“Although price growth has slowed since rates have returned to historic norms and inventory has increased this year, supply remains tight, and affordability has deteriorated, so a full recovery to pre-pandemic levels is still a few years out, even though sales are expected to continue rising in the Bay Area during 2025,” Levine said.
The Bay Area housing market is poised for another year of shifting dynamics in 2025, with inventory levels, mortgage rates and regional trends shaping outcomes for buyers, sellers and renters alike. While the market may not experience dramatic shifts, steady changes are expected across key areas, signaling new opportunities and challenges, according to Jordan Levine, the senior vice president and chief economist for the California Association of Realtors.
He noted that the state’s housing market is expected to improve overall, with sales rising by roughly 10% in 2025 after outperforming 2024 predictions.
“Although price growth has slowed since rates have returned to historic norms and inventory has increased this year, supply remains tight, and affordability has deteriorated, so a full recovery to pre-pandemic levels is still a few years out, even though sales are expected to continue rising in the Bay Area during 2025,” Levine said.