The Market: Update for April 1, 2025

April 2025 Market Insight

The economic landscape remains complex, with global tariff tensions and cautious corporate hiring creating some uncertainty across financial markets. Still, the recent dip in mortgage rates has opened a window of opportunity—bringing new energy into the East Bay real estate scene.

Inventory has reached a seasonal high, giving buyers more choice and sellers more freedom to explore relocation options, especially those looking to leverage strong equity positions. The inventory for turn key homes remains low increasing demand in prime markets.

We’re also seeing increased interest in adjustable-rate mortgages (3, 5, and 7-year ARMs) as savvy buyers look for flexibility and lower monthly payments in the short term.

While some buyers and sellers are hitting pause, others are leaning in—and securing great deals as competition softens. If you’re considering a move, now may be the time to explore your options while the market adjusts.

Let’s connect if you’re curious about how today’s shifts could work in your favor.

Alameda County

Contra Costa County

Appraisal Update - Spring 2025 – What Buyers Should Know

In today’s shifting market, low appraisals are becoming more common, especially when financed offers come in above recent comparable sales. Even if the contract price seems reasonable, an appraisal can come in under value—sometimes by a significant amount.

A colleague recently had an appraisal come in $200,000 below contract despite strong comps and clear errors in the report. They filed a formal rebuttal, but the appraisal wasn’t revised. Fortunately, the buyer had enough cash on hand to cover the gap.

Appraisals can vary for many reasons—such as:

• An appraiser unfamiliar with local neighborhoods and school boundaries

• Random assignment of appraisers by the lender’s panel

• Subjective interpretation of condition, upgrades, or market momentum

While agents can sometimes request a reconsideration or even a new appraiser if assigned early, there are strict guidelines preventing direct influence on the process. Having a local appraiser helps, but it’s not a guarantee.

This is exactly why the appraisal contingency exists—to protect buyers from having to move forward without support if the valuation comes in low.

If you’re buying in this market, it’s important to prepare for this possibility. Let’s talk about how to structure your offer and build in flexibility.

Home Insurance Update – April 2025

Home insurance in California continues to be a major challenge for buyers and homeowners alike. Due to the ongoing risk of wildfires, severe weather events, and older home features like knob-and-tube wiring, many major insurance companies—such as Farmers and Allstate—have either pulled back or capped the number of new policies they’ll issue each month. Rising construction costs and inflation have also contributed to the tightening of coverage.

In some cases, the state’s FAIR plan has become the only available option, but it often comes with limited coverage and annual premiums that can exceed $8,000. Additionally, FAIR does not cover theft or liability—meaning buyers must secure supplemental policies to be adequately protected.

What we’re doing now:

To stay ahead of the curve, we’re proactively reaching out to multiple insurance providers on our clients’ behalf—sometimes even before writing an offer. Quick conversations or soft quotes from a few reputable agents can help clarify coverage options and pricing expectations early in the process.

This approach is especially important in competitive offer environments, where removing contingencies is key to winning the home. Lenders still require proof of acceptable coverage before closing, so securing that coverage early helps avoid last-minute surprises.

If you’re planning to buy this year, let’s talk about what to expect—and how to be prepared.

Inner East Bay Market Trends

🏡 Inner East Bay Real Estate Market, March 2025 Snapshot

As we head into the spring market, activity across the Inner East Bay continues to reflect strong buyer interest, low inventory, and evolving seller strategies. Here's what you need to know:

Inventory Remains Tight

• The number of active listings is still significantly below pre-pandemic norms.

• Fewer new listings means competition remains high for well-priced homes, especially under $1.5M.

Home Prices Stay Competitive

• Median home prices have held steady or increased slightly in many East Bay neighborhoods.

• Buyers remain active, especially in Oakland, Berkeley, and Piedmont, driving multiple offers for turnkey homes.

Days on Market Are Dropping

• Homes are selling faster as spring demand ramps up.

• Well-prepared listings are going into contract in under two weeks in some areas.

What This Means for Sellers

• This is a strong window to list if your home is ready.

• Low supply continues to benefit sellers who price strategically and prep their homes well.

What This Means for Buyers

• Be prepared: get pre-approved, review disclosures quickly, and be ready to move fast on desirable homes.

• Consider homes that may need a bit of cosmetic work — there may be more flexibility on price.

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