Cooling Market, Cautious Buyers: What’s Really Happening in Our Local Housing Market?

As your neighborhood expert in Lafayette, Walnut Creek, Danville, Concord, and surrounding communities, I keep a close watch on local real estate trends—and right now, it’s clear: the market is shifting. While the summer temps have been heating up, the housing market has cooled, offering new dynamics for both buyers and sellers.

According to a recent Redfin report, 14.9% of pending home sales in California fell through in June, the highest June cancellation rate since Redfin began tracking in 2017. Here in Central Contra Costa, I’m seeing that trend play out as well—buyers are more cautious, and some agents report deals are falling apart during the inspection period or financing phase. 

So why the hesitation?

Today’s buyers are navigating high home prices, stubborn mortgage rates (still hovering near 6.8%), and general economic uncertainty—from inflation to talk of recession. In some cases, a buyer may cancel because a better home hits the market. Others walk away after discovering an inspection item that feels overwhelming. And some are surprised when they fully calculate monthly costs beyond the mortgage—property taxes, HOA dues, insurance, and utilities—which can significantly stretch a budget.

Here in Lafayette, for example, I’ve noticed buyers are taking longer to make decisions, and in Walnut Creek, homes that once flew off the market in under two weeks are now taking 3–4 weeks to sell. Danville is still strong, but buyers are negotiating more aggressively. Even in Concord, traditionally one of the more affordable cities in our area, homes are sitting longer, and price reductions are becoming more common.

What This Means for You

• Early 2025: A high proportion of sellers were adjusting their pricing—up to 45% in some months—likely due to shifting buyer demand and market recalibration.

• By June: Reductions dropped sharply, which may indicate that sellers had either aligned pricing more strategically or that fewer listings remained actively reduced.

Summary Table

Month	% of Active Listings with Price Drop
February	34.6%
March	45.4%
April	13.2%
May	34.9%
June	7.14%

While it may feel like we’re entering a “buyer’s market,” it's really a market of opportunity—for both sides. Sellers are having to get realistic and competitive—pricing properly, staging beautifully, and often being more flexible during inspections. On the flip side, buyers have a rare window to negotiate more favorable terms, something we haven’t seen in several years.

As always, your best strategy is one that’s grounded in local insight. While national headlines are helpful, they don’t replace boots-on-the-ground experience in your neighborhood. Whether you're selling a longtime family home or stepping into homeownership for the first time, I'm here to help you navigate these shifting tides with confidence and clarity.

Let’s talk about what today’s market means for you—and how we can make it work in your favor.

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