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East Bay Housing Market Update – May 2025

East Bay Housing Market Update – May 2025

The East Bay housing market is experiencing notable shifts this spring, offering both challenges and opportunities for sellers. Here's an overview of the current trends:

📉 Home Prices Experience Modest Declines

In April 2025, the East Bay saw a slight decrease in home prices. Median sale prices for single-family homes dropped by approximately 3.2% in Alameda County and 4.3% in Contra Costa County compared to the previous year. Condominiums experienced a 3% decline in Alameda and a more significant drop in Contra Costa.

📈 Inventory Levels Are Rising

Inventory has surged, with a 40%+ increase in available homes compared to last year. This rise is contributing to a shift toward a more balanced market. Currently, the Months of Supply Inventory (MSI) stands at 2.2 months in Alameda and 2.5 months in Contra Costa for single-family homes. Condo markets are leaning more toward buyers, with MSI at 4.7 and 3.9 months, respectively. 

💰 Mortgage Rates Influence Buyer Behavior

Mortgage rates have risen to nearly 6.9%, influenced by global economic factors. The Federal Reserve indicates that rates may remain elevated through the end of 2025, leading to cautious buyer behavior. Concerns over tariffs, tech industry layoffs, and stock market volatility are also contributing to buyer hesitancy. 

🏘️ Shifting Demand Toward Lifestyle and Affordability

Buyers are increasingly interested in more affordable and lifestyle-friendly neighborhoods such as Castro Valley, Martinez, and Union City. Factors like hybrid work models and the desire for community amenities are driving this shift. These areas are becoming top picks, offering growth potential for buyers and strong returns for sellers. 


💡 What This Means for Sellers

  • Strategic Pricing Is Crucial: With increased inventory and cautious buyers, setting a competitive price is essential to attract interest.

  • Highlight Lifestyle Benefits: Emphasize the unique features of your property and neighborhood that cater to the current buyer preferences for space and community amenities.

  • Prepare for Longer Selling Times: Homes may take longer to sell in this evolving market, so plan accordingly.

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