Tomales Real Estate Market Index

It's crucial to look at absolute home prices compared to where they've been over the past year. When the median home price rises significantly above its rolling average, it signals high demand and low supply, indicating a market that Strongly Favors the Seller.

Price per square foot normalizes the data regardless of the size of the homes being sold. A steep upward curve here means buyers are willing to pay a premium for space.

Inventory is the lifeblood of real estate. A drastic drop in available homes creates artificial scarcity. When active inventory plummets below historical averages, sellers dictate the terms.

High sales volume typically indicates a healthy, liquid market. However, when paired with declining inventory, surging sales volume shows that properties are being snapped up the moment they hit the market.

Days on Market (DOM) is a direct measure of market velocity. When homes sit for months, buyers have the leverage. But when the median days to close shrinks to historically low levels, buyers are forced to make immediate decisions.

Bidding wars are the hallmark of a hot market. When the percentage of homes selling above their original list price spikes, it is a clear indicator of extreme buyer competition.

In a cooling, Buyer-friendly market, price reductions and negotiations below asking are common. A downward trend in this metric shows that sellers rarely have to concede on price anymore.