Santa Rosa, CA Housing Market Report

The Santa Rosa housing market is currently navigating a period of stabilization as it transitions toward more balanced conditions. As of December 2025, the median home value stands at $702,437, reflecting a modest year-over-year decline of 3.09%. While the market saw a slight dip in valuations during the autumn months, prices have begun to firm up again, showing incremental growth since October. With active inventory rising by over 13% to 876 units and homes staying on the market for an average of 66 days, buyers now have significantly more leverage and selection than they did a year ago.

Despite the annual decrease in home values, the recent six-month trend suggests a resilient floor for property prices in the Santa Rosa-Petaluma metro area. After hitting a low point of approximately $697,000 in September and October, the market has seen a two-month rally. This recovery is occurring alongside a steady rental market, where median rents have remained flat with a marginal 0.45% increase to $2,512. The sale-to-list ratio of 0.99 indicates that while sellers are no longer seeing the aggressive bidding wars of previous years, properties are still selling very close to their asking prices, provided they are priced accurately for the current climate.

Looking ahead, the increase in inventory and the extension of the average time on market to 66 days suggest that the frantic pace of the past has cooled, offering a window of opportunity for patient buyers. Sellers should be prepared for longer marketing periods and must be mindful of the 11-day increase in time-on-market compared to last year. For buyers, the current environment provides a rare chance to negotiate without the pressure of immediate competition, though the recent month-over-month price increases suggest that the window for bottom-market pricing may be closing as the region enters the 2026 spring cycle.