Historic Trends

Market Update
Author

Kyle Paquin

Published

February 8, 2025

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As we shake off the confetti and step into a brand-new year, it’s time to take a beat and get some perspective. What’s the big headline that isn’t really news?

Homes are unaffordable.

Well… sort of. Let’s break it down.

For the past 45 years (1980–2022), interest rates have been on a downward trend, making it easier, year after year, to buy a more expensive home with the same monthly payment. That’s been the norm for three generations. However, home prices climbed right alongside, and in just the last six years alone, they’ve surged 20-40%.

So now, after a three-year streak where affordability has backpedaled for the first time in decades—and home prices have outpaced wage growth by a mile—many typical buyers are finding the math unworkable.

But wait, that’s not the whole story.

If you bought a home anytime in the last 20 years. Your situation is different. Not only is your payment low, but your home’s value has almost certainly jumped 20-40% (or more). My advice- find the sellers who are looking to move on. Not everyone loves their home and its your job to help them find someone who does.

Mortgage and Me

This section is the summary of the ongoing sitcom, “Mortgage and Me”, where you get news of what the banks are doing and how it affects us all.

Mortgage Rates: Rolling Around

Rates are up, rates are down. Who knows when we will be done with this round?

Refinance Volume: Consistent

After the holidays and a new year with rates about the same. Refi’s are tracking exactly where they were in late October/November.

East Bay Area Market Update

East Bay Area January Yearly Trends
Alameda, Contra Costa, Solano
2024 2025 % Change
Median Price 785000 806000 2.7%
Average Price per SF 544 564 3.7%
Number of Sales 855 847 -0.9%
Median DOM 25 25 0.0%
Copyright © EBValueReport.com

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About the Author

My name is Kyle Paquin.

I have been a Certified Residential Real Estate Appraiser since 2015 within the East San Francisco Bay Area. My firm provides expert valuations on residential properties in the region. I have a passion for teaching and appraiser education which has led me to develop instructional courses for the Real Estate Appraisers Association (REAA). I currently live in Benicia where I operate a mid-term rental ADU with my wife and child.

The divide between agents, appraisers and lenders is not healthy for our clients. I aim to bridge the gap between us all so we can serve the market with a higher level of trust, integrity and knowledge. The mission of this blog is to provide greater clarity into how the East Bay Area markets are moving on a monthly basis. If you like this work or think that it sucks, please let me know.

My contact information

Office #: 925-937-3307

Email: office@valuableappraisal.com

Website: https://www.valuableappraisal.com/

Thanks for reading this market update