By Stephanie Johnson
Published January 7, 2026
As we closed out 2025, Sonoma County’s housing market told a clear story of correction, recalibration, and renewed momentum. After a strong spring peak and a noticeable slowdown through late summer and early fall, the fourth quarter marked a turning point. Inventory tightened dramatically, buyer activity stabilized, and home prices began to rebound—ending the year stronger than where we were just a few months earlier.
This was not a straight-line market. Instead, 2025 rewarded patience, pricing discipline, and strategic decision-making from both buyers and sellers.
What Happened in 2025: The Big Picture
Pricing Trends
Home prices in Sonoma County started the year modestly, with January’s median sales price at $770,000. As buyer demand picked up and inventory increased, prices climbed steadily through the spring, peaking in May at $830,000.
From there, the market shifted. As more homes came to market mid-year, buyers gained leverage and prices softened. By September, the median price dipped to $755,000, marking the low point of the year.
In the fourth quarter, conditions changed again. Inventory fell sharply, competition stabilized, and prices began to recover—ending December at $800,000, well above the early fall low and signaling renewed price support heading into 2026.
Median Price Trend - Sonoma County
Inventory: The Market’s Driving Force
Inventory levels explain much of 2025’s movement.
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The year began with 1,265 active listings in January
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Inventory climbed steadily and peaked in May at 1,971 listings
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From summer onward, listings declined sharply
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By December, inventory dropped to just 644 homes, the lowest level Sonoma County has seen in over 20 years
As prices softened in the second half of the year, many sellers chose not to chase the market down. Some pulled their homes off the market, while others held firm and waited. At the same time, homes that were well-priced continued to sell, steadily absorbing available inventory. By year-end, supply had tightened dramatically—creating the foundation for rising prices.
Available Inventory Trend - Sonoma County
Days on Market: A Slower, More Deliberate Pace
While inventory reached historic lows, the market itself slowed.
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Days on market were lowest in the spring, dipping to 47 days
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As the year progressed, homes took longer to sell
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By December, average days on market reached 82 days
This longer selling timeline reflects a more cautious buyer pool—not a lack of demand. Sellers who stayed active and priced realistically generally achieved their goals, while others opted to step back and reassess. The result was a market defined by selectivity rather than urgency.
Average Days on Market - Sonoma County
Key Q4 2025 Metrics for Sonoma County
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Median Home Price: $789,000
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Average Price per Square Foot: $536
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Average Days on Market: 74 days
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Months of Supply: 3.0 months
These numbers reflect a market that is balanced on the surface, but increasingly supply-constrained underneath.
What This Means for You
For Sellers:
Low inventory is working in your favor—but pricing strategy matters more than ever. Buyers are active, but they are patient and informed. Homes that are positioned correctly continue to sell, even in a slower-paced environment.
For Buyers:
While competition isn’t as intense as before, opportunities still exist—especially for those prepared to act decisively when the right property comes along. With inventory at historic lows, there may be less room for negotiation as new buyers enter the market in 2026.
Looking Ahead to 2026
As we move into 2026, the key question will be whether inventory remains this tight. If supply stays constrained, price stability—and potentially upward pressure—could continue, even in a slower-moving market. Expect buyers to remain selective and sellers to benefit most when they lean into data-driven pricing and strong presentation.
If you'd like to discuss how these trends apply to your specific real estate goals, book a call with me. I'm always here to help.
Email: [email protected]
Phone: (415) 217-9479
Copyright © 2025 Stephanie Johnson. All rights reserved.