After a strong first quarter, the East Bay real estate market has cooled noticeably over the past few months. Sales have slowed significantly, accompanied by a dip in prices and a sharp increase in available inventory which is now more than 45% greater than this time last year.
The slowdown in buyer activity appears to be driven by a combination of national and local factors, including stock market volatility, economic uncertainty, and shifting priorities among tech workers who are rethinking East Bay purchases due to evolving return-to-office policies.
That said, the market is not moving uniformly. Homes in highly desirable neighborhoods; especially those that are clean, updated, and well-priced will continue to attract strong interest and, in many cases, multiple offers. In contrast, properties that are dated or located in less sought-after areas are more likely to sit longer and experience price reductions.
For buyers who have been waiting on the sidelines, the current environment presents a great opportunity: less competition, more inventory to choose from, and the ability to negotiate terms that were nearly impossible just a few months ago.
May Market Highlights
• Sales Activity
In May, 1,406 single-family homes sold across the East Bay—a decline of 11.4% from the 1,586 transactions in May 2024. This marks a clear shift from the momentum seen earlier in the year. Ongoing uncertainty in the broader economy and a decline in tech-driven demand are key contributors to the cooling trend.
• Inventory Trends
Inventory has risen sharply compared to a year ago, offering buyers a broader range of options. The number of active listings in May is more than 45% greater than this time last year. However, supply remains uneven—still tight in high-demand neighborhoods, while looser in areas with less buyer interest or where homes need updates. This imbalance is producing mixed results across the region.
• Median Sales Price
The median sales price in May was $1,165,000, down 3% from $1,200,000 in May 2024. Despite some price drops, move-in ready homes in popular areas remain strong performers. Meanwhile, homes requiring updates or in less competitive locations are taking longer to sell. We anticipate pricing to stabilize over the coming months as the market continues to adjust.
10 Homeownership Facts for a Better Understanding of Real Estate Today
Check out these timely housing insights during National Homeownership Month this June.
What’s the biggest financial transaction a person will make in their lifetime? For many, it’s buying a home. Homeownership is a significant milestone that can provide stability, promote financial wellbeing, and serve as a backdrop for life’s memories.
During National Homeownership Month, learn 10 facts about homeownership in the U.S. today:
1. The current rate of homeownership is 65.1%
In the first quarter of 2025, the U.S. census revealed the latest homeownership rate to be 65.1%, a stat that signifies the quantity of owner-occupied homes across the country. Just a few months prior, in Q4 2024, the rate was 65.7%. The national rate of homeownership hasn’t changed too much in recent years. In 2020, the national homeownership rate was 65.8%.
2. Interest rates on many mortgage loan products are hovering between 6% and 7%
As June gets underway, mortgage interest rates continue to linger largely in the mid to high 6% range depending on the specific loan product, according to Bankrate. For example, the 30-year fixed-rate loan is hovering around 6.9%. Various loan options – from FHA to VA to ARM and more – will likely present fluctuating rates that also can depend on other qualifying factors of a homebuyer.
3. The Baby Boomer generation is currently the largest cohort of U.S. homebuyers
Per the National Association of REALTORS® (NAR) 2025 Home Buyers and Sellers Generational Trends report, the Baby Boomer generation – comprising people between 60 and 78 years old – accounts for 42% of all homebuyers. This solidifies their standing as the largest share of homebuyers in today’s market, ahead of millennials (ages 26-44 years old) who account for 29% of all homebuyers – down 9% from one year ago.
4. 63% of the emerging generation of homebuyers (Gen Z and millennials) are ready to become homeowners
The majority of younger real estate consumers who don’t own a home yet are ready to do so, according to a survey from REMAX that analyzed the homeownership trends of people from Gen Z and millennial cohorts. REMAX data shows that 63% of prospective homebuyers surveyed indicated they are interested, eager and ready to become homeowners.
Is Your Home Outdated ?
As summer quickly approaches, the home project list tends to build. If you sell this summer, you’ll want your home to look its best. Ensuring your home’s exterior is updated should move to the top of your list. If your home looks outdated on the outside, it could lead to a bad impression of the inside. Here are three ideas to give your home a modern look.
Update Your Concrete
If you have uneven concrete that has cracks, it can be a sign to buyers that your home is dated. Refresh the concrete on any pathways or driveway for an updated, modern look. Decorative concrete will be a bonus for your buyers.
Paint Your Front Door
Your front door is often the first impression a buyer may have. So updating the paint on your door to subtly tie into the rest of your home can make a great first impression.
Add Exterior Path Lighting
Exterior lighting is a great way to give your home a modern look. Place them to highlight the path to your home or trees and shrubs. This type of lighting can be used for more than looks. You can also use it as a safety feature, which can make buyers feel confident in your home.
Work With Lloyd
If you are interested in buying or selling property in the East Bay region, please reach out to me any time! I would be honored to help you in any way.
