The national housing market showed promising growth in August from July, while the East Bay real estate market continues to move at a pace that reflects both opportunity and caution.
According to the National Association of REALTORS® (NAR), pending home sales nationwide increased 4.0% month-over-month and 3.8% year-over-year in August 2025. The West region, which includes California, saw a 5.0% increase in pending sales from the prior month and a modest 0.2% increase compared to August 2024.
"Lower mortgage rates are creating opportunities for buyers across the country," said NAR Chief Economist Lawrence Yun in the national report. "We're seeing increased contract activity as affordability improves."
The East Bay housing market in August showed characteristics similar to the broader West region trend, with nearly 200 more pending sales compared to last year. However, the local market is experiencing shifts that vary considerably by community and price point.
"We're in a fascinating transitional period for East Bay real estate," said Tracey Esling, 2025 President of the Bay East Association of REALTORS®. "The market is evolving in ways we haven't seen in recent years, and it will be interesting to watch how external factors like tariffs, the job market, stock market fluctuations, and potential government shutdowns shape buyer and seller behavior in the coming months."
Across the East Bay, inventory levels increased significantly in August, with more than 500 additional homes on the market compared to last year. This increase in available homes was seen in nearly every community, from the 880 Corridor through Central and West Contra Costa County to the Delta communities.
Price trends varied widely by location and price point. While some communities saw double-digit percentage declines, others experienced increases of 40% or more. Overall, East Bay prices were down for the third consecutive month but remained higher than August 2024 levels.
Sales activity decreased for the second month in a row and was generally down compared to last year, though there were notable exceptions. Homes stayed on the market an average of 30 days, indicating steady but measured buyer interest.
The Tri-Valley region exemplified many of the market-wide trends, with significant increases in available inventory across nearly all communities and pricing remaining relatively strong. Most communities showing gains of 2-5% compared to last year.
"What makes this market so intriguing is the number of variables at play," Esling said. "Mortgage rates are still higher than during the pandemic, and there are also broader economic uncertainties that may be causing both buyers and sellers to be more cautious. At the same time, the nearly 200 additional pending sales compared to last August tells us there's definitely activity happening. Buyers are out there, but they're taking their time to make informed decisions."
Esling added the ever-evolving Bay Area market truly gives people in the region plenty of opportunities on both sides of the transaction so long as they have the right information they need to make the best possible decision for their circumstance.
