September 2025 Northern California Real Estate Market Update

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.

With higher interest rates and longer selling times, is it the right moment to buy or sell a home? Northern California’s market is slowing, inventory is rising, and rates remain higher than last year, bringing both challenges and opportunities.

Locally, the market remains active. Currently, there are two single-family listings on the market, two homes under contract, two lease properties, two mobile homes, and three land listings. I’m also negotiating two offers and working with about five qualified buyers.

But here’s the thing: While activity remains steady here, the broader trends across Northern California reveal a larger story. To understand where the market is heading, let’s take a quick look at the three key factors that are shaping today’s market conditions:

1. Days on market. Homes now take about 60 days to sell, compared to 53 days last year. That extra time shows buyers are moving more cautiously.

2. Inventory. We’re at a 4.2-month supply, which is up 40% from last year. For buyers, that means more choices. For sellers, it means more competition and the need to price carefully to attract interest.

3. Interest rates. For the week of September 8th, rates dipped to 6.375%, fueling more activity than we saw earlier this year when rates were close to 7%. Still, they’re higher than last year’s 5.75%, which keeps affordability in check.

So, what does this all mean? Buyers today have more options but are taking their time. Sellers need to be strategic; if a home sits longer than 60 days, it often signals that a price adjustment is needed.

The bottom line is that experience makes the difference. Even though overall sales are at some of the lowest levels in nearly 30 years, we’ve stayed active and continue helping clients move forward.

If you’re considering buying, selling, or investing, now is the time to lean on expertise and a clear strategy. Reach out anytime at (707) 280-5040 shawn@hermosillogroup.com. I’d love to help you stay ahead in this market.