By Stephanie Johnson
Published June 2026
May is traditionally one of the busiest months in the Sonoma County housing market, and this year's numbers reflect a market that remains highly competitive despite a significant decline in new inventory. Demand continues to outpace supply, sellers are receiving strong offers, and home prices have maintained upward momentum.
Below is a clear year-over-year snapshot:
The Big Picture: Rising Prices, Limited Inventory
The median sales price increased from $830,000 to $840,000 year-over-year, reflecting continued resilience in Sonoma County home values despite broader economic uncertainty.
The most significant trend remains inventory constraints. Months of supply declined from 5.8 months last May to just 3 months this year, representing nearly a 50% reduction in available inventory. At the same time, the number of homes sold increased slightly, demonstrating that buyer demand continues to absorb available inventory at a healthy pace.
Sellers are also receiving an average of 100.3% of their asking price, indicating that well-priced homes are still attracting strong buyer interest and, in many cases, competitive offers.
Inventory: Supply Remains Tight
New listings dropped sharply from 618 homes last May to just 381 this year, a decline of more than 38%.
Despite the reduction in fresh inventory entering the market, sold listings increased from 376 to 382 transactions. This imbalance highlights a market where buyer demand continues to outpace the number of homes becoming available.
When inventory remains constrained while sales activity continues, several market dynamics typically emerge:
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Buyers have fewer options to choose from
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Competition increases for desirable properties
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Sellers gain additional leverage during negotiations
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Pricing remains supported by limited supply
If listing activity remains subdued through the summer months, these conditions could continue to increase home values and seller advantage.
Days on Market: Homes Are Moving Faster
Average days on market improved from 57 days last year to 47 days this May, while cumulative days on market declined from 36 to 30 days.
These improvements suggest that buyers are making purchasing decisions a bit more quickly than they were a year ago. Combined with low inventory levels, the data indicates that well-positioned and well-prepared homes are finding buyers relatively fast.
Properties that are properly priced, professionally marketed, and presented in move-in-ready condition continue to perform best in the current environment.
Price Per Square Foot: A Slight Adjustment
The average price per square foot declined from $595 to $580, a decrease of approximately 2.5%.
While this may initially appear to signal weakening values, it is important to view this metric alongside the increase in median sales price. Changes in price per square foot can often reflect shifts in the types of homes selling during a given month rather than a decline in overall market strength.
With median prices rising and inventory remaining tight, the broader market continues to show stability and resilience.
How This May Compares to Seasonal Trends
May is typically one of the strongest months for buyer activity in Sonoma County.
What aligns with seasonal expectations:
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Active buyer demand
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Strong sales activity
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Competitive pricing conditions
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Many sellers receiving full asking price or better
What stands out this year:
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Significant decline in new listings
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Inventory levels nearly cut in half year-over-year
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Faster market times
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Continued upward pressure on pricing
The defining story of May remains the imbalance between supply and demand.
Seller Takeaways
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Inventory remains substantially lower than last year
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Buyers are actively competing for available homes
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Sellers are receiving more than asking price on average
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Homes are selling faster than they were a year ago
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Market conditions continue to favor well-prepared sellers
For homeowners considering a sale, current conditions remain favorable due to limited competition and steady buyer demand.
Buyer Takeaways
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Inventory remains limited across many price points
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Desirable homes may attract multiple offers
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Fast decision-making is increasingly important
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Strong preparation and financing remain key advantages
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Buyers may face continued competition if inventory does not improve
While conditions remain competitive, opportunities still exist for buyers who are prepared and working with a clear strategy.
Looking Ahead
Sonoma County's May market continues to demonstrate the effects of limited inventory and consistent buyer demand. Home prices remain stable to rising, homes are selling faster, and sellers continue to receive strong offers.
As we move further into the summer market, the key factor to watch will be whether new listings increase enough to ease current inventory constraints. If supply remains limited, competitive conditions are likely to persist throughout the coming months.
For more information on the Sonoma County market, or for specific data tailored to your neighborhood, feel free to reach out and book a call — I'm here to help you navigate it.