Sonoma County Real Estate Market – Summer 2025: Balanced with Submarket Nuance
By Stephanie Johnson, Your Sonoma County Real Estate Authority
Published August 5, 2025
Summary
- Median price across the county was $849,500 in July (flat YOY)
- Price per square foot is also steady at $566
- Inventory is down YoY, currently at 3.6 months
- Homes are sitting longer: 55 days on average (+22% YOY)
- Submarkets are diverging significantly in performance
County-Wide Market Overview
- Median Price: $849,500 (flat YoY)
- Average Price/Sq Ft: $566 (flat YoY)
- Average Days on Market: 55 (+22.2% YOY)
- Months of Supply: 3.6 (-25% YoY; was 5.4 in May)
- Listings Sold Over Asking: 31.2%
- Average Sold-to-List Ratio: 99%
- Total Active Listings: 1,084
- Listings on Market Over 60 Days: Over 50%
- Withdrawn/Expired in July: 135 listings
After peaking in May, inventory has tightened, but buyer selectivity remains high. Over half the current inventory has been sitting for more than 60 days—indicating buyers are passing on homes that are overpriced, need work, or miss key features like location or layout.
Submarket Performance: A Divided Picture
While the overall market appears steady, individual towns are seeing divergent trends. Stronger performance in lifestyle-driven markets is offset by price corrections elsewhere.
Top Performers
- Town of Sonoma: Median price $1.125M (+21% YoY)
- Sebastopol: Median price $1.295M (+12.9% YoY)
Declining Markets
- Petaluma: Median price $1.045M (-8.3% YoY)
- Healdsburg: Median price $1.260M (-6.7% YoY)
- Santa Rosa: Median price $766,950 (-4.1% YoY)
Areas like Sonoma and Sebastopol continue to attract lifestyle buyers and second-home interest, while more traditional markets like Petaluma and Santa Rosa are facing softness.
Takeaways for Buyers and Sellers
- Sellers: Properties in desirable locations that are in good condition and are fairly priced are still moving. Listings without clear value are being passed over or withdrawn.
- Buyers: With longer DOM and softer pricing in some areas, buyers have room to negotiate—especially on homes that have been sitting 60+ days.
- Everyone: Market segmentation is increasing. Strategic pricing and presentation are essential for sellers; timing and leverage awareness are key for buyers.
Let’s Discuss Your Sonoma County Real Estate Goals
The Sonoma County market is solid overall, but very nuanced beneath the surface. Whether you’re evaluating when to list, searching for the right property, or tracking long-term investment opportunities, I’d be happy to help you make informed, confident decisions.
Reach out today to schedule a seller or buyer consult with me. I'd love to help you achieve your goals!
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