Silicon Valley Real Estate Market June 2025

Tariff Driven Cost Increases

• Construction costs jump: Builders warn that tariffs on imported materials (like Canadian softwood, Chinese lumber, appliances) could raise the cost of a new home by $7,500–$10,900
• Limited inventory: Higher material costs are likely to slow new-homeconstruction, worsening California’s housing shortage

Mortgage Rate Effects

• Temporary rate dip: The economic uncertainty triggered by tariffs prompted investors to seek safe-haven Treasuries, lowering 30-year mortgage rates temporarily (e.g. from ~6.75% to ~6.55%)
• Volatility ahead: However, this dip may not last—any upward inflation from tariffs could push rates back up [ source: businessinsider.com ]

Jordan Levine’s Adjusted Forecast

Jordan Levine, the Chief Economist at the California Association of Realtors, has provided insights into the housing market forecast for 2025.

• Modest price growth: Despite headwinds from tariffs, Levine projects home prices still rising, thanks to enduring supply shortages, though costlier new build and construction delays may slow gains.
• Sales outlook cautious: Elevated costs and rate unpredictability could temper buyer demand and slow sales momentum in spring/summer.
• Inventory edges up: Levine expects slightly more listings in 2025, though tariff-driven construction delays may limit supply relief

Bay Area Housing Market

Summer tends to be a slower season for real estate, with homes taking longer to sell—though trends vary by neighborhood. Job stability and income continue to shape buying power and overall confidence. Still, real estate remains a long-term investment.

If you’re looking to buy but facing funding challenges, there are innovative options available. Some companies will co-invest with you by purchasing the land beneath the home, which you can lease and later buy back. This can reduce the upfront cost of a $3M home to closer to $2M, making certain neighborhoods more accessible.

If this could help make your homeownership dream possible in the area that’s best for you and your family, let’s talk. I’d be happy to share more details.

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.

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