S
ales of single-family homes on Petaluma's Westside led the pack, with a remarkable 18% increase to $640 per square foot in February. This outpaced all other sub-markets in Sonoma County.

    February's data was a classic example of market volatility as it adjusted to form a new trend line. According to BAREIS MLS, the county-wide average sold price per-square-foot (PSF) for single-family homes dipped 2% to $524, down from last year at this time. This decline follows a rocky start to 2024, where the highest average sold value was $1,126,000 in one month.

    Among Sonoma County's 15 sub-markets, only seven showed improved values over the same period last year. Petaluma's Westside and Pacific Coastal region stood out with gains of 18% and 10%, respectively, to $640 PSF and $800 PSF. Healdsburg and Northwest Santa Rosa also rallied 5% each to close at $655 PSF and $484 PSF.

    Other sub-markets showed more modest growth or declines. Sebastopol and Russian River region held steady near last year's levels, while Northeast Santa Rosa trimmed 2%. Oakmont surrendered 4%, Cotati & Rohnert Park slipped 5%, Windsor sacrificed 7%, Southeast Santa Rosa shed 8%, and Sonoma, Glen Ellen, and Kenwood fell 34%.

    Inventory levels of available homes are increasing, a welcome trend in a market that has struggled with flat sales volume over the past two years. Closed deals are already 12% ahead of last year's pace, indicating a market on the mend.

    As interest rates fluctuate, buyer behavior is also changing, impacting demand in certain niches where financing plays a larger role. With more homes available and buyers responding to rate changes, this could be a turning point for Sonoma County's real estate market.