Sonoma County: Q1 Results
First-quarter home sales started slowly in Pacific Union’s Sonoma County region, but as the inventory of available houses began to come to market, the velocity of sales picked up accordingly. By the end of March, a familiar pattern had emerged: Buyer demand outstripped the supply of homes, bidding wars were commonplace, and sales prices rose significantly.Homes at lower price points saw the strongest demand, but limited availability held back sales. A surplus of distressed properties supplied the lower end of the market in recent years, but that stream has since slowed to a trickle. With real estate activity moving upmarket, sales during the first quarter were strongest in the $400,000-to-$600,000 range and homes priced $1 million and higher. Sales velocity remained strong across all price points, however, and as soon as a well-priced property came on the market, it quickly went into escrow.Looking Forward: Sonoma County’s real estate markets are entering a period of continued equity growth. Increased demand, and limited supply, over time will favor sellers. We expect buyer demand to remain exceptionally strong. Sellers, after more than a year of regaining equity, may find new incentives to put their homes on the market. We look forward to a busy spring and summer.

Defining Sonoma County: Our real estate markets in Sonoma County include the cities of Cotati, Healdsburg, Penngrove, Petaluma, Rohnert Park, Santa Rosa, Sebastopol, and Windsor. Sales data in the charts below includes all single-family homes and farms/ranches in Sonoma County.

Median Sales Price
The median sales price represents the midpoint in the range of all prices paid. It indicates that half the prices paid were higher than this number, and half were lower. It is not the same measure as “average” sales price.
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Months’ Supply of Inventory
The months’ supply of inventory is a measure of how quickly the current supply of homes would be sold at the current sales rate, assuming no more homes came on the market. In general, an MSI below 4 is considered a seller’s market; between 4 and 6 is a balanced market; and above 6 is a buyer’s market.
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Average Days on the Market
Average days on the market is a measure that indicates the pace of sales activity. It tracks, on average, the number of days a listing is active until it reaches “pending” status, meaning all contingencies have been removed and both parties are just waiting to close.
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Percentage of Properties Under Contract
Percentage of properties under contract is a forward-looking indicator of sales activity. It tracks expected home sales before the paperwork is completed and the sale actually closes.
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Sales Price as a Percentage of Original Price
Measuring the sales price as a percentage of the final list price, which may include price reductions from the original list price, determines the success of a seller in receiving the hoped-for sales amount. It also indicates the level of sales activity in a region.
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A Closer Look at Sonoma County
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