Resilience in the Bay Area Housing Market
Despite economic uncertainty and fluctuating interest rates, the Bay Area housing market remains strong. While some regions saw modest price declines, others, like Alameda and Contra Costa, experienced year-over-year increases of 2.27% and 1.95%, respectively, in median single-family home prices. Silicon Valley continued its growth trajectory, with Santa Clara and Santa Cruz Counties posting 5.88% and 3.36% increases, respectively, while San Mateo saw a slight 2.44% dip. Meanwhile, San Francisco experienced declines, with single-family home prices dropping 9.68% to a median of $1,422,500 and condos falling 8.76% to $990,000. The North Bay showed stability, though Marin and Napa Counties gave back some of last year’s gains, with median price declines of 6.69% and 10.20%.
Inventory Trends Are Mixed Across the Bay
Inventory levels are diverging across regions. The East Bay saw a 21.59% increase in new single-family home listings and a 26.39% rise in active listings, while Contra Costa condo listings increased by 26.42% and active inventory surged 38.24%. In contrast, the North Bay faced a 16.55% drop in active single-family home listings, contributing to a tighter market. San Francisco remains constrained, with a 10.34% decline in single-family home inventory and a 10.91% drop in active condo listings. Silicon Valley’s condo market is an outlier, seeing a 36.62% rise in active listings and a 45.2% jump in new condo listings, signaling possible buying opportunities.
Days on Market & Buyer/Seller Power Balance
Homes are staying on the market longer in some regions while others continue to move quickly. Contra Costa single-family homes are sitting 26% longer than those in Alameda, while Alameda condos are lingering 65% longer than Contra Costa condos. In Marin, single-family homes are taking 34% longer to sell, and Napa condos saw a 198% spike in days on market. Meanwhile, Silicon Valley’s single-family home market remains highly competitive, with listings spending just 12 to 32 days on the market, while condos are taking 12.9% and 6.45% longer to sell in Santa Clara and Santa Cruz.
The Bay Area Remains a Sellers’ Market (With a Few Buyer-Friendly Spots)
Most of the Bay Area continues to favor sellers, with low months of supply inventory. East Bay single-family homes remain in strong seller territory, with 1.3 and 1.5 months of inventory in Alameda and Contra Costa Counties, respectively, while condos hover near balance. Napa is a buyer’s market with 3.8 months of supply, while Sonoma (2.0), Marin (1.2), and Solano (2.1) remain seller-dominated. San Francisco also leans heavily in favor of sellers, with only 1.1 months of single-family home inventory and 2.8 months for condos. In Silicon Valley, single-family homes are firmly in a sellers’ market, with as little as 0.7 months of inventory in Santa Clara, while Santa Cruz condos, with 3.7 months of supply, favor buyers.
Looking Ahead
With demand staying strong and inventory constrained in many areas, competition is likely to persist. However, growing condo inventory in some markets may provide rare buying opportunities, particularly in Napa and Santa Cruz. As the spring season approaches, inventory trends and interest rate changes will shape the market’s next phase, making it crucial for buyers and sellers to stay informed.
