Macro Forces Causing Power to Shift from Sellers to Buyers
For years, Lamorinda operated in a classic seller’s market—low inventory, cheap financing, and strong demand. But broader economic forces over the past 18 months have pushed the market into a new phase, one where buyers finally have more leverage, particularly as we enter the slower holiday season.
The Macro Shift Behind the Change
1. Higher Interest Rates = More Disciplined Buyers
With borrowing costs significantly higher than during the pandemic, buyers are more selective and far less willing to stretch on price. Decision cycles are longer, and value matters more.
2. Inventory Is Accumulating
Across the Bay Area, 55% of active listings have been on the market 60+ days, and 36% for 90+ days. Lamorinda mirrors this softening.
When demand cools faster than new listings arrive, the market naturally shifts toward balance.
3. Seller Expectations Are Resetting
The gap between peak-pandemic pricing and today’s buyer expectations is closing. Homes priced using 2021–2022 logic are sitting. Turn key homes priced realistically are selling—often smoothly.
4. Economic Caution Is Affecting Big Decisions
Even with a stable job market, consumers are more cautious. Families are thinking about long-term affordability, not just winning the next bidding war.
What This Means in Lamorinda
Lamorinda is still highly desirable, but the pace has changed.
We’re seeing:
• Longer Days on Market
• More realistic pricing conversations
• Buyers comparing more options
• Negotiations becoming more common
This is not a downturn—it’s a correction toward balance.
The Opportunity Window
Right now, we’re in a transitional stage where buyers have more influence on pricing and terms than at any time in the past several years. Sellers are adjusting, inventory and ‘Days on Market’ is higher than usual, and buyers can move with more intention and less urgency. These windows tend to be temporary, and they often close quickly once confidence returns in the spring.
Market Perspectives with William Tang: Nin Tang Homes’ (Unofficial) Chief Investment Advisor*