Oakland, CA Housing Market Report

The Oakland housing market is currently experiencing a notable period of correction, transitioning into a landscape that increasingly favors patient buyers. As of December 2025, the median home value has settled at $687,040, representing a significant 9.31% decline compared to the previous year. This downward pressure on pricing is further evidenced by the increase in days on market, which has risen to 63 days. While the sale-to-list ratio remains at a balanced 1.0, indicating that homes are generally selling for their asking prices, the lack of aggressive bidding wars suggests a cooling environment compared to the historical volatility of the San Francisco-Oakland-Berkeley metro area.

Price trends over the last six months show a consistent, albeit slowing, depreciation. After a sharper drop between July and September, the market appears to be searching for a floor, with the marginal decrease from November to December suggesting a potential stabilization. This trend is likely driven by a combination of higher borrowing costs and a shift in regional demand, as active inventory remains relatively flat with only a 0.44% year-over-year decrease. Interestingly, while the for-sale market cools, the rental market remains robust with a nearly 4% increase in median rent, highlighting a persistent demand for housing in the East Bay despite the fluctuations in property values.

Looking ahead, both buyers and sellers must adjust their expectations to this new reality. For sellers, the increase in time on market means that properties must be priced accurately and presented in top condition to attract interest. For buyers, the current climate offers a rare window of opportunity to negotiate without the intense pressure of years past, though they should remain mindful of the broader economic factors impacting the Bay Area. As inventory remains tight, any significant shift in interest rates could quickly tighten the market again, making the current period of price stabilization a critical time for strategic acquisitions.