Market Holds Ground Amid Uncertainty

The East Bay’s spring buying season gained further momentum in April, with closed sales up 10% from March. Price growth, however, remained modest—rising just 2.5% year-over-year to an average of $1,663,000. Month-over-month, prices actually dipped nearly 7%, reflecting the lingering effects of broader macroeconomic pressures. Volatility in financial markets, inflation concerns, and global uncertainty—particularly the impact of international tariffs—caused some buyers to step back.

Sales Steady Despite Buyer Caution

Although inventory expanded in April, overall sales activity held steady. A total of 457 homes closed across the East Bay—just 1% fewer than the same period last year. While buyer hesitancy is often tied to stock market swings (which affect down payment liquidity), most buyers I worked with remained active and engaged, particularly for well-located homes.

That said, performance varied depending on geography. In the Inner East Bay—closed sales declined just 1% year-over-year, underscoring continued demand for proximity to job centers and lifestyle amenities. By contrast, the Outer East Bay—saw a 6% drop in sales volume.

In terms of pricing, the Inner East Bay posted a 6% year-over-year increase, while the Outer East Bay saw values rise by 9%. However, the dynamics differed: homes in the Outer East Bay generally sold at asking, while Inner East Bay properties averaged 20% over list price.

Buyers Stay Active Despite Headwinds

Despite persistent economic headwinds, buyer demand remains resilient. Well-priced homes—particularly those with desirable layouts, location, and proximity to amenities and strong schools—are still selling quickly, often within 9 to 14 days on the market.

Notably, I’m seeing a shift in buyer psychology: more clients are expressing openness to homes that need cosmetic updating. This suggests a willingness to trade turnkey finishes for value, especially in light of elevated interest rates.

Summer Outlook: What to Expect

The next few weeks will mark the tail end of the spring market before we enter the slower pace of summer. Continued market fluctuations are possible, but the latter half of April and early May showed signs of stabilization which could boost buyer confidence in the near term.

Longer-term, East Bay fundamentals seem solid. Demand continues to outpace supply—especially in areas with strong access to employment corridors and community amenities. While buyer psychology remains sensitive to headlines, the underlying need for housing remains a stabilizing force. Barring any major shocks, this foundation should help support market activity as we move into summer.

-Alex