Last summer, Sonoma County housing market reached a median sales price high of $600,000. However, the all-time high record was just broken this March when the median sales price hit $639,000 due to strong demand and tight inventory. This new median price is double the median price 5 years ago, and represents a 14% increase from a year earlier.
This was the first time in 12 years that the County set a new record, and exceeded the previous record of $619,000 set in August 2005.
While this may have sellers celebrating, it puts buyers in sellers market which translates to multiple offers over asking price due to the low number of available and affordable homes.
In addition, there has been a significant increase in the number of luxury home sales. Homes selling for over $1 million or more increased 41% compared to the same time last year. The number of homes selling for less than $600,000 decreased by 24%.
Tight inventory and increasing home values have many buyers wondering when/if prices will level out.