The Bay Area real estate market continues to forge ahead: higher inventory emerges weekly as the summer selling months approach, leading to increased activity and prices.
I wish I had more insight on the impact impending (and retracted and modified) tariffs and the ever-fluctuating stock market may have on our local market, but the story is still unfolding.
First, I suspect any potential effect to be delayed. Those purchasing homes now have already pulled funds out of the stock market for down payments. If they find themselves with extra cash, they may bump up purchase price, especially in multiple offer situations. I anticipate tariffs to raise the cost of renovations and new construction, but not all vendors have raised prices yet. It’s unclear which industries may be impacted — and to what extent.
Initially, I assumed that as we linger in economic uncertainty, more buyers (and sellers) would hunker down and wait until the economic direction becomes clearer.
In the Bay Area, though, so many buyers have solid financial backing and inventory remains low. Even with fewer buyers, we may still see robust activity. (Going from 8–10 buyers per home to 2–3 still results in multiple offers and over-list sales.)
Recently, I’ve started to suspect that if many become turned off by stock market volatility, they may shift to more reliable long-term investments — like real estate. If that happens, market fluctuations may actually spur real estate activity and push prices higher.
I'm happy to discuss how this may impact your buying or selling plans.
