PAUL & LYNN FEHRMAN REAL ESTATE ASSOCIATES

CENTURION HONOR SOCIETY AWARD WINNER 2021

Sonoma County Real Estate Update: August 2023

August 28, 2023

Here is a brief summary of the current real estate market in Sonoma County, California:

• Housing prices in Sonoma County have cooled slightly from their peak in early 2022 but remain relatively high due to continued strong demand and low inventory. The median home price as of August 2022 was around $825,000.

• Sales volume has slowed some compared to the frenzied pace of 2020 and 2021, but the market remains competitive with many homes still receiving multiple offers. Homes priced appropriately are selling quickly while overpriced homes are taking longer to sell.

• Inventory remains low, with only 1-2 months of supply available. This gives sellers an advantage but makes it challenging for buyers. More new listings are entering the market compared to last year, providing buyers with more options.

• Mortgage rates have risen significantly in 2022, going from around 3% at the start of the year to over 5% currently. Higher rates are impacting affordability, especially for first-time homebuyers.

• The rental market is very tight, with rental vacancy rates under 5%. Rents have increased 10-20% from a year ago.

• Overall the Sonoma County housing market remains strong but is experiencing a shift towards more balanced conditions between buyers and sellers. The market is expected to continue moderating into 2023.

Paul Fehrman
DRE# 01065819

Lynn Fehrman
DRE# 01969747