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

By Gina Piper | Published December 15, 2025

Key Takeaways

• Mortgage rates: Dropped to ~6.25%, down from near 7% at the start of 2025

• Market activity: Seasonal slowdown with low inventory and longer marketing times

• Days on Market: Increased significantly, reflecting buyer caution and limited listings

• Planning for 2026: Early preparation is recommended for sellers, especially for homes needing updates

• Market outlook: Falling rates and softening inflation could spur activity in early 2026

Tri-Valley Mortgage Rates and Financing

Current Rate Environment

• Average mortgage rates are approximately 6.25%, down 0.75% from January 2025

• Rates are expected to continue easing in 2026, potentially reaching the mid-5% range if inflation remains tame and economic conditions soften

• Lower rates could incentivize buyers to return to the market and motivate sellers who previously delayed listing

What This Means for Buyers

• Buyers may find improved affordability compared to early 2025

• Lower rates could increase competition as more buyers move off the sidelines

• Timing is favorable for those ready to act in the first quarter of 2026

Strategic Considerations

Buyer and Seller Activity

What We’re Seeing on the Ground

• Market activity is naturally slower for the holidays, with low inventory and longer days on market

• Buyers remain selective and cautious, reflecting typical end-of-year patterns

• Sellers with turnkey, well-priced homes are better positioned for quick sales when the market picks up in February–March

Seller Strategy

• Focus on updates, staging, and curb appeal now to prepare for early spring listings

• Homes that are move-in ready will attract attention faster than those requiring work

• Price competitively to take advantage of motivated buyers when inventory is low

Frequently Asked Questions

Is now a good time to sell at year-end?
Yes. While overall activity is slower, careful preparation now can position sellers for early 2026 success. Turnkey, updated homes typically sell faster once the spring market begins.

Are mortgage rates likely to drop further in 2026?
Many analysts predict mid-5% rates are possible based on current inflation trends and economic forecasts. Falling rates would likely bring more buyers back to the market.

How long are homes staying on the market?
The average days on market have increased significantly due to seasonal slowdown and limited listings. Properly staged and competitively priced homes still sell faster.

Should buyers wait for spring, or act now?
Waiting could allow more inventory, but current rates are lower than early 2025, offering potential savings. Buyers prepared to move quickly may benefit from early deals.

Local Market Expert Summary