All about Life & Real Estate in Silicon Valley – Broker Michael Koo's Blog.

The Bay Area housing market remains strong, with significant year-over-year price increases and robust buyer interest. In March 2024, the median sold price for single-family homes reached $1,386,500, marking a 15.5% rise from the previous year. While sales activity surged 31.7% month-over-month, there was a 5.4% decline year-over-year. Regional trends show varying price increases across counties, with Marin County experiencing the highest growth. The market is slightly favoring sellers, but experts do not predict a crash, citing strong economic fundamentals and ongoing demand.

The cost of living in the U.S. is rising, with home prices increasing by 48.55% over the past decade, now averaging $257,000. Experts predict that by 2030, the average home value could reach around $382,000. States like California, Hawaii, and Washington are expected to see significant appreciation, with California's average home value potentially exceeding $1 million. Other states like Idaho and Arizona are emerging as affordable alternatives. Policymakers may need to implement strategies to increase housing availability in high-demand areas.

The California Association of Realtors (C.A.R.) forecasts a more favorable interest rate environment in 2025, easing the "lock-in" effect and improving housing inventory. Existing single-family home sales are expected to rise by 10.5% to 304,400 units, with median home prices increasing by 4.6% to $909,400. Lower borrowing costs and increased listings will attract buyers and sellers, particularly first-time buyers. While inventory is projected to improve, demand will also rise, keeping the market competitive despite a modest slowdown in price growth.