Increase in Bay Area Housing Inventory Expected by 2025
The future of the Bay Area’s housing market is looking up for potential buyers, as more houses are expected to hit the market in 2025.
“I have a savings account for a down payment for first-time buyers,” said Frida Ramirez of San Jose. But she feels that something has to change, like lower mortgage rates.
Mortgage rates have been above 6% for over a year now, along with high prices, which have been holding back many potential buyers and sellers.
Bay Area broker Tim Lee mentioned, “The difference for them to move up or downsize with a mortgage rate going from 3% to 6.5 or 7% is quite significant.”
The National Organization of Realtors anticipates more homes entering the market this year. Silicon Valley agent Linsie Dridley emphasized the need for more inventory for a balanced market, which typically leads to lower prices—something potential buyers have been eagerly waiting for.
Dridley pointed out that as people have adjusted to interest rates around 6%, the possibility of progress may prompt action, especially as we enter a new year and a new administration that could impact economic factors like tax cuts, tariffs, and immigration cutbacks, which might affect consumer prices and the housing market.
