Spring Comes Early

The housing market across the San Francisco Bay Area gained momentum in February, and here in the East Bay I’m seeing signs that the spring selling season started earlier than usual. Buyer demand has strengthened as the year begins, more homeowners are listing their properties, and activity in higher price ranges is helping drive overall sales upward.

Communities like Berkeley, Oakland, Lafayette, and Walnut Creek are already seeing increased activity as buyers begin moving ahead of the traditional spring market. With economic uncertainty still making headlines, many clients have been asking me whether the East Bay housing market is slowing down or heating up in 2026. February’s MLS data highlight strong demand.... will it last?

Economic Stability Continues to Support Buyers

Part of this strength reflects the continued stability of the Bay Area economy. Employment across the region has grown modestly over the past year, while the unemployment rate has tightened slightly to around 4.5%. At the same time, mortgage rates have eased somewhat compared with recent highs, which has encouraged some buyers who paused their search last year to begin looking again. 

When I talk with buyers, another common question quickly comes up: are more homes finally becoming available?

Inventory Is Increasing Across the East Bay

In February, the answer was clearly yes. Across the Bay Area, active listings climbed to roughly 5,300 homes, about a 15 percent increase from January. Alameda and Contra Costa counties both saw notable gains, and the East Bay now represents nearly one-third of all homes currently on the market in the region.

For buyers who struggled with extremely limited options in recent years, this increase in inventory is meaningful. It creates more opportunities while also reflecting growing confidence among homeowners who see that strong demand is still present.

Sales Activity Is Picking Up

As more homes come onto the market, many people wonder whether buyers are actually moving forward with purchases or continuing to wait. February’s numbers suggest buyers are moving.

Nearly 2,500 homes closed across the Bay Area during the month, a 43% increase from January. While sales usually begin rising as the spring season approaches, this jump was larger than typical historical patterns.

The East Bay reflected that surge in activity. In Berkeley, for example, 30 homes sold in February, an increase of more than 30 percent compared with the same time last year. In Oakland, 125 homes changed hands, while communities such as Lafayette and Walnut Creek also saw strong increases in sales activity.

Competition Remains Strong for Desirable Homes

One of the questions I hear most often from both buyers and sellers is whether homes are still selling above the asking price. In many cases, the answer is yes—for desirable homes, in prime locations.

]Some East Bay communities remain especially competitive. Homes in Albany and El Cerrito frequently sold well above their initial list price, reflecting strong demand for homes close to transportation, employment centers, and vibrant neighborhood amenities.

Home Prices Across the East Bay

Many clients are also asking how home prices are trending this year. While prices vary widely by neighborhood, overall values remain relatively strong.

The median sales price across the Bay Area reached about $1.3 million in February. Within the East Bay, the median price in Berkeley was about $1.47 million, while homes in Oakland had a median price around $815,000. Nearby Piedmont remains one of the most expensive markets in the region, with a median price close to $2.45 million.

Further east, communities such as Lafayette and Orinda continue to see median prices above $2 million.

Luxury Sales Are Accelerating

Another trend that stood out in February was the surge in luxury home sales. Across the Bay Area, the number of homes selling for more than $2.5 million nearly doubled compared with January, marking the strongest February performance in this category on record.

Nearly 100 homes sold for more than $5 million during the month. While much of this activity occurred in San Francisco and Silicon Valley, the East Bay also saw increased luxury demand in communities such as Piedmont, Orinda, and Danville.

Looking Ahead to the Spring Market

As we head into the spring season, many buyers and sellers are asking what the rest of 2026 might bring for the East Bay housing market. From my perspective, the strong February data suggests we could see one of the most active spring markets in several years.

Lower mortgage rates and increasing inventory are encouraging buyer activity, while continued job growth and the expansion of industries like artificial intelligence continue to support the regional economy.

Ongoing geopolitical tensions, including the war in Iraq, continue to contribute to economic uncertainty. While these events will cause some buyers to pause or take a more cautious approach in the near term, the underlying fundamentals of the East Bay housing market are still intact. From what I’m seeing locally, demand for homes across communities like Berkeley and Oakland continues to be resilient as we move further into the spring market.

-Alex