Tri-Valley Market Update - February 2025

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

By Gina Piper | Updated February 2025

Key Takeaways

• Market timing: Activity is accelerating much earlier than a typical year

• Inventory levels: Significantly higher than February 2024 in most Tri-Valley cities

• Buyer demand: Increasing, with multiple offers returning

• Luxury market: $2M+ homes also receiving strong interest and going pending quickly

• Market outlook: Early indicators point to a very active 2025 housing market

An Early Start to the Spring Market

Market activity is picking up considerably earlier than in past years. Current inventory levels now resemble what we typically see during the spring selling season rather than February.

In several Tri-Valley cities, available homes have more than doubled compared to the same time last year, signaling that sellers are bringing homes to market sooner and buyers are actively preparing for the season.

Current Inventory Levels

Active Listings vs. February 2024

Although inventory has increased significantly year-over-year, it is important to note that supply still remains limited relative to long-term historical norms. The increase is best interpreted as an earlier seasonal shift, not an oversupplied market.

Buyer Demand Is Increasing

Buyer activity has risen noticeably over the past several weeks.

I’ve observed:

• Several homes selling quickly

• Multiple-offer situations returning

• Shorter time on market for well-priced properties

While much of this activity has occurred in the entry and mid-price ranges, the luxury market is also showing strength. I have seen multiple homes priced above $2 million go pending within two weeks after receiving multiple offers — something we typically do not see this early in the year.

This indicates demand is broad-based and not limited to first-time buyers.

What’s Driving the Market

Two primary factors appear to be fueling the early activity:

1. Interest Rate Expectations

Many buyers appear to be adjusting to the likelihood that mortgage rates may not drop as quickly — or as much — as previously expected. Rather than waiting indefinitely, buyers are choosing to move forward with purchases now.

2. Consumer Confidence

There is also a noticeable increase in optimism about the economy and personal financial outlooks. As confidence improves, more buyers who paused their plans over the past two years are re-entering the market.

The current surge is likely the result of both factors working together.

What This Means for Sellers

• More buyers are actively shopping now than is typical for early in the year

• Listing early may allow sellers to capture attention before peak spring competition

• Well-prepared homes are attracting strong interest and, in some cases, multiple offers

• The early market window may offer favorable pricing conditions

What This Means for Buyers

• Inventory is improving compared to last year, providing more choices

• Competition is returning, especially for desirable homes

• Waiting for significantly lower rates may mean competing against more buyers later

• Acting decisively on well-priced properties is becoming increasingly important

Market Outlook

All signs suggest the 2025 real estate market is beginning sooner than normal. Inventory is rising earlier, buyers are re-engaging, and multiple-offer situations are already appearing across several price ranges — including luxury homes.

While future interest rate movements remain uncertain, current conditions point toward a very active year for Pleasanton and Tri-Valley real estate.