Silicon Valley Real Estate Market April 2025 Market Condition The past month has been marked by extreme volatility in the financial markets, characterized by significant fluctuations often triggered by statements from government officials, Federal Reserve Board members, or other influential economic figures. The most impactful factors have been abrupt and substantial changes—sometimes complete reversals—in previously announced government policies. Navigating these uncertainties presents the greatest challenge at present. According to Joanne Hsu, Director of the University of Michigan Surveys of Consumers, “Consumer sentiment fell for the fourth consecutive month… [The decline was] widespread across age, income, education, geographic region, and political affiliation… Expectations for business conditions, personal finances, incomes, inflation, and labor markets all continued to worsen… Year-ahead inflation expectations soared to 6.5%, the highest level since 1981.” In Silicon Valley, where a significant amount of wealth is linked to stocks, the real estate market in the Bay Area experiences heightened sensitivity to substantial stock market fluctuations. Declines in net worth increase stress for both sellers and buyers, potentially lengthening decision-making processes. New home construction is also slowing due to the challenge of pricing amidst uncertain material costs. Additionally, purchases by foreign buyers are expected to decline due to visa issues.  Mortgage Rates Mortgage rates are not anticipated to drop below 6% this year. Tariffs are expected to impact unemployment and inflation, influencing mortgage rates. Earlier predictions for this year’s mortgage rates are now obsolete. While buyers would welcome lower rates, the prevailing uncertainty may cause hesitation in making large purchases. Despite this, home prices are unlikely to decrease as inventory remains low. Resources Available If you have any questions or require real estate resources, I am here to assist. I am part of a National Professional Network that includes very seasoned Realtors, Attorneys, CPAs, Financial Advisors, and more. Below are 2 charts that show the movement in financial market and mortgage rates. Also stats for Santa Clara and San Mateo counties for last 24 months.  Stats for other areas are available upon request.

San Mateo County

last 24 months

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