First Quarter 2025 Wrap-up

Apr 11

Hi All,

We know it's been a crazy week in the markets and in the world and we hope you're able to navigate it with equanimity.

We don't want to make light of the news, or suggest that the next few months will look the same as the last few months, but we did want to share this quarterly report that shows how 2025 has been so far in our robust real estate market. The upshot is that it's still been quite strong and very dynamic.

This has certainly been our experience with our clients so far this spring; both with our listings and with our Buyer clients. The competition has been fierce and sale prices have been, in many cases, quite high. There are always opportunities of course and we strive to help our clients be successful by being strategic and thoughtful in our advice.

As you read, please note that the data below is tracking relatively small markets. If you'd like for us to talk to you about what your home may be worth, and when would be a good time to market it, please reach out.

Cheers,
Maria, Corey, Anita, and Carla

The Inner East Bay real estate market continued its steady pace in the first quarter of 2025 with strong buyer demand and healthy sales activity—particularly with single-family homes. Single-family home sales jumped 14.5% year-over-year, while condo sales dipped 9.2%, reflecting shifting demand dynamics.

Prices for single-family homes also saw healthy gains. The median sales price rose 2.1%, while the median price per square foot increased 2.0%—a sign of underlying strength in buyer confidence and market fundamentals.

The luxury segment saw notable growth, especially for properties priced above $2 million, which recorded an 11% increase in sales year over year.

Inventory has expanded a lot compared to last year, offering buyers more choices. Active inventory for single-family homes is up 52.8% year over year, while condo inventory has increased 30.9%. The Months' Supply of Inventory (MSI) now stands at 2.2 for single-family homes, still definitively a seller’s market. For condominiums, MSI has climbed to 6.5, squarely in buyer's market territory.

Despite the rise in inventory, single-family homes have continued to sell quickly, with the median days on market holding steady at just 14 days—an exceptionably low figure that has remained consistent since Q1 2023 and underscores the competitiveness of our particular market.

Meanwhile, mortgage rates have been providing additional tailwinds. Following the announcement of new tariffs last week, amidst the stock market volatility, rates dropped, but they have been increasing again since then.

With buyer demand holding strong, prices ticking upward, and inventory levels improving, the Inner East Bay appears to be poised for an active and competitive spring season.