Silicon Valley Real Estate Market December 2025 Market Volatility & Housing Affordability First came tariffs, then the extended government shutdown—each event dampened real estate market confidence. In response to ongoing affordability challenges, headlines about 50-year mortgages have recently gained attention as a supposed solution. But a 50-year mortgage is a false fix. The core housing problem is not lack of demand—it’s lack of supply. • This is not a demand issue; buyer demand remains strong. • The median age of a homebuyer is around 40. Adding a 50-year mortgage term simply doesn’t align with realistic life or retirement timelines. Jobs, Migration, and Regional Resilience Despite concerns about AI and job displacement, Silicon Valley is likely to be the last region impacted, given its concentration of innovation and high-skill employment. Any outward migration would likely occur later rather than sooner. Price Trends & Inventory Outlook • In 2022–2023, as the market emerged from COVID, home prices surged to extreme levels. • By 2025, inventory was expected to rise in much of the country. Inventory did increase. Except in the Upper Midwest, New York, New England, and the West Coast. • In 2026, some regions may experience flat or even negative price growth, though this is unlikely in the Bay Area. • Ultra-luxury markets such as Aspen and New York continue to behave differently due to global wealth concentration. New California Disclosure Law on Edited Listing Photos AB 723 — Effective January 1, 2026 California has passed a landmark regulation requiring transparency when listing photos are digitally altered—currently the most concrete new rule of its kind in the U.S. Who it applies to: • Licensed real estate brokers and salespersons, as well as anyone acting on their behalf. What must be disclosed: • If listing photos are digitally altered—using photo-editing software or AI—to add, remove, or materially change real elements of a property, the listing must clearly disclose that the image has been altered. Resources Available Compass remain the strong #1 leader in real estate locally and nationally. If you have any questions or need real estate resources nation wide, I am happy to help. Please feel free to reach out. Our goal is to bring genuine care, outstanding real estate services, and significant value, in order to positively impact our communities and clients.   Below also are the market data, and stats for the last 24 months in Santa Clara and San Mateo counties. Stats in other areas are available upon request.

Santa Clara County

last 24 months

San Mateo County

last 24 months