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By Devin Davis
Bay Area homebuyers are seeing more favorable market conditions than they have in years even as the region maintains its position as a premier destination for homeownership, according to new data from the National Association of Realtors based on existing home sales and includes single-family homes, townhomes and condominiums.
The San Francisco-Oakland-Hayward metropolitan area recorded a median existing home price of $1.4 million in the second quarter of 2025, representing a stabilizing market after years of rapid price increases. While the Bay Area remains the third-most desirable market in the nation by median price, buyers are finding more opportunities to negotiate and take their time with decisions.
“We’re seeing a much more balanced market than we’ve had in years,” said Tracey Esling, president of the Bay East Association of Realtors. “Buyers who felt shut out during the pandemic are finding they have more options, more time to make decisions and real negotiating power again. It’s a significant shift that’s creating opportunities for people who’ve been waiting for the right moment.”
NAR data shows that while the national median price reached $429,400, the West region (which includes the Bay Area) saw minimal price growth of just 0.6%, compared to much steeper increases of 6.1% in the Northeast and 3.5% in the Midwest.
Although we’re not in a buyer’s market, this slower growth reflects a market that’s giving buyers more breathing room.
“What’s encouraging is that we’re seeing price stability rather than the rapid escalation we’ve seen in previous years,” Esling explained. “For buyers, this means they can take time to find the right home without worrying about being priced out next month. Buyers are able to include reasonable contingencies again.”
The Bay Area’s position among the nation’s top markets reflects the region’s continued appeal and strong economic fundamentals. High-paying jobs, excellent schools and quality of life continue to draw residents who view homeownership as a long-term investment.
NAR noted that nationally, home sales continue to be influenced by mortgage rates, but chief economist Lawrence Yun suggested that if interest rates decline, areas with strong job growth could see increased buyer activity.
“The Bay Area’s job market remains robust, and that economic stability is good news for both buyers and sellers,” Esling said. “People are making thoughtful decisions about homeownership, and there are genuine opportunities for those ready to make a move.”
For prospective buyers, the current market offers several advantages that weren’t available during peak pandemic conditions. Homes are staying on the market longer, giving buyers time to thoroughly evaluate properties and neighborhoods. Sellers are more willing to negotiate on price and terms, and buyers can often include inspection and financing contingencies that protect their interests.
“We’re hearing from buyers who are learning to be patient, but are pleasantly surprised by the process,” Esling noted. “After years of needing to move fast and compete aggressively, they’re finding they can be more selective and make offers that work for their families and budgets.”
“For anyone who’s been thinking about buying, this is actually an excellent time to explore your options,” Esling added. “Interest rates may fluctuate, but the fundamentals that make the Bay Area attractive haven’t changed. And now buyers have the advantage of a more balanced market to work with.”
Editor’s note: Devin Davis is a public affairs specialist for the Bay East Association of Realtors, which is based in Pleasanton.
