Greater Bay Area Market Update
May 2026 · SALA Homes Realty & Development
Stay informed and ahead of the curve. From interest rate shifts to inventory changes, we break down what it all means for you. Let's navigate the market together, one smart move at a time.
The Big Story
Quick Take: National Market Snapshot
Prices Bounce Back
Median home sale prices rose nearly 1% year-over-year in April as spring selling season kicked into gear.
Inventory Climbing
New listings are flooding the market as sellers capitalize on the busier spring months.
Sales Flat
Existing home sales are essentially flat year-over-year as rising mortgage rates give buyers reason to pause.
*National Association of REALTORS® data is released two months behind; recent months are estimated when appropriate.
National Trends
Median Sale Prices & Mortgage Rates
The median home sold for $417,700 in April — up 2.10% month-over-month and 0.89% year-over-year. Prices had declined from June 2025 through January 2026 (bottoming at $395,000) but have risen for three consecutive months.
The 30-year mortgage rate climbed to 6.46% in April from a 6.00% low in March, pushing the median monthly P&I payment to $2,115 — still 3.07% lower than last year's $2,182.
National Trends
Inventory Surge & Sales Activity
New Listings
April saw 477,116 new listings nationwide — up 8.70% month-over-month and 1.13% year-over-year. Total inventory reached 1,470,000 homes, a 5.76% MoM and 1.38% YoY increase, approaching peak summer 2025 levels.
Existing Sales
4,020,000 homes sold in April — just a 0.50% YoY and 0.25% MoM increase. Buyers remain cautious as rates climbed from 6.00% in March to 6.46% in April.
The Local Lowdown
Bay Area Market at a Glance
San Francisco Leads
Double-digit price appreciation in both single-family homes (+21.43% YoY to $2,125,000) and condos (+18.14% to $1,400,000).
Inventory Shortage
Inventory remains well below last year across the entire region — declines range from 12% in Silicon Valley to nearly 40% in San Francisco.
Lightning-Fast Sales
Single-family homes are selling in days: Santa Clara County in just 9 days; San Francisco homes routinely sell 20%+ over asking.
Condo Market Divide
The condo market has become a buyer's market in several East Bay and North Bay counties, contrasting sharply with the competitive single-family market.
Local Lowdown
Price Performance by Region
San Francisco
Single-family homes: $2,125,000 (+21.43% YoY)
Condos: $1,400,000 (+18.14% YoY)
Homes routinely sell 20%+ over asking price.
Condos: $1,400,000 (+18.14% YoY)
Homes routinely sell 20%+ over asking price.
Silicon Valley
San Mateo single-family: $2,167,500 (+2.19% YoY)
Santa Clara: $2,100,000 (steady)
Santa Cruz: $1,342,500 (+5.29% YoY)
Santa Clara: $2,100,000 (steady)
Santa Cruz: $1,342,500 (+5.29% YoY)
North Bay
Marin County: +4.38% YoY
Sonoma County: +2.35% YoY
Napa and Solano Counties continue to soften.
Sonoma County: +2.35% YoY
Napa and Solano Counties continue to soften.
East Bay
Alameda County: −2.44% YoY
Contra Costa County: −1.71% YoY
Contra Costa County: −1.71% YoY
The condo market is a tale of two worlds: SF condos command ~7% over asking, while Alameda County condos declined 10.38% YoY.
Local Lowdown
Inventory: A Persistent Shortage
Despite peak spring season, Bay Area inventory remains stubbornly below last year. San Francisco is most constrained: single-family inventory down 36.99%, condo inventory down 39.01% — fewer than 700 homes available citywide.
North Bay single-family inventory is down 36.98%; East Bay down 25.23%; Silicon Valley down 12.03%. North Bay single-family sales are up 9.01% YoY, underscoring how quickly supply is absorbed.
Local Lowdown
Days on Market: Speed of Sales
Single-Family Homes
Sales pace remains exceptional across the Bay Area:
- Santa Clara County: 9 days
- San Mateo County: 11 days
- San Francisco: 12 days
- Marin County: 13 days
- Alameda & Contra Costa: 13 days
- Sonoma & Solano: 26 days
Condos: A Mixed Picture
San Francisco condos now sell in just 14 days — down from 33 days last April, a 57.58% improvement. However, Santa Clara County condos are spending 46.67% more time on market than last year, and San Mateo County is up 13.64%. Santa Cruz County is the lone bright spot outside SF, improving 3.33% YoY.
Local Lowdown
Months of Supply: Who Holds the Leverage?
California historically averages ~3 months MSI. Below 3 = seller's market; above 3 = buyer's market.
Single-Family: Seller's Market
Every Bay Area county is firmly in seller's territory:
- San Francisco: 1.1 months
- San Mateo: 1.4 months
- Santa Clara: 1.8 months
- Alameda: 1.8 months
- Contra Costa: 2.1 months
- Marin: 2.2 months
- Solano: 2.6 months
- Sonoma: 2.8 months
- Santa Cruz: 2.9 months
Napa is the lone outlier at 6 months — still a 33.33% YoY decline.
Condos: Buyers Gaining Ground
Several areas have shifted to buyer's markets:
- Alameda: 4.3 months
- Contra Costa: 4.1 months
- Santa Cruz: 4.5 months
- Santa Clara: 4.0 months
- Napa: 5.6 months
San Francisco bucks the trend entirely — transformed from a buyer's market (4.4 months) last April to a strong seller's market at just 2.3 months today.
Let's Navigate the Market Together
Whether you're buying, selling, or simply keeping an eye on the market, SALA Homes is here to guide you with clarity and confidence. One smart move at a time.
Sunnie Li
Affiliate Broker, Top Producer
DRE #02019805 NMLS #1844121
Mobile: 650-797-4808
Email: [email protected]
Address: 385 Homer Ave, Palo Alto, CA 94301
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