For years, the Bay Area real estate market has been known for intense bidding wars, soaring home prices, and fierce competition. But with mortgage rates rising and national home sales slowing, many are wondering, is it finally a buyer’s market in the Bay Area?

The short answer: not quite, but the market is shifting. Let’s break down what’s happening on the ground.

Current Bay Area Market Trends (as of mid-2025)

• Median home prices have dipped slightly by 2.5% year-over-year, a modest correction after a decade of growth.
• Active listings have increased by 18% compared to this time last year, giving buyers more choices.
• Homes are sitting on the market for an average of 28 days, up from 17 days in early 2023.
• Roughly 31% of listings experienced price reductions in Q1 2025, compared to 21% in the previous year.

These numbers suggest a cooling market, but it’s important to remember that the Bay Area isn’t like everywhere else.

Why It’s Not Fully a Buyer’s Market Yet:

• Inventory is still historically low. Despite more listings, the number of available homes remains well below pre-2019 levels.
• Job market strength continues to fuel demand. With Silicon Valley companies rebounding and biotech expanding, many buyers with strong incomes are still competing for desirable properties.
• Low turnover from existing homeowners. Many current owners are locked into ultra-low mortgage rates from before 2023 and aren’t eager to sell, keeping supply tight.

What This Means for Buyers:

It’s a better time to negotiate, you might find more price flexibility, seller incentives or the chance to avoid bidding wars in certain neighborhoods. However, prime properties in sought-after locations still sell quickly and command top dollar.

The Bay Area market is transitioning, offering rare opportunities for patient, strategic buyers but it hasn’t fully tipped into a buyer’s market just yet.