March Market Update

Inventory levels are at the forefront of this month’s update, as this year’s “Spring Selling Season” has come early as a “Late Winter Selling Season.” Inventory levels in most Tri-Valley cities have already reached levels typically seen in May of previous years.

Here's a glimpse of current inventory levels compared to February:

This early surge in new listings has been a welcome change for buyers, providing them with more homes to choose from and alleviating some of the stress of competing with multiple buyers for a limited number of properties. Buyer activity has remained strong and received a boost last week when mortgage rates dipped to their lowest levels since December, resulting in a 20% increase in mortgage applications.

With an average of 32 days on the market in the Tri-Valley, homes are still selling relatively quickly. However, increased inventory levels have created a more balanced dynamic between supply and demand. Many homes are still receiving multiple offers, but the number of offers per property has generally decreased to two or three, compared to the four or five that were common for highly desirable listings.

Looking ahead, the market remains uncertain due to ongoing volatility and various unknowns as it reacts to the new administration’s actions. Several economic indicators suggest potential economic weakness, including an inverted yield curve—a historical precursor to recessions. I anticipate continued rate volatility in the near term, followed by a gradual decline once the market stabilizes.

From a real estate perspective, I expect 2025 to be much busier than the past two years. It seems that many buyers and sellers who had been waiting for significantly lower interest rates have come to terms with the reality that substantial rate drops are unlikely in the near future. As a result, they are re-entering the market, whether to buy or sell a home.

Elation Real Estate is here to assist you with any of your real estate needs, whether your buying your first home, moving up, downsizing, or purchasing an investment property.  Contact us to schedule a confidential, no pressure consultation.