Resilience, Rising Prices, and What’s Ahead

Even with ongoing economic uncertainty, the East Bay housing market continues to show impressive resilience. Buyer demand remains strong—especially for homes in well-located neighborhoods near job centers and transit. While spring didn’t bring the same heat as past peak seasons, momentum picked up in June, with sales volume jumping 16% year over year. May was slower, likely due to stock market turbulence and broader financial caution, but the recovery was swift.

Inventory rose through spring and began leveling out by early summer. Unlike other major metros where for-sale supply doubled or tripled, the East Bay experienced a more moderate increase—pointing toward a stabilizing market rather than a surplus of unsold homes.

Prices held firm and even pushed higher. The regional median home price reached $1.67M, a 3.7% gain from last year. Inner East Bay communities led the way with a 12% increase, while prices in the Outer East Bay declined by 6.5%. The value premium for proximity to work, schools, and lifestyle amenities remains clear.

Buyer competition also stayed strong. In the Inner East Bay, homes sold on average for 17% over asking, with Berkeley, Albany, and Piedmont seeing the fastest-paced sales and most aggressive bidding. In the Outer East Bay, fewer homes sold above list, but those that did commanded an average 10% premium. Across the region, homes spent an average of just 27 days on the market—only slightly longer than a year ago.

Looking ahead: A recovering stock market and resilient local economy may encourage more move-up buyers to re-enter the market, especially if mortgage rates begin to ease. Federal immigration policy could impact international migration trends, but local fundamentals remain strong. With solid demand and a more balanced inventory picture, the East Bay market is well positioned for a strong finish to the summer.

-Alex