Sebastopol Real Estate Supply has been (relatively) low for a long time
Sebastopol, like Healdsburg, is one of the strongest markets in Sonoma County real estate. The number of units sold per month over the last two years ranged from a low of 6 units in December 2007 to recent highs of 26 units with sales generally in the teens and twenties. A bit bigger supply then Healdsburg but not much. Over the last two years the median price did not see the wide swings that Healdsburg did (Healdsburg has more outlier properties for sale well into the $3 to $6 million range). Sebastopol median price was $824,000 in October 2007 and is $575,000 today. Overall the median price decline was 30%, but I think it has been more affected by the preponderance of sales at the lower price points and on small to no acreage. Market values have declined somewhat but many sellers were able to withdraw their more expensive homes for sale. The market for those appears to be picking up. The median price hit a low of $475,000 in February of this year, as elsewhere in the county.
Interestingly, Sebastopol had only 5 months of inventory for sale in October 2007, trended above 7 for a few months and is now at 3.8 months supply. Inventory never really got too out of hand.