Bay Area

Market Overview

• San Francisco continues commanding the Bay Area with double-digit value appreciation in both single-family properties and condominiums, while values throughout Silicon Valley and the western North Bay are also advancing.

• Availability levels maintain positions substantially beneath last year throughout the entire region, with annual reductions spanning from 12% in Silicon Valley to nearly 37% in North Bay markets and close to 40% in San Francisco.

• Single-family properties are transacting at an exceptionally expeditious momentum, with listings in Santa Clara County moving in merely 9 days and San Francisco properties routinely transacting for more than 20% over asking value.

• The condominium sector has transitioned to a buyer-favorable market in several East Bay and North Bay counties, establishing a pronounced contrast with the intensely competitive single-family property market.

San Francisco establishes records while substantial portions of the Bay Area register consistent gains

April delivered another month of exceptional value appreciation to San Francisco, with single-family properties climbing 21.43% annually to a median transaction value of $2,125,000 and condominiums surging 18.14% to $1,400,000. These double-digit advances have become characteristic in San Francisco, where competition for properties remains at extraordinary levels. Throughout Silicon Valley, values moved in a positive trajectory as well, with San Mateo County single-family properties advancing 2.19% to $2,167,500 and Santa Cruz County registering a 5.29% gain to $1,342,500, while Santa Clara County maintained perfect stability at $2,100,000.

North Bay markets witnessed encouraging outcomes in Marin and Sonoma Counties, with annual gains of 4.38% and 2.35%, respectively, though Napa and Solano Counties perpetuated softening. East Bay markets experienced moderate single-family value retreats in both counties, with Alameda County declining 2.44% and Contra Costa County declining 1.71%. The condominium sector remains a study in contrasts, with San Francisco condominiums securing premiums of roughly 7% over asking value, while Alameda County condominiums declined 10.38% and Silicon Valley condominiums registered retreats throughout.

The Bay Area's persistent availability shortage is characterizing the spring market

Despite operating in the heart of the spring transaction season, availability levels throughout the Bay Area maintain positions stubbornly beneath where they stood a year ago. San Francisco continues experiencing some of the most acute constraints, with single-family availability declining 36.99% and condominium availability declining 39.01%, producing fewer than 700 properties available for transaction in the entire municipality. North Bay markets trail closely, with single-family property availability declining 36.98% and condominium availability declining 24.57%.

East Bay markets have witnessed single-family availability decline by 25.23% and condominium availability contract by 14.82%. Silicon Valley completes the scenario with single-family availability declining 12.03% and condominium availability declining 6.47%. The encouraging development is that transaction activity maintains robust levels. North Bay single-family property transactions are advancing 9.01% annually, and April witnessed nearly equivalent single-family property transactions as new listings in North Bay markets, emphasizing just how expeditiously the market is absorbing available supply. Until additional sellers determine to list their properties, buyers will continue confronting an exceptionally competitive environment.

Single-family properties are transacting within days, but the condominium sector presents an inconsistent scenario

The transaction momentum for single-family properties throughout the Bay Area remains outstanding. In Santa Clara County, the typical property is transacting in merely 9 days. San Mateo County properties are moving in 11 days, San Francisco single-family properties in 12 days, and Marin County properties in just 13 days. East Bay listings are completing in 13 days in both Alameda and Contra Costa Counties, while Sonoma and Solano Counties are both registering 26 days. These figures are predominantly unchanged from a year ago, demonstrating the sustained strength of buyer demand.

The condominium sector presents a more complex scenario. San Francisco condominiums have witnessed among the most substantial transformations, transacting in just 14 days compared to 33 days last April, a 57.58% annual reduction. Nevertheless, Santa Clara County condominiums are requiring 46.67% additional market duration than last year, and San Mateo County condominiums are advancing 13.64%. The singular positive development outside San Francisco is Santa Cruz County, where condominium marketing duration actually improved by 3.33% compared to last April.

Sellers dominate the single-family sector while condominium buyers gain positioning

When determining whether a market is a buyers' market or a sellers' market, we look to the Months of Supply Inventory (MSI) metric. The state of California has historically averaged around three months of MSI, so any area with at or around three months of MSI is considered a balanced market. Any market that has lower than three months of MSI is considered a seller's market, whereas markets with more than three months of MSI are considered buyers' markets.

The single-family property market maintains decisively seller-favorable territory throughout the Bay Area. San Francisco maintains merely 1.1 months of supply, while San Mateo County registers 1.4 months and Santa Clara County at 1.8 months. Alameda County maintains 1.8 months, Contra Costa County 2.1 months, Marin County 2.2 months, Solano County 2.6 months, Sonoma County 2.8 months, and Santa Cruz County 2.9 months. Napa County remains the singular exception at 6 months, though this still represents a 33.33% annual reduction. The condominium sector, nevertheless, has transitioned decisively in favor of buyers in several areas. Alameda County maintains 4.3 months of condominium supply, Contra Costa County 4.1 months, Santa Cruz County 4.5 months, Santa Clara County 4 months, and Napa County 5.6 months. San Francisco's condominium market has contradicted this pattern entirely, transforming from a buyer-favorable market last April at 4.4 months to a robust seller-favorable market currently at just 2.3 months. The expanding division between the single-family and condominium markets remains among the most characteristic elements of the Bay Area heading into the summer months.