As summer's buying season wound down, the East Bay housing market was set for a potential uptick, driven by talks of falling mortgage rates. This shift was already visible as the pace of sales began to quicken. Despite the seasonal slowdown, over 60% of homes continued to sell for more than their asking price, reflecting strong competition in most neighborhoods. On average, homes that sold above asking fetched 8% more. However, in some areas of Oakland, there was a rise in the percentage of homes selling below the list price in August, though the discounts remained modest.

In August, the inventory of homes for sale in the East Bay dropped by 3% compared to the previous year. The average time on the market increased to 29 days, which is slightly less than the historical average of 30 days. This trend indicates that while competition remains, supply and demand are approaching a more balanced state—a positive sign for the market’s long-term stability. Homes in the East Bay were selling about a week faster than those in neighboring regions - the median being $1,640,000.

Looking forward to the end of the year, the market might experience favorable developments despite the typical slowdown in sales and pricing activity. Anticipated rate cuts by the Federal Reserve could reignite buyer interest, drawing more individuals into the market who have been waiting on the sidelines. As we move into the generally slower fall and winter months, these factors should contribute to stabilizing the housing market.

-Alex