August '25 Market Update

Market Update

Quick Take:

The median home in the US is surprisingly appreciating at a slower rate than inflation.
Mortgage rates remain stagnant, in the high 6-percent range that we’ve seen for a couple of years at this point.
Inventory is continuing to build, as existing home sales remain stagnant on a year-over-year basis.
Another FOMC meeting has come and gone, and the federal funds rate remains unchanged.

National Snapshot (June 2025):

💵 Price Growth Slows: Median home sale prices rose just 1.97% year-over-year, below the 2.7% inflation rate — signaling a more balanced market and good news for buyers.
📈 Inventory Rising: Supply is up 15.91% compared to last year, as new listings outpace new buyer activity.
🏦 Fed Holds Rates Steady: Rates remain unchanged amid economic uncertainty from new tariff policies.
💰 Mortgage Rates Stay High: Many homeowners are staying put, waiting for more favorable interest rates before selling.

Silicon Valley Snapshot (July 2025):

📉 Active Listings: 1,239 (down from June’s 1,346)
📉 Homes Sold: 726 (down from June’s 815)
⏳ Median Days on Market: 13 days (up from 10 in June)
💵 Pricing: Holding steady — sellers remain confident despite a slower sales pace.

What it means for you:
Nationally, we’re seeing more inventory and slower price growth — but locally, Silicon Valley’s market remains competitive, with steady prices and only a slight cooling in activity. This balance could make late summer an ideal window for buyers to act, while still offering strong opportunities for sellers.

BIG STORY DATA:

🏡 The Local Lowdown – Bay Area Market Snapshot

The Bay Area housing market continues to show a tale of two markets — with some regions heating up while others cool. Here’s what you need to know right now:

📊 Price Performance

Silicon Valley: Santa Clara Co. on a 12+ month streak of growth.
East Bay: Declines continue — Alameda down 2.08%, Contra Costa down 6.56%.
San Francisco: Single-family homes up 2.34% year-over-year.
North Bay: Mostly stable, except Napa Co. dropping 14.94%.

📦 Inventory Updates

San Francisco: Inventory crunch deepens — single-family down 15.93%, condos down 19.91%.
Silicon Valley: More homes to choose from — SFHs up 7.63%, condos up 25.86%.
East Bay: Listings up 15.68% year-over-year.
North Bay: Fewer new listings in July pushed supply down 21.98% month-over-month.

⏳ Time on Market

East Bay: Homes sitting longer — SFHs 16–18 days, condos 31–35 days.
Silicon Valley: Still quick (<2.5 weeks), but slower than last year.
North Bay: Longer waits, with Marin and Napa condos seeing dramatic spikes (+109% and +284%).

⚖️ Market Balance

Still Competitive: San Mateo (1.7 months supply), Santa Clara (1.5).
Leaning Balanced: Marin (2.3 months), SF condos (3.1 months).
East Bay: Single-family homes still favor sellers, but condos tilt toward buyers (3.4–5.7 months).

✨ Bottom Line: Silicon Valley and parts of the Peninsula remain highly competitive, while the East Bay and condo markets across the region are shifting toward balance. San Francisco’s inventory crunch tells a different story — fewer options, but not fewer buyers.