After several months of relatively flat price action, median home sale prices picked up some serious momentum in April. The median home sold for $417,700 in April, representing a 2.10% month-over-month increase and a 0.89% year-over-year gain. This bounce is especially notable when you consider that the median sale price had been on a downward trend from June of last year all the way through January, when it bottomed out at $395,000. Since then, we've seen three consecutive months of month-over-month increases, which tells us that the spring selling season is bringing some renewed energy to the market. However, it's worth noting that mortgage rates have ticked back up in recent weeks, with the average 30-year rate climbing to 6.46% in April, up from the 6.00% low we saw in March. This uptick in rates pushed the median monthly P&I payment up to $2,115, though this is still 3.07% lower than the $2,182 the median homeowner was paying at this time last year. If rates continue to climb, it could put a ceiling on how much further prices can rise in the near term.

As the spring selling season heats up, we're seeing a significant wave of new listings hit the market. In April, there were 477,116 new listings nationwide, representing an 8.70% month-over-month increase and a 1.13% year-over-year increase. This influx of new listings is great news for buyers who have been dealing with limited options for the better part of the past few years. On the inventory side, there are now 1,470,000 homes available for sale, representing a 5.76% month-over-month increase and a 1.38% year-over-year increase. Inventory has been steadily building since its December low of 1,230,000, and we're now approaching the levels we were seeing during the peak of inventory season last summer. If this trend continues through May and June, buyers could find themselves with the most options they've had in quite some time, which would be a welcome shift in a market that has been starved for supply.

Despite the influx of new inventory and three consecutive months of rising prices, existing home sales have remained relatively flat. In April, 4,020,000 homes changed hands, representing just a 0.50% year-over-year increase and a 0.25% month-over-month uptick. While it's encouraging that sales are at least trending in the right direction, the pace of improvement has been glacial, which suggests that many buyers are still sitting on the sidelines. Part of the story here is the recent uptick in mortgage rates. After falling steadily from 6.85% last June to 6.00% in March, rates have bounced back to 6.46%, which may have given some prospective buyers cold feet. If rates stabilize or begin to decline again, we could see existing home sales pick up in a meaningful way as we move into the summer months. For now, though, it seems like buyers are content to wait and watch.

When determining whether a market is a buyers' market or a sellers' market, we look to the Months of Supply Inventory (MSI) metric. The state of California has historically averaged around three months of MSI, so any area with at or around three months of MSI is considered a balanced market. Any market that has lower than three months of MSI is considered a seller's market, whereas markets with more than three months of MSI are considered buyers' markets.

At the national level, we're seeing the market inch closer to a more balanced state. Inventory continues to build heading into the summer, while existing home sales have been essentially flat, meaning that the available supply is lasting a bit longer than it did at this time last year. However, the recent reversal in mortgage rates adds a layer of uncertainty to the equation. If rates continue to rise, we could see demand soften further, which would push the market toward buyers. On the other hand, if rates settle back down and buyers start to re-engage, the growing inventory could get absorbed quickly, keeping the market tilted in favor of sellers. As always, real estate is a highly localized asset, which is why you should check out what's going on in your local market below in the Local Lowdown!

After several months of relative stability, single-family home prices in the East Bay showed some softening in April. In Alameda County, the median single-family home sold for $1,317,080, representing a 2.44% decline on a year-over-year basis. Contra Costa County saw a similar trend, with the median single-family home selling for $860,000, down 1.71% compared to last year. The condo market continues to present a mixed picture. Alameda County condos declined by 10.38% year-over-year, with the median condo selling for $582,500. However, Contra Costa County condos bucked the trend, rising 9.44% to a median sale price of $492,500. This volatility in the condo market has been a recurring theme, as the smaller number of transactions can lead to significant month-to-month swings.

Even as we move deeper into the spring selling season, inventory levels in the East Bay remain well below where they were a year ago. Single-family home inventory stood at just 2,480 units in April, representing a 25.23% decline on a year-over-year basis. This is a remarkable figure, especially considering this is typically one of the busiest times of year for new listings. The condo market saw a similar trend, with inventory down 14.82% year-over-year to 937 units. This persistent lack of inventory continues to support pricing in the single-family market, even as we see modest year-over-year declines.

Single-family homes are selling quickly across the East Bay, with both counties seeing the average listing move in just 13 days. These figures are unchanged from where they were a year ago, signaling that buyer demand remains robust despite the slight softening in prices. The condo market is moving a bit more slowly, with the average condo in Alameda County spending 24 days on the market and Contra Costa County condos spending 21 days. While condos are taking longer to sell than single-family homes, they're still moving at a reasonable pace, suggesting that there's still healthy demand at the right price points.

When determining whether a market is a buyers' market or a sellers' market, we look to the Months of Supply Inventory (MSI) metric. The state of California has historically averaged around three months of MSI, so any area with at or around three months of MSI is considered a balanced market. Any market that has lower than three months of MSI is considered a seller's market, whereas markets with more than three months of MSI are considered buyers' markets.

The divergence between single-family homes and condos continues to be the defining feature of the East Bay market. The single-family home market remains a strong seller's market, with just 1.8 months of inventory in Alameda County and 2.1 months in Contra Costa County. These figures represent year-over-year declines of 28.00% and 25.00%, respectively, indicating that competition among buyers remains fierce. The condo market, on the other hand, has firmly established itself as a buyer's market. Alameda County ended April with 4.3 months of condo inventory, while Contra Costa County had 4.1 months. This gives condo buyers significantly more leverage in negotiations and explains why we continue to see year-over-year price declines in the Alameda County condo market.