Market Update: What's New in the Sonoma, Napa, Marin, & Mendocino Real Estate?

By Shawn Hermosillo

Shawn Hermosillo, founder of Hermosillo Real Estate Group (HRE), is a Sonoma County native with deep roots in the community and a passion for real estate.

The local real estate market across Sonoma, Napa, Marin, and Mendocino counties has seen notable shifts over the past 30 days. Inventory is climbing, buyer activity is adjusting, and pricing strategies are more important than ever. Whether you’re a buyer or seller, staying informed about these trends is crucial to navigate the market with confidence. Here’s everything you need to know:

New listings and sales. Over the past 30 days, 2,953 properties have been listed as active on the market, while 507 homes have been sold. Additionally, 215 properties have gone under contract, reflecting ongoing movement despite shifting market conditions.

Year-over-year changes. Looking at year-over-year trends from January 2024 to January 2025, the total number of homes for sale has increased by 37%. For buyers, this means greater options and more opportunities to find the right property. For sellers, however, it underscores the importance of competitive pricing. Overpricing and expecting the market to catch up is no longer as effective, making accurate pricing key to a successful sale.

Supply, demand, and buyer behavior. While inventory has grown, the number of homes sold has dropped by 9%, indicating a slight pullback in demand. Additionally, only 14% of available properties have gone under contract compared to last year. This suggests that while demand remains strong, supply is increasing at a faster rate, creating more negotiating power for buyers.

With more homes available, buyers are in a position to be more selective. Properties sitting on the market for more than 30 to 60 days are seeing aggressive offers, often 5% to 10% below the asking price. Sellers must ensure their homes are priced competitively and presented well to attract strong offers in a crowded market.

So, what does this mean for you? Despite higher interest rates, opportunities still exist for both buyers and sellers. Buyers have more power to negotiate and can take advantage of the growing inventory to find a good deal, while sellers who need to move can still sell successfully by pricing their homes right and using strong marketing strategies.

If you have questions or need expert guidance, don’t hesitate to reach out. I’ll help you sell—or buy—a home at the best possible deal. You can call me at 707-591-0570 or send an email to hermosillogroup@gmail.com. I look forward to hearing from you!