Is the Silicon Valley Real Estate Market Shifting? An Agent's Perspective
Aug 06, 2025š The residential real estate market is akin to a school of fish—the strong in front and weak in back. The outliers are leading on the sides or lagging behind.
Instead of using the Case-Shiller reports on Metropolitan Statistical Areas (MSAs), which uses public records from the past 2-3 months, let’s consider the MLSlistings, Silicon Valley's multiple listing service, which provides real-time, hyper-local transaction data from realtor subscribers.
Here are the facts:
1ļøā£ According to MLSlistings, homes still sell in 9 or fewer days in my hometown of Sunnyvale, yet the median price has receded from $2,800,00 in March to $2,675,000 in June.
2ļøā£ Unsold single-family home inventory in Santa Clara County was measured in days and weeks for 61 of the last 70 months, yet the price per square foot ratio decreased from $1,307 in March to $1,228 in June. The attached chart shows single-family home price history in Santa Clara County.
3ļøā£ The California Association of Realtors® (C.A.R.) noted that seven of the nine counties in the San Francisco Bay Area saw a month-to-month decline in single-family home prices in June. The median sold price for June 2025 was $1,400,000, the same as in June 2024. C.A.R. reports 18% of the households could afford a median price single-family home in Q1/2025.
4ļøā£ On July 17, C.A.R. Chief Economist Jordan Levine commented in a press release, "The proportion of homes closing above asking price has declined, reflecting a reduction in the intensity of bidding competition. As a result, sellers are demonstrating greater willingness to negotiate on pricing, concessions, and other terms, which creates more advantageous conditions for those considering a home purchase.”
What does this all mean?
In Silicon Valley, homebuyers now feel empowered to negotiate for favorable prices, terms, and seller concessions. Many sellers must strengthen their positioning by conducting pre-sale inspections, completing repairs, and offering seller concessions.
Full-service Realtor Pat Kapowich is a Certified Real Estate Brokerage Manager and career-long consumer protection advocate. He is based in his hometown of Sunnyvale, California. Office: 408-245-7700; Broker# 00979413 [email protected]
