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Are Bay Area Home Prices Dropping?


If you've been wondering whether now is a good time to buy a home in the San Francisco East Bay, you're not alone. Many potential buyers are asking, "Are Bay Area home prices dropping?" The good news is: yes, they are — and it might be one of the best opportunities we've seen in years for buyers to make their move.


As a trusted Realtor serving Concord, Pleasant Hill, Walnut Creek, and Martinez, I'm here to give you real, current market insights. Let's break down why 2025 is shaping up to be a prime year to start your home search and find your East Bay dream home.



Data doesn't lie. As of April 17, 2025, the average home price in the East Bay is down about 4% compared to last year. After years of soaring prices, we're finally seeing a market where buyers have more power.


Take a look at the first chart: it shows the average price of homes as of April 17 each year since 2017. Notice how 2025 prices have softened, creating more opportunities for buyers to get in at a lower cost.


Figure 1
Figure 1


In the second chart, which tracks monthly average home prices over the last five years, you’ll again see that 2025 prices are noticeably lower than in previous years. If you've been on the fence, waiting for a "deal," this is exactly what you've been waiting for.


Figure 2
Figure 2


Not only are prices lower, but inventory is at a 5-year high. The third chart shows that there are significantly more homes for sale now compared to any point over the last five years.



Figure 3
Figure 3


What does this mean for you as a buyer?

  • More choices: You're not stuck with the few leftovers.

  • Less competition: No more extreme bidding wars.

  • More negotiating power: Sellers are more motivated to work with buyers.


In Concord, Pleasant Hill, Walnut Creek, and Martinez, buyers are finally able to take their time, explore different homes, and find the one that's truly right for them, without feeling rushed or pressured.



Now, let's talk about mortgage rates. Our final chart shows the weekly average for 30-year fixed-rate mortgages. Rates had been trending downward through much of 2025 until this past week, when we saw a slight uptick.



Figure 4
Figure 4


Here’s the key: Higher rates are helping keep home prices low. As rates eventually fall again (which many experts predict), home values are expected to rise. Buyers who purchase now can refinance later at a lower rate — and in the meantime, they'll be building equity as home prices climb.


Buy low, refinance low — it's a winning strategy.

Why You Should Start Your Home Search Now

There’s a perfect storm of opportunity happening in the East Bay real estate market:

  • Lower prices: About 4% down compared to 2024.

  • Higher inventory: More homes and less competition.

  • Rates expected to drop again: Future rate drops will boost home prices.


If you wait, you could find yourself facing rising home prices and tighter competition again.


Now is the time to start your search — before everyone else realizes what a great opportunity this is!


In Summary: Are Bay Area home prices dropping? Absolutely. With lower prices, higher inventory, and future falling mortgage rates on the horizon, 2025 is shaping up to be a fantastic year for East Bay homebuyers. Don't miss your chance to take advantage of today's market conditions — your dream home is waiting!






Ready to Find Your East Bay Dream Home?

Start browsing today at my easy-to-use home search site: https://ronmelvin.kw.com/

You’ll find real-time listings for homes in Concord, Pleasant Hill, Walnut Creek, Martinez, and throughout the San Francisco East Bay.


Have questions or want to talk about your homeownership goals?

Call me directly at 925-708-1178. I'm always happy to help you navigate the East Bay market and find the perfect place to call home.






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