2025, opening the door to thousands of new customers in wildfire-prone areas

• Farmers is directly marketing to about 300,000 consumers in distressed areas starting early 2026, though they've requested a 6.99% average rate increase

The reality check? Insurance Commissioner Ricardo Lara's deal with insurers was designed to restore availability, not affordability. Companies can now use forward-looking climate models and pass reinsurance costs to policyholders in exchange for covering more properties in high-risk areas. Translation: you'll have more options, but you'll pay for them

What this means for Wine Country homeowners:

If you've been stuck on the FAIR Plan or cobbling together coverage from multiple surplus lines carriers, this opens new doors. Competition typically helps—when Farmers lifts caps and State Farm commits to keeping customers, other insurers face pressure to expand too. But experts warn prices will keep climbing as insurers factor in climate risk and recent catastrophic losses, including the $150 million in charges being passed to policyholders from January 2025's devastating LA fires.

The practical move? Shop around now while insurers are expanding, document any wildfire mitigation work you've done (insurers must offer discounts for it under the new rules), and consider bundling policies. Farmers is bumping their home/auto bundle discount from 15% to 22%, which could offset some of the rate increases.\n\nFor the first time in years, the conversation is shifting from "Can I get insurance?” to "What are my options?" That's not a perfect outcome, but in Wine Country's wildfire reality, it's progress worth noting

Local News

Healdsburg Makes Travel Writer's List of 7 Must-Visit Cities—Where Would You Live?

Our little wine country gem just got some serious national love. Travel writer Emily Hart—who's been to all 50 states—named Healdsburg one of seven cozy winter cities worth visiting in her latest piece for Business Insider. But here's where it gets interesting: we want to know which of these seven cities YOU'D actually consider calling home (besides Healdsburg, of course).

The Lineup:

Healdsburg, California** – That's us! Hart raves about our town square, boutique shops, wine tasting rooms, and the magical "Merry Healdsburg" tree-lighting event. Plus, 20+ new high-end restaurants (some Michelin-recognized) and $29 million in visitor spending prove we're not just pretty—we're thriving.

Boulder, Colorado

Pearl Street's pedestrian mall offers cozy restaurants, outdoor gear shops, holiday markets, and that iconic Boulder Star twinkling on Flagstaff Mountain. Mountain town vibes without the full ski resort price tag.

Aspen, Colorado 

Upscale everything: pedestrian-only streets, high-end shopping, world-class skiing, and—wait for it—a Snow Polo Championship you can walk to from downtown. Luxury with a capital L.

Park City, Utah

 Historic Main Street meets Western charm with snowy lights, upscale dining, excellent skiing, and that “I'm living in a postcard feeling year-round” feeling

Charleston, South Carolina

Southern elegance personified. Cobblestone streets, pastel homes, wrought-iron balconies, and enough Christmas decor to make Clark Griswold jealous. Mild winters are a bonus.

Bayfield, Wisconsin

Lake Superior harbor town with brick storefronts, cozy cafés, boutique lodging, and that welcoming Midwestern energy. Think small-town serenity with lakeside views.

Vail, Colorado

European-inspired architecture, mountain backdrops, ice skating rinks, and "haute chocolate" at the Four Seasons. It's basically the Alps without the passport.

The Fun Part:

Each city has its pros and cons, right? Healdsburg's got the wine, weather, and walkability—but home prices have jumped 66% in a decade. Boulder's outdoorsy paradise comes with thin air and even thinner parking spots. Aspen is glamorous but might require a second mortgage just for groceries. Charleston is charming but humid summers could melt your makeup off. Bayfield is peaceful but those Wisconsin winters aren't messing around. Park City balances history and recreation but gets packed during ski season. Vail is stunning but you'll be competing with tourists for that perfect latte.

Here's What We Want to Know: If you had to pick a second-choice city from this list to live in (Healdsburg being number one, naturally), which would it be and why? Are you drawn to mountain adventures in Colorado? Southern hospitality in Charleston? Lakeside tranquility in Wisconsin? Each destination offers something different—from ski-in-ski-out luxury to wine country warmth to historic cobblestone charm.

Current Listings

What’s Happening This Week

NOT King Cole Trio 
Where: Spirit Bar at Hotel Healdsburg, 25 Matheson Street (Healdsburg, CA)
When: Saturday, January 3, 2026 • 6:00 PM – 9:00 PM
Why You Should Go: Golden age jazz meets Wine Country elegance with Adam Shulman on piano, Jeffrey Burr on guitar, and Eric Markowitz on bass—no cover, just great vibes and Dry Creek Kitchen's menu.

Spike Sikes and His Awesome Hotcakes 
Where: Elephant in the Room, 177-A Healdsburg Avenue (Healdsburg, CA)
When: Sunday, January 4, 2026 • 6:00 PM
Why You Should Go: Ring in the first Sunday of 2026 with rockabilly blues from this multi-instrumentalist who knows how to get the joint jumping—$10 cover for a night of high-energy fun.

Scott Guberman & Friends featuring Mark Karan & Michael Land 
Where: Murphy's Irish Pub, 464 First Street East (Sonoma, CA)
When: Friday, January 2, 2026 • 7:30 PM
Why You Should Go: Start your year with this stellar lineup of musicians who've played with the Grateful Dead family—serious chops in an intimate pub setting.

Share The Love

• Got friends dreaming of wine country life? Share this newsletter and save them from doomscrolling Zillow

• Follow our somewhat professional adventures on Instagram @bruingtonhargreaves

• Check our YouTube channel for weekly local market updates (and occasional winery mishaps)

David & Jonathan here – the guys who write about real estate but really just want to talk about our favorite taco trucks. Hit us up about anything Sonoma County (or beyond). Whether you're buying, selling, or just want to know which wineries actually welcome dogs – we've got you covered.