Bay Area

Market Overview

• Property values demonstrate divergent trends throughout the Bay Area, with Silicon Valley sustaining momentum while East Bay markets endure six consecutive months of value erosion.

• Supply conditions exhibit significant regional variation - San Francisco confronts acute inventory constraints while most other markets experience expanding availability.

• Regardless of differing supply scenarios, properties are requiring substantially extended marketing timeframes across virtually all Bay Area submarkets.

• Market environments span from intensely competitive seller-dominated conditions in central Silicon Valley to more neutral or buyer-advantageous circumstances in peripheral regions.

Contrasting price trajectories highlight market polarization

The Bay Area's residential market exhibits pronounced regional disparities in value performance. Silicon Valley continues showcasing exceptional durability, with Santa Clara County single-family properties preserving their remarkable appreciation trend for more than 12 months without any annual decline. Conversely, East Bay markets have endured six straight months of median value reductions, with single-family properties declining 2.08% and 6.56% annually in Alameda and Contra Costa Counties respectively. San Francisco and North Bay markets occupy a middle position, with San Francisco single-family properties advancing 2.34% annually and generally steady conditions throughout most North Bay counties, though Napa County emerges with a significant 14.94% retreat in single-family property values.

Supply constraints intensify in San Francisco while regional availability expands

San Francisco's availability shortage continues escalating, with 15.93% reduced single-family supply and 19.91% fewer condominium units compared to the previous year. This creates a dramatic contrast with Silicon Valley, where supply levels have expanded 7.63% for single-family properties and 25.86% for condominiums annually. East Bay markets are witnessing comparable supply growth with a 15.68% increase in active single-family listings, while North Bay regions have recorded substantial monthly supply decreases of 21.98% for single-family properties, primarily due to exceptionally low new listing volumes in July.

Prolonged marketing periods establish new regional benchmarks

Regardless of varying supply circumstances, one universal pattern emerges throughout the Bay Area: properties are requiring extended sales cycles. East Bay markets have registered especially notable increases, with single-family properties now averaging 16-18 days on market versus 13 days previously, while condominiums require 31-35 days compared to 19-24 days in 2024. Silicon Valley properties continue moving efficiently at under 2.5 weeks, though this still represents an extension from last year. North Bay markets are recording 20-30% longer marketing cycles in most submarkets, with certain areas like Marin and Napa County condominiums experiencing substantial increases of 109.68% and 284.21% respectively.

Competitive dynamics evolve toward greater equilibrium

Shifting supply and pricing patterns are transforming market competitiveness throughout the Bay Area. San Mateo and Santa Clara Counties maintain intensely competitive seller-dominated environments with merely 1.7 and 1.5 months of supply respectively. Nevertheless, other areas are gravitating toward more neutral conditions, with Marin County's single-family segment transitioning to a seller-favorable market at 2.3 months of supply, while San Francisco's condominium market nears equilibrium at 3.1 months. East Bay markets preserve seller-favorable conditions for single-family properties despite declining values, while condominium markets throughout most regions have transitioned to buyer-advantageous conditions with 3.4 to 5.7 months of supply available.