March Market Update for Pleasanton and the East Bay

Pleasanton & Tri-Valley Real Estate Market Update – Late Winter 2025

By Gina Piper | Updated March 2025

Key Takeaways

• Seasonality: The spring market has effectively started early

• Inventory levels: Already at or near typical May levels in many cities

• Buyer demand: Strong, supported by a recent drop in mortgage rates

• Days on market: Averaging 32 days across the Tri-Valley

• Market balance: More inventory is reducing extreme bidding competition, but multiple offers remain common

A “Late Winter” Selling Season

Inventory is the primary story this month. The traditional spring selling season appears to have arrived early, effectively creating a late-winter selling season.

In most Tri-Valley cities, the number of homes currently on the market has already reached levels that are normally seen in May. This early wave of listings has expanded buyer options and relieved some of the pressure created by the severe inventory shortages of the past two years.

Current Inventory Levels

Active Listings vs. Earlier This Winter

The increase in supply has been meaningful for buyers, but inventory is still not excessive by historical standards. Instead, it is better characterized as a normalization toward a healthier housing market.

Buyer Demand Remains Strong

Buyer activity has stayed strong and received an additional boost when mortgage rates briefly dropped to their lowest level since December. That drop led to roughly a 20% increase in mortgage applications, indicating renewed buyer engagement.

The added inventory has provided buyers:

• More homes to choose from

• Greater ability to compare properties

• Slightly less pressure in negotiations

However, demand remains strong enough that well-priced homes continue to attract significant interest.

Days on Market and Offer Activity

The average time on market across the Tri-Valley is approximately 32 days, meaning homes are still selling relatively quickly.

Multiple offers remain common, but the market dynamics have shifted slightly:

• Many homes still receive competing offers

• Typical offers per property are now two to three offers

• Previously, highly desirable homes often received four to five offers

This suggests the market is moving toward a more balanced supply-and-demand environment, rather than a buyer’s or seller’s extreme.

Interest Rates and Economic Outlook

The broader housing market remains influenced by economic uncertainty and financial market volatility. Some economic indicators, including an inverted yield curve, have historically been associated with potential economic slowdowns.

In the near term, mortgage rates are likely to remain volatile. Over time, rates may gradually decline once financial markets stabilize, though the timing remains uncertain.

What This Means for Sellers

• More competition from other listings than in prior years

• Proper pricing and presentation are becoming increasingly important

• Well-prepared homes are still attracting multiple offers

• The earlier listing window may help sellers stand out before peak spring inventory

What This Means for Buyers

• More choices than in the past two years

• Slightly reduced bidding pressure

• Continued competition for highly desirable homes

• Opportunities to negotiate in certain situations that previously did not exist

Market Outlook

I expect 2025 to be significantly more active than the past two years. Many buyers and sellers who were waiting for substantially lower interest rates appear to have accepted that large rate drops may not occur in the near future. As a result, they are moving forward with real estate plans rather than waiting.

Overall, the Tri-Valley housing market is transitioning from an extremely tight environment toward a healthier and more balanced one — but it remains an active market with strong demand.

Elation Real Estate is here to help whether you are purchasing your first home, moving up, downsizing, or considering an investment property.
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