The median home price in Sonoma County increased to $689,000 in February, an increase of 2% from January and 14% from a year ago. This median price sets a new record high for Sonoma County homes, where inventory shortages have been exacerbated by the October wild fires.
In order to secure homes, buyers should expect to bid at least 5% above asking price. Driving up the price were buyers that were scrambling to secure homes after the destruction of over 5,300 homes in the county. Since November, new listings increased by 26% and sales by 14%. Winter sales, normally subdued, were robust this winter with over 261 homes purchased in February alone.
County home sales typically increase in the Spring, which means an increase in bidding wars to secure a home. Many buyers are placing all-cash offers in an effort to win a bidding war. With fire victims receiving insurance cash payouts or back in the market to purchase after having rented, this means that buyer demand will again likely exceed supply, possibly driving up prices even further.
While home prices are becoming out of reach for many Sonoma County natives, buyers from the Bay Area and other counties where home prices are highest still consider Sonoma County an affordable place to live.