Home prices have been declining across the Bay Area — except for these four ZIP codes

• More real estate:The Bay Area housing market is flashing a key warning sign.

All four of those ZIP codes were in Sonoma County, and even those upticks were relatively small, according todata from real estate listings website Zillow.

The rest of the Bay Area’s ZIP codes saw typical home values decrease from June to December, with San Francisco neighborhoods and a handful in Contra Costa County logging the biggest declines.

While home values didgrow in many areas across Californiaover the past six months, the picture was much different in San Francisco and the Bay Area, according to Zillow experts.

“The Bay Area is cooling faster than most parts of the country, which is not surprising since it’s the most expensive market in the country,” said Zillow spokesperson Matt Kreamer.

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Out of the top 15 Bay Area ZIP codes where home values fared the best over the past six months, either growing slightly or seeing small declines, 14 were in Sonoma County — which, Kreamer noted, is generally “falling more slowly than the Bay Area at large.”

Of those areas where home values are higher than they were six months ago, growth largely happened at the beginning of the period, in the late summer, he added.

Helping boost home values in Sonoma County has been that buyers can find less expensive properties there compared with San Francisco, and also get more square footage for their money, Kreamer said.

“So if you’re a Bay Area buyer looking for more room and more affordable options as mortgage rates have risen, Sonoma County is your best bet,” he said.

Hottest ZIP code: Sonoma and Boyes Hot Springs

In the 95476 ZIP code, which includes the city of Sonoma as well as Boyes Hot Springs in the unincorporated county, average home values increased from $1.07 million to $1.09 million from June to December 2022. That modest 1.8% increase was the highest of all ZIP codes in the Bay Area.

In the Sonoma market, properties run the gamut from “elegant multimillion-dollar homes in the hills, in town and the valley floor, to modest cottages and everything in between,” said Compass agent Kathleen Leonard. Near Sonoma’s town center and plaza, the homes east of Broadway are older, while those west of Broadway are slightly newer, she said.

“While we do have some ‘neighborhoods,’ it doesn’t feel suburban, but has a small-town feel,” she said. “It becomes more rural to both the east and west of town.”

Nearby Boyes Hot Springs is one of a series of villages collectively referred to as “The Springs,” Leonard said, also including El Verano, Fetters Hot Springs and Agua Caliente.

Developed about 100 years ago, it was a destination by train for San Franciscans who wanted to enjoy the warm summer weather and hot springs, she said.

Now, Boyes Hot Springs is recognized as “a more affordable area than Sonoma proper,” Leonard said, with a housing stock that includes many small older cottages. She described the area as bustling with “hip restaurants, music venues and fun shops.” The most prominent business in the area is Fairmont Sonoma Mission Inn & Spa, with a large spring-fed swimming pool, she added.

Asearch of homes for salein Boyes Hot Springs shows awide range of prices, including many homes listed for under $1 million.

Ceci Cook, a Realtor with Compass, said that over the past six months she has seen retirees and young families sell their homes in other parts of the Bay Area and buy in the 95476 ZIP code, “and still have money to live on from the sales of their home.”

Her office has even heard occasional reports of multiple offers on homes that are “well-priced and well-presented,” she added.

轻微的正增长的邮政编码没有surprise her. “This part of Sonoma County is an established community with favorably more temperate weather,” she said.

Coldwell Banker real estate agent Christine Benson concurred that the area is “still affordable compared to other nearby Bay Area communities,” as well as “highly desirable and safe.”

“We are a very tight-knit community with a wonderful quality of life,” Benson said. “There are many outdoor activities, regional hiking trails, golf courses and many community events throughout the year.”

The area offers “a slower pace of life living in the country,” but is still accessible to San Francisco and Lake Tahoe, Cook said.

The region includes a mix of families with children, retired couples and tech employees who are able to work remotely, as well as individuals taking their equity from an existing home and buying in the area, the real estate agents said.

However, Leonard said the ZIP code is changing into “more and more a retirement community mixed with families of school-aged children.”

According to the U.S. census, the median age in 95476 is 52.3, the population is 67% white and 26% Hispanic, and the median household income is $96,029.

大多数的家庭there are single-family dwellings with parcels typically much bigger than other ZIP codes in Sonoma County, with homes 2,000 square feet or bigger, Cook said.

Buyers can also find everything from small condos that require little maintenance, to 55-and-older communities, to large vineyard properties, Benson said.

The agents cited a few downsides, including thewildfire risk in Sonoma County, as well as a longer drive to get to some popular stores such as Costco, Target and Trader Joe’s, which are 20 to 30 minutes away in Petaluma, Rohnert Park and Napa.

Runner-up: Santa Rosa

The Bay Area ZIP code with the second-highest home value increase from June to December was 95404 in Santa Rosa, rising 0.6% from $826,255 to $830,950.

This Sonoma County ZIP code encompasses a large swath of east Santa Rosa, approaching Rohnert Park on the south side and Calistoga on the north side. The median age is 41.8, the population is 63% white, 22% Hispanic and 7% Asian, and the median household income is $88,574, according to the U.S. census.

According to Daphne Peterson, a real estate agent with Keller Williams Realty, the ZIP code “has a diverse population” and includes a mix of starter homes, workforce housing and a couple of historic districts.

“It’s a very beautiful area,” she said. “It’s flat, and you can see the hills from there. It has excellent schools.”

It’s a good area to live in because of its “excellent and diverse employment base, proximity to San Francisco, incredible recreational opportunities and scenic beauty,” Peterson said.

The ZIP code also has “one of the largest concentrations of homes in Santa Rosa, filled with a good diversity of housing with a higher-than-average concentration of luxury homes,” said Laura Hall, a senior sales associate with Corcoran Icon Properties.

AZillow search of listingsin the ZIP code show a range of properties, from modest homes priced under $1 million to large, multimillion-dollar luxury properties. Hall noted that the luxury market is year-round, so the market continues to trend upward during the fall in areas with higher-priced homes.

But affordability also draws many potential buyers to Sonoma County, Hall said, with starter homes hovering around $750,000 versus $1 million in some other Bay Area counties.

At the same time, a dearth of new construction means supply remains short, while demand continues to increase, agents said.

“For now, we are seeing a lot of first-time home buyers surface, taking advantage of a slower market with more inventory for them to take in,” Hall said. “This market will continue to thrive throughout the year in my opinion.”

Young families with the option to work from home still continue to move into the county, looking for “a better quality of life for their needs,” said Hall.

“We also have a large influx of second-home buyers who may use their new home on a part-time basis, but have the intention of retiring here in a few short years,” she said.

Biggest decreases in San Francisco ZIP codes

On the other end of the spectrum, six San Francisco ZIP codes appeared among the 10 with the greatest home value declines in the Bay Area. The biggest drop, 10.2%, was in the 94116 ZIP code on the west side of San Francisco, encompassing the Sunset, Inner Parkside and Forest Hill neighborhoods, as well as part of West Portal. In second place, with a 10.1% decline, was 94530 in El Cerrito, across the bay from San Francisco in Contra Costa County.

The 94112 ZIP code in the southern part of San Francisco had the region’s third-biggest decrease, 10%. It includes Balboa Park, Cayuga Terrace, Excelsior and City College of San Francisco. The 94134 ZIP code just west of the Bayview, encompassing Little Hollywood, parts of Portola, University Mound, and McLaren Park, had the fourth-largest decline of 9.9%.

“This is simply because San Francisco is so expensive, and as mortgage rates have gone up, it’s priced a growing share of potential buyers out of that market,” Kreamer said. “With fewer buyers, there’s less competition and prices begin to fall as sellers cut prices to entice bids.”

Despite the declines, Kreamer noted that the news isn’t all bad. “There is still a long way to go before home value declines take away the incredible gains made during the pandemic,” he said. “Ultimately the market will rebalance and stabilize.”

Kellie Hwang is a San Francisco Chronicle staff writer. Email: kellie.hwang@sfchronicle.com Twitter: @KellieHwang