Home sales surged in October, just before mortgage rates jumped 📈
“The wise man bridges the gap by laying out the path by means of which he can get from where he is to where he wants to go.” – J.P.
October was certainly a busy month for market activity!
Across the state, we saw a year-over-year increase in the number of available homes for sale (+23.2%) and the number sold (+12.5%). The average time on the market continues to hover at just a bit above one month (36 days).
We see these increased inventory numbers reflected locally in many areas, with double-digit percentage increases in available homes for sale.
There were a few areas that still struggled with low inventory and saw year-over-year dips, including San Francisco and San Mateo counties.
However, even those two counties did see a nice year-over-year increase in the number of homes sold in October compared to last year.
So what’s expected in the months and year ahead?
Market activity tends to slow down during the holiday season, though that can create opportunities for determined buyers when others may be taking a break. As for 2025, NAR Chief Economist Lawrence Yun is forecasting a 9% increase in home sales.
What about mortgage rates?
According to Yun, “Are we going to go back to 4%? Per my forecast, unfortunately, we will not. It’s more likely that we’ll go back to 6%. That will be the new normal, bouncing around 5.5%-6.5%.”
It’s important to remember that these are just predictions, not guarantees, and no one knows exactly what will happen with mortgage rates next year.
With all that in mind, let’s look at what’s happening locally…
➡ In Sonoma County, compared to the same period last year, the median sales price for single-family homes decreased 3.1% to $824K; condos/townhomes decreased 14.7% to $413K.
➡ Average days on market was still quite low at 52 days for single-family homes and 56 days for condos/townhomes.
➡ The number of residential properties sold was 388, moderately up compared to the same period last year.
Click here to read the full Sonoma County October Market Report.
Real estate is a long game, so monthly market fluctuation shouldn’t distract you from your long-term goals. If you have questions about the market, please reach out! I can provide you with insights and information that will help you weigh the options so that you can decide what’s right for you.
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