After last week’s announcement, the Federal Reserve confirmed that interest rates have been lowered and indicated that two additional rate cuts are expected later this year. This marks an important shift for the Bay Area multifamily market and brings positive momentum for both buyers and sellers.
Lower interest rates reduce borrowing costs, increase confidence, and help unlock activity that had been paused during the higher-rate environment.
What This Means for Buyers and Sellers
For sellers, lower rates typically lead to increased buyer interest and stronger pricing. As financing becomes more affordable, buyers are often willing to pay more for well-located, stable assets.
For buyers, the benefits are immediate: lower monthly mortgage payments and improved cash flow, making multi-unit investments more attractive and sustainable.
Upcoming Listing Near Grand Avenue
A five-unit apartment building located just two blocks from Grand Avenue—within walking distance to shopping and restaurants—will be coming to market within the next 30 days.
The property is expected to be priced around a 5.7% cap rate. If you have interest or would like additional details before it officially launches, feel free to reach out.
This will be my third listing since May, and the trend has been consistent: when a property is priced correctly and located in a strong area, buyer demand follows.
Buyer Demand Remains Active
The buyer market remains strong. I continue to meet qualified buyers who are actively searching for multi-unit properties and are ready to move forward when the right opportunity comes along.
For information on recent listings, sales, and previous market updates, you can visit East Bay Apartment Advisors.
Current Market Valuations
The Federal Reserve has already lowered rates by 25 basis points and has signaled two additional reductions later this year.
After an extended period of elevated interest rates, buyers and sellers are now aligned on market valuations. As future rate cuts are announced and implemented, we expect to see increased transaction volume. Historically, lower mortgage rates allow buyers to stretch slightly on pricing, which supports higher sale values.
Sellers continue to receive strong offers for properties that:
- Are in good locations
- Have stable rental income
- Show little to no deferred maintenance
Outlook for East Bay Rents
Rental demand across the East Bay is strengthening. Conversations with local property management companies confirm that the market is warming up.
Many Bay Area employers are continuing return-to-office or hybrid work models, which supports consistent rental demand. At the same time, new apartment construction has slowed significantly. Reduced supply should lead to increased interest in available units and help maintain low vacancy rates as we move into better weather.
If you’re having difficulty filling a vacancy or have questions about rent strategy, feel free to reach out. In many cases, offering a temporary rent concession is a better approach than permanently lowering rent for both new and existing tenants.
Current Sales Market
If you’re considering selling within the next 6–12 months, starting the process now is a smart move. The market remains strong, with buyers underwriting deals based on income levels similar to pre-COVID conditions.
A common question sellers ask is how to defer capital gains taxes. Two common strategies include:
- Delaware Statutory Trusts (DST)
- 1031 Tax-Deferred Exchanges
I’m happy to provide more information on either option.
Earlier this spring, a fourplex in Oakland went into contract at list price with a short closing and no issues—another example of how strong pricing and full marketing can deliver excellent results.
Current Market for Building Sales
If you’re thinking about selling your apartment building, I can assist with valuation, strategy, and guidance throughout the process.
I’m also in contact with two of the top East Bay multi-unit lenders who are actively closing transactions. Buyers with solid down payments can still secure financing, and I can help navigate the process from start to finish.
Experienced representation matters. Comprehensive marketing—including major listing platforms, broker networks, and targeted email campaigns—can expose your property to tens of thousands of qualified buyers.
Looking forward to a strong Fall 2025.
If you have questions, would like an evaluation, or want to discuss opportunities, feel free to reach out anytime.