From ADUs to Insurance Hurdles: What’s Shaping Bay Area Real Estate

California’s housing market is tilting toward buyers. Mortgage rates are easing, inventory is climbing, and Contra Costa County is starting to feel the shift.

What’s Happening in Contra Costa County

• Median sale price: $780,000 in July, down almost 6% year-over-year

• Average days on market: 27, up from 17 last summer

• More leverage for buyers: Sellers are adjusting prices and negotiations are opening up

Game-Changer: ADUs Sold as Condos

San Jose just became the first city in California to allow accessory dwelling units (ADUs) to be sold separately as condos.

Why it matters:

• Buyers get a more affordable entry point into ownership

• Sellers gain flexibility and potential income options

This model could spread to other Bay Area cities—including Contra Costa County.

Development Watch: Retail to Residences

A former Macy’s store in Corte Madera may be transformed into 300 housing units plus retail.

This type of adaptive reuse could inspire Contra Costa cities to reimagine underused commercial spaces as housing solutions.

Insurance Crisis: A New Hurdle

Wildfire risk is pushing more homeowners into the FAIR Plan, California’s insurance of last resort.

• Over 610,000 policies are now active—double from two years ago

• Insurance delays are slowing transactions, sometimes more than mortgages

For both buyers and sellers, securing coverage is becoming one of the toughest parts of closing. Plan ahead and be prepared.

What This Means for You

• Buyers: You have more negotiating power and more choice, but be prepared for extra time when securing insurance.

• Sellers: Pricing strategy is key, and patience is part of the process. Strong insurance positioning can also help your listing stand out.

Thinking of Buying, Selling, or Adding an ADU?

The Bay Area is shifting, and Contra Costa is right in the mix. Whether it’s a buyer’s advantage, an ADU play, or navigating insurance, now is the time to plan your next move.

Schedule a Call to Get Ahead
Let’s talk strategy. Whether you want to lock in a better rate, sell your home, or position yourself to buy, Schedule a call today and we’ll create a plan tailored to your goals.