Pleasanton & Tri-Valley Real Estate Market Update – August 2025

By Gina Piper | Published August 15, 2025

Key Takeaways

• Mortgage rates: Dropped to the lowest level in 10 months, but buyer activity remains cautious

• Inventory levels: Slight declines across all Tri-Valley cities; Livermore saw the largest decrease (-24 homes)

• Buyer activity: Still subdued despite improving rates; showing traffic and offers remain sluggish for many properties

• Market trend: Average days on market increased ~3 days across the board

• Seasonal outlook: Activity likely to pick up in mid-to-late September as families settle into school routines

Mortgage Rates and Financing

Current Rate Environment

• Mortgage rates dropped to a 10-month low this week

• Despite the rate improvement, buyer activity has not increased significantly

• Fed rate cuts don’t always result in lower mortgage rates; past Fed cuts (e.g., late 2024) were followed by rising rates due to broader economic factors

Rate Forecasts for the Remainder of 2025

• Analysts predict mortgage rates will likely remain in the mid-6% range through the fall

• Potential for gradual easing beginning in early 2026, but timing depends on economic conditions, inflation expectations, and Treasury market activity

What This Means for Buyers

Tri-Valley Inventory Levels

Current Active Listings (August 15, 2025)

Historical Context

• Declines are mostly due to fewer new listings, not a surge in pending sales

• Average days on market increased ~3 days, signaling continued cautious buyer behavior

• Mid-to-late September typically brings a seasonal uptick in activity as families return from vacations and settle into school routines

Buyer Activity

What We’re Seeing on the Ground

• Showing traffic and offers remain sluggish across all price ranges

• Buyers are evaluating options carefully despite the recent drop in rates

• Seasonal trends suggest a modest activity rebound in September, with potential for quicker sales and multiple offers if rates remain favorable

Seller Conditions

Strategic Considerations for Sellers

• Patience is key: mid-August is a slower market; well-priced homes continue to attract interest but overpricing can lead to longer days on market

• Monitor market activity closely and prepare for late-September surge

• Adjust marketing strategies to maintain visibility as buyers return

Frequently Asked Questions

Is August a good time to sell in the Tri-Valley?
Yes, but sellers should price carefully and expect longer days on market. Well-priced homes will still attract buyers, but activity is slower than spring.

Have mortgage rates improved?
Yes, rates dropped to a 10-month low, but this has not yet significantly increased buyer activity.

Why is inventory declining in August?
Fewer new listings are coming to market, not because homes are selling faster. Buyers have fewer fresh options to choose from.

When will buyer activity pick up?
Typically mid-to-late September, when families settle into school routines. Market response will depend on mortgage rate trends and overall economic conditions.

How long are homes staying on the market?
Average days on market increased ~3 days compared to July, currently averaging around 48–50 days across the Tri-Valley.

Local Market Expert Summary