Bay Area Real Estate Market Update – September 2025

This summer’s housing market brought no major surprises beyond typical seasonal patterns, but San Francisco, San Mateo, and Santa Clara Counties remain among the Bay Area’s strongest markets.

Now, we’re shifting into the fall selling season—running from early September to early November—when listing activity usually spikes before the holiday slowdown. The big question on everyone’s mind: What will happen with interest rates?

The Interest Rate Wild Card

As of early September, the average 30-year fixed mortgage rate dipped to 6.35%, down from 6.50% just last week. According to Freddie Mac, this was the sharpest weekly drop in the past year.

Analysts believe rates closer to 6% could unlock stronger buyer demand. At the same time, volatility remains high—rates have shifted suddenly in recent years, and upcoming inflation data will heavily influence whether the Federal Reserve moves forward with its first rate cut of 2025.

The Economy’s Mixed Signals

The AI boom in Silicon Valley and San Francisco and record-high stock market performance are strong positives for high-end housing demand, particularly in San Mateo County.

Still, uncertainty lingers: inflation readings remain mixed, consumer confidence is low, and the latest jobs report disappointed. This combination makes the direction of the market less predictable than usual.

Home Prices & Opportunities

Year-over-year, median home prices are flat compared with September 2024, holding steady. However, the median days on market—especially for condos—has been trending upward throughout 2025.

For buyers, that means:

• More homes sitting longer = greater negotiating room
• Condos may present unique value opportunities
• Falling rates could improve affordability faster than expected

After months of waiting, this may be the window for first-time buyers to get an edge.

Workshop for First-Time Buyers: NEW Way to Buy Your First Bay Area Home

Buying your first home in the Bay Area can feel overwhelming — high prices, rising interest rates, and the fear of making a mistake.

But what if your first home could actually help pay for itself?

Join us for a free online workshop where we’ll cover:

✔ How multi-unit homes and ADUs can cut your monthly payment — sometimes by thousands
✔ How rental income can boost loan eligibility and long-term wealth
✔ The best Peninsula neighborhoods (and beyond) for income-generating opportunities
✔ Financing programs built for properties with rental potential

📅 Wednesday, Sept 17
🕡 6:30–7:30 PM
💻 Online Webinar

👉 Reserve your spot now