The Bay Area real estate market in 2025 was anything but static. The year began with strong buyer demand, only to be disrupted by heightened political and economic uncertainty in early spring. That uncertainty cooled momentum across many markets. Later in the year, however, stock markets rebounded to new highs and interest rates began a sustained decline, setting off a gradual but meaningful shift in buyer and seller psychology that is still unfolding.
One of the defining themes of 2025 was the growing divide between more and less affluent households. Consumer confidence data reflected this clearly, and it showed up in real estate performance as well. Higher-end, affluent markets, where buyers benefited directly from stock market gains, generally performed better than more affordable markets, which were more sensitive to inflation, affordability, and employment concerns. Lamorinda, as a highly affluent market, remained relatively resilient throughout these shifts.
Much of this report focuses on annual statistics, which naturally compress a year marked by rapidly changing conditions. Looking at the big picture, 2025 was slightly cooler than 2024 across most standard indicators, with median home sales prices remaining essentially flat year over year.
As we begin 2026, the landscape looks more encouraging. Interest rates are near multi-year lows, and stock markets are at or close to all-time highs. Historically, the early months of the year bring renewed energy, as buyers re-engage and move forward with major life decisions, often faster than sellers bring new inventory to market. This imbalance between rising demand and limited supply typically fuels the spring selling season, making it the most competitive time of year.
Last year, that pattern was disrupted by unexpected economic shocks. Barring new surprises, the conditions now in place point toward a stronger, more active spring market ahead.
As always, preparation, education, and timing remain critical. Whether you’re considering a move this spring or simply want to understand how current trends may affect your plans, I’m here to help you navigate the market with clarity and confidence.
If you’d like to talk through what 2026 could look like for you, let’s connect and put a thoughtful strategy in place..
Here’s to a well-prepared start to the new year.
View The Full January 2026 Lamorinda Real Estate Report
View The Macroeconomic Factors & Indicators Pertinent to Bay Area Real Estate
View The East Bay Median Home Price Map – Alameda & Contra Costa Counties
