Sebastopol's real estate market is experiencing a price correction, with values down 23.9% from last year. Home prices have increased 35.6% in the past month alone. At the current pace, all available homes in Sebastopol would sell out in just 1.0 months, indicating a continued supply shortage. Transaction volume is up 100% compared to what's typically expected this time of year. Approximately 40.0% of homes sold above list price, indicating some competitive segments within the market. Affordability remains a significant challenge in the Sebastopol market with the affordability index at 579.7. Market projections suggest continued price appreciation in the coming months as demand outpaces supply.