Experts predict a gradual transformation in the San Francisco Bay Area housing market for 2025 and 2026, with an average home value currently at $1,140,718. A slight decline of about 1.7% in home prices is expected by October 2025, influenced by rising interest rates and economic uncertainty. While demand remains strong in tech-driven areas, affordability issues may limit growth. Emerging neighborhoods like Oakland and Richmond are gaining traction, and supply chain constraints are affecting new construction. Overall, a moderate correction is anticipated, not a crash.
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