In October, the East Bay housing market shrugged off rising mortgage rates and a scorching heat wave. Sales remained strong, particularly in higher-end neighborhoods. Meanwhile, the steady march of return-to-office mandates picked up pace, with more tech firms requiring employees back on site. As a result, proximity to the workplace has become a top priority for many buyers, driving increased demand for homes in the inner East Bay. Outer East Bay areas saw a smaller, yet noticeable, uptick as well.

Homes moved off the market slightly faster in October, and overbidding kept steady compared to last month. A sharp increase in new listings in September set the stage for a significant rise in October’s pending sales, which reached their highest monthly total since spring 2022. Closed sales followed suit, posting substantial gains up 21% month-over-month and 36% year-over-year. While inventory is trending toward a more balanced state, demand isn’t keeping supply in check resulting in price reductions - up 80% as compared to one year ago. Though consumer confidence is up since one year ago it is nearly half 2019 highs, perhaps an explanation why when the drop in interest rate occurred in September, sales activity remained unchanged.

The market’s buoyancy in October sets a positive tone heading into the quieter winter months. Historically, November and December see a slowdown in new listings and sales activity, with many unsold properties temporarily withdrawn, particularly in higher-priced neighborhoods and parts of Oakland. However, opportunities remain. Sellers can use this time to prepare their homes for a promising early spring market, while buyers may find room to negotiate more favorable terms on the homes still available.

-Alex