By Stephanie Johnson
Published September 2026
August closed out the summer selling season with prices and inventory both pulling back. Prices came down from July's high, but inventory is the data point to watch this month.
The Big Picture: Prices Cool, Inventory Tightens
Sonoma County's median sales price was $795,000 in August, down $40,000 from July's $835,000 and about 4% below last August's $830,000. On its own, that looks like a market slowing down. But available inventory continues to shrink.
Inventory: The Squeeze Continues
Inventory is the real story this month. At 2.9 months of supply, Sonoma County is firmly a seller's market, meaning less room to negotiate and faster decisions on well-priced, well-presented homes.
The change came fast. Supply dropped more than a full month since July and over 40% compared to August 2025. That's the sharpest year-over-year drop we've tracked in some time, and it reverses the more balanced conditions we saw earlier in the summer.
Days on Market: A Slight Uptick, Pace Still Steady
Homes averaged 60 days on market in August, up from 56 in July and just one day more than last August's 59.
That's a bit unusual. Tighter inventory usually means faster sales, but buyers didn't speed up in August. Even with fewer homes to choose from, they took their time, probably a combination of higher prices earlier in summer and the usual late-August distractions: end of summer vacations and back-to-school busyness.
Price Per Square Foot: Down From July, Still Ahead of Last Year
Average price per square foot was $559 in August, down from July's $591, about a 5% drop. Compared to last year, it's still up: $559 is roughly 3% higher than August 2025's $542.
July now looks like this year's peak rather than the new normal. August brought pricing back toward a typical late-summer range, while the year-over-year trend stays positive.
How August Compares to a Typical Year
A cooling median price and a small uptick in days on market are normal for August. As summer ends and school schedules take over, buyer urgency usually eases and prices soften from their midsummer high.
What's not normal is the inventory picture. Supply usually holds steady or loosens heading into fall. Instead, Sonoma County's inventory tightened sharply, the lowest point in the past year. A seasonal price pullback alongside a non-seasonal inventory squeeze is unusual, and it's worth watching in September.
Seller Takeaways
Inventory at 2.9 months is the tightest it's been in over a year. Sellers have less competition from other listings right now, depending upon exact market location.
Price per square foot is still up nearly 3% year-over-year. Don't treat July's peak as the baseline; August is a pullback from an unusually strong month, not likely the start of a downward trend.
Days on market ticked up to 60. Buyers are taking a bit more time, so pricing accurately from the start still matters to avoid long wait times.
With supply this tight, well-prepared listings head into fall with fewer direct competitors.
Buyer Takeaways
Months of supply dropped more than a full month since July. Expect less negotiating room than you may have had earlier this summer.
Median price is down from July's high, which offers some relief, but it's still close to where prices stood a year ago.
Days on market ticked up slightly, giving buyers a bit more time to decide without feeling rushed.
With inventory this tight, homes priced and presented well are still drawing quick interest. Be ready to move when the right one comes up.
Looking Ahead
The next couple of months will show whether August's inventory squeeze is temporary or the start of a tighter fall market. If supply keeps falling while days on market stays elevated, that's worth watching. It would mean buyers are being more selective even as their choices narrow.
For now, Sonoma County remains a market where preparation matters on both sides. Sellers benefit from less competition, buyers benefit from a small price pullback, but neither advantage is big enough to change the fundamentals. If you want to talk through what these numbers mean for your neighborhood or price point, reach out and I’m happy to walk through it with you.