With Prices on the Rise, Waiting Could Cost You
As we move into 2025, the Sonoma County real estate market is showing signs of renewed strength. Whether you’re a first-time buyer or a seasoned investor, all indicators suggest that buying now—rather than waiting—is a smart move. Let’s dive into the latest data, trends, and what they mean for you.
Here’s a visual snapshot of the Sonoma County housing market over the past six months:
📈 Green Line – Median Home Prices
📉 Blue Dashed Line – Active Listings
As you can see:
- Home prices have steadily increased from $785,000 in September 2024 to $817,500 in February 2025.
- Inventory has sharply declined, dropping from 225 active listings to just 141 in the same period.
This chart highlights a classic supply and demand scenario: fewer homes available + steady buyer interest = rising prices. A tightening market like this often means it’s better to act sooner rather than later.
📊 Sonoma County Housing Market Snapshot – Early 2025
According to Redfin, the median sale price for homes in Sonoma County rose to $817,500 in February 2025, a 2.2% year-over-year increase. This is a modest but clear sign of market appreciation following a period of correction and stabilization.
Other key figures:
- Median Days on Market: 41 days (a slight drop from the previous quarter)
- Percent of Homes Sold Above Asking: 27%
- Inventory Levels: Dropped from 225 to 141 active listings over the last 3 months
- Price per Square Foot: Currently averages around $518, up from $502 six months ago
📈 What’s Driving Prices Up?
1. Tight Inventory
With fewer homes on the market, competition is heating up—especially for move-in ready or well-priced homes. This puts upward pressure on prices and gives sellers more negotiating power.
2. Steady Buyer Demand
Despite interest rates hovering in the 6–7% range, demand remains strong in Sonoma County due to:
- Lifestyle appeal (vineyards, open space, community charm)
- Proximity to the Bay Area
- Work-from-home flexibility increasing demand for homes with more space
3. Economic & Lifestyle Appeal
Sonoma County continues to attract buyers seeking a balance between rural living and urban access. Outdoor lifestyle, wine country, and local food scenes continue to be a major draw, especially post-pandemic.
💰 Why Buying Now Could Save You Money
If you’re waiting for a “better time” to buy, consider this:
Waiting just 6 months could mean paying more—both in purchase price and in mortgage interest.
For example, a home purchased today at $817,500 with a 6.5% interest rate will cost significantly less over time than that same home priced at $850,000 with a higher rate.
And if home appreciation continues at even a 2% quarterly pace, you could be looking at $16,000–20,000 more for the same home by summer or fall.
🏠 Real Buyer Tip: “Marry the Home, Date the Rate”
Interest rates are still expected to soften later this year, so the common strategy right now is to buy the home you love, and refinance later. This way, you lock in today’s prices and build equity while waiting for lower rates to reduce your monthly payment down the line.
📍Why Sonoma County?
- 🌳 Natural beauty & outdoor lifestyle
- 🏘️ Tight-knit communities like Sebastopol, Santa Rosa, and Healdsburg
- 🍷 Access to world-class wine, dining, and recreation
- 🏫 Strong schools and local amenities
- 🚗 Manageable commute to Bay Area tech hubs
As home prices begin their climb and inventory shrinks, buying a home in Sonoma County now is like finding your own pot of gold. Whether you’re planting roots or investing in your future, getting ahead of the curve in a rising market puts you in a position of strength.
If you’re ready to explore what’s available—or just want to talk strategy—I’m here to help.