July 2025 Market Update

🏡 Mid-Summer Market Update: What We're Seeing in the Tri-Valley

As we move through the heart of summer, the local real estate market has entered a seasonal slowdown. Showings are down, homes are taking a bit longer to sell, and price adjustments are becoming more common. This mid-summer pause is typical for the Tri-Valley, as buyers often shift focus to travel and other commitments.

After peaking in June, inventory levels have started to taper off in most Tri-Valley communities, with the exception of Danville and Alamo, where available listings have seen slight upticks this month. At the same time, the average days on market has increased by about five days, signaling that homes are taking longer to go into contract compared to earlier this year.

We expect these patterns to persist through August and into early September, which historically brings a renewed wave of buyer interest and a tightening of available homes.

On the financing front, interest rates have remained relatively steady, with little movement in either direction. The Federal Reserve is widely expected to announce a rate cut at its upcoming meeting. However, it’s important to note that a lower federal funds rate doesn’t always lead to lower mortgage rates. In fact, after the Fed reduced rates by a full percentage point in late 2024, mortgage rates rose by more than 1%, highlighting the influence of broader economic factors like inflation expectations and bond market activity.

Looking ahead, forecasts for mortgage rates are mixed. Fannie Mae projects rates could drift down to around 6.3%, while economists at Wells Fargo anticipate they may remain closer to 6.9%. Most experts expect rates to hover in the 6.5 – 6.75% range for the rest of 2025, with the potential for gradual easing starting in early 2026.

At Elation Real Estate, we're closely watching these shifts so we can help our clients navigate the market with clarity and confidence. If you're considering buying or selling, now is a great time to prepare for the more active fall season.