What to Expect From the Bay Area Home Prices Through 2026 | A Real Estate Professional serving Silicon Valley since 1993

The Bay Area housing market is forecast to experience moderate price declines through mid-2026, with home values expected to fall up to 6% before stabilizing.
The San Francisco–Oakland–Hayward metro is projected to see the sharpest corrections among major California cities, though not a full downturn.
By late 2026, experts anticipate a gradual rebound driven by improved affordability and easing mortgage rates.
National forecasts suggest home sales could rise in 2026 as rates trend toward 6%, supporting renewed buyer activity in high-cost regions like the Bay Area.
Overall, the 2025–2026 outlook points to a cooling phase followed by steady recovery, marking a shift toward a more sustainable and balanced market.