Tri-Valley Real Estate Market Update May 2025: Inventory Surges in Pleasanton, Danville, San Ramon, Dublin and Livermore

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

By Gina Piper | Updated May 2025

Summary:
The May 2025 Tri-Valley housing market is shifting toward a more balanced market. Inventory has risen sharply across Pleasanton, Danville, San Ramon, Dublin, Livermore and Alamo, marketing times are increasing, and buyer demand is beginning to rebound. Mortgage rates remain volatile in the high-6% range and will likely determine how active the summer housing market becomes.

Key Takeaways

• Inventory levels: Rising to the highest levels seen in several years

• Days on market: Increasing gradually across all cities

• Buyer demand: Rebounding after slowing in early April

• Luxury market: Showing renewed activity, including Ruby Hill

• Interest rates: Volatile and hovering in the high-6% range

• Market outlook: Potential for a stronger than normal summer market if financial markets stabilize

Inventory Expands Across the Tri-Valley

As we move through the spring selling season, inventory continues to grow rapidly across the Tri-Valley. The sharp rise that began in April carried into May, with some cities experiencing substantial increases in available homes.

Active Listings (May 2025)

Livermore saw the largest increase, adding 52 homes in one month.

Local indicators also point to additional listings ahead. Inspectors, stagers, and other vendors are reporting unusually high activity levels, and I continue to receive calls from homeowners considering selling. This suggests inventory will likely keep growing in the near term.

Marketing Times Increasing

With more homes available, marketing times are beginning to extend. The average days on market has risen modestly across all Tri-Valley cities.

Homes are still selling, but buyers now have the opportunity to compare options rather than immediately competing for the limited supply that existed earlier in the year.

Buyer Demand Showing Signs of Recovery

Buyer activity slowed somewhat after the early-April financial market volatility but is now beginning to rebound.

Recent observations include:

• Increased showing activity across price ranges

• Multiple offers on select listings

• Renewed interest in higher-end properties

I have seen strong early traffic at a new listing in Ruby Hill, and multiple offers on another recent listing. Demand appears to be returning not only at entry and mid-price points, but also in the luxury segment.

This improving demand may be connected to equity markets stabilizing after the sell-off earlier in April.

Interest Rates and Economic Factors

Mortgage rates remain highly volatile and are currently in the high 6% range. Financial markets are watching Federal Reserve communications closely for guidance on future rate direction.

Short-term expectations:

• Continued rate fluctuations

• Sensitivity to Federal Reserve commentary

• Potential for meaningful rate movement following policy guidance

Because mortgage rates strongly influence buyer confidence and affordability, even small changes may significantly affect housing activity.

What This Means for Sellers

• More competition from other listings than earlier in the year

• Proper pricing and preparation are increasingly important

• Well-presented homes are still attracting strong interest

• Sellers may benefit from listing before additional summer inventory arrives

What This Means for Buyers

• More available homes and greater choice

• Reduced pressure compared to the early-year market

• Opportunity to negotiate in some situations

• Mortgage rate changes may significantly affect affordability

Market Outlook

Financial markets remain sensitive to trade and economic developments, which may influence mortgage rates and buyer confidence. If economic conditions stabilize and financial markets improve, additional buyers may re-enter the housing market.

Should that occur, the Tri-Valley could experience a busier than typical summer real estate season despite the higher inventory levels.

Overall, the housing market is transitioning from the tight conditions of early 2025 toward a more balanced environment, with increasing inventory and gradually strengthening buyer activity.