The Lamorinda real estate market, encompassing Lafayette, Moraga, and Orinda, closed out 2025 in a slightly cooler position compared to 2024, with median home prices remaining largely flat. Early in the year, strong buyer demand was tempered by political and economic uncertainty, which slowed momentum across many Bay Area markets. However, conditions improved in the second half of the year as stock markets rebounded and mortgage interest rates began a sustained decline.
As an affluent market, Lamorinda demonstrated greater resilience than many more affordability-constrained areas. Rising household wealth among higher-income buyers, driven largely by equity market gains, helped support demand for higher-priced homes even during periods of broader market volatility. While overall activity remained below long-term historical norms, sales volume increased modestly year over year, and luxury home sales showed renewed strength.
Entering 2026, several key factors are aligning in favor of a stronger spring market. Mortgage rates are near multi-year lows, financial markets remain near all-time highs, and consumer confidence among affluent households has improved. At the same time, housing inventory remains limited, particularly at the start of the year, as is typical seasonally. This imbalance between buyer demand and available supply historically leads to more competitive conditions during the spring selling season.
If economic conditions remain stable and no new external shocks emerge, Lamorinda is well positioned for increased market activity in the coming months. Buyers and sellers should expect heightened competition, faster sales, and continued strength in well-priced, well-prepared homes, especially in desirable neighborhoods and higher-end segments.
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