Analyzing the Bay Area Real Estate Market: Trends and Insights

It’s been quite the year for the Bay Area real estate market. This information is important to anyone who has plans to buy or sell in the Bay Area, whether for personal or investment reasons. Trends from the past and current data can shed light on the direction the San Francisco Bay Area housing market is going.

We’ve compiled data from various counties and institutions to give you a clear look at what’s happening in key Bay Area counties.

A shot of Downtown San Jose

2023 Update on Bay Area Real Estate Market Trends

You can look at the median sold price of single-family homes to reveal the overall health of the housing market. By examining these median sold prices, we can see an overview of pricing trends from the past year.

The Bay Area is massive, with approximately 8 million people who call it home, but some trends overlap. Buyers and sellers should take a look at the current trends and get a real estate forecast from local realtors.

In San Francisco, California, the median sold price was $1,255,000, according to a July 2023 report. Compared to July 2022, the median sold price is only down 0.3%.

As for the number of home sales, July 2023 figures were down 14.2% compared to July 2022.

Latest Median Sold Prices Counties in The Bay Area

Looking at an overview of the Bay Area real estate market is great, but a county-by-county perspective is also helpful. Let’s look at some of the median prices in different counties around the Bay Area.

Alameda County had a median sold price of $1,260,000 in July 2023.
Year-over-year change to median sold price: - 4.9%
July 2023 property sales compared to July 2022: 19.0% decrease

Contra Costa County had a median sold price of $900,000 in July 2023.
Year-over-year change to median sold price: + 2.3%
July 2023 property sales compared to July 2022: 18.8% decrease

Marin County had a median sold price of $1,609,500.
Year-over-year change to median sold price: - 8.0%
July 2023 property sales compared to July 2022: 10.2% decrease

Napa County had a median sold price of $927,500.
Year-over-year change to median sold price: - 13.1%
July 2023 property sales compared to July 2022: 5.7% increase

San Francisco had a median sold price of $1,460,000.  
Year-over-year change to median sold price: - 14.1%
July 2023 property sales compared to July 2022: 13.4% decrease

San Mateo County had a median sold price of $1,984,000.
Year-over-year change to median sold price: + 1.0%
July 2023 property sales compared to July 2022: 18.6% decrease

Santa Clara County had a median sold price of $1,800,000.  
Year-over-year change to median sold price: + 3.4%
July 2023 property sales compared to July 2022: 6.2% decrease

Solano County had a median sold price of $600,560.  
Year-over-year change to median sold price: - 0.1%
July 2023 property sales compared to July 2022: 8.4% decrease

Sonoma County had a median sold price of $850,960.  
Year-over-year change to median sold price: + 4.4%
July 2023 property sales compared to July 2022: 15.7% decrease

Bay Area Housing Market Forecast for 2023 and 2024

Homes are generally selling for less and selling less frequently, although some counties don’t follow this trend. Inventory is still limited, so it’s likely that the Bay Area real estate market will remain a seller-friendly market.

Prices have generally decreased compared to the post-pandemic boom. This is backed up by the S&P 500/Cash Shiller Home Price Index, which shows a home price peak in May 2022.

An overview of Oakland City Center

Factors that will affect the Bay Area real estate market in the future:

Population Decrease

It’s difficult to get precise numbers on population decline, but it appears that the Bay Area population has dropped by around 250,000 between April 2022 and July 2022. The decrease in population can be tied to pandemic-related job losses, migration to other states in the US, and high rent, which is up 5% for 2 bedroom apartments (but down 5% for studios and one bedrooms).

Mortgage Rate Increase

Buyers are having a tough time entering the real estate market as mortgage rates reach 30-year highs. Some potential buyers are carefully watching the market to wait for more affordable monthly mortgage payments.

Inflation

As inflation rises, buyers have less purchasing power in the Bay Area real estate market. This has the same negative effect on groceries, utilities, and most other living expenses.

Is Now a Good Time to Buy Property in the Bay Area?

If ‌predictions about Bay Area real estate are accurate, we may see a slight decrease in prices as the market becomes more neutral. That being said, many buyers are paying slightly over the listing price and inventory will likely remain relatively low.

Buyers should monitor ‌listings in multiple counties and make competitive bids on properties that meet their needs.

Connect with us for the most current information about Bay Area real estate and the different counties around San Francisco. We’ll be happy to share current trends and point you toward competitively priced properties in cities and zip codes all around Santa Clara.

More Questions? Follow-up With Us!

If you have more questions about what to expect from the markets around the Bay Area, don’t be afraid to reach out to us today. Our experts are experienced in all property types and the entire San Francisco Bay Area, and we can help you to find what you need to know today.