Silicon Valley Real Estate Market Update â May 2025 | The Keith Walker Team
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Iâm Keith Walker, and my goal is to help you cut through the noise and understand whatâs really happening in todayâs Silicon Valley real estate market.
Whether youâre a buyer, seller, or simply keeping an eye on trends, hereâs what you need to know.
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Despite global headlines about elevated rates, tariffs, and economic concerns, the local data in Silicon Valley remains strong and healthy.
Hereâs whatâs really happening:
Mortgage purchase applications are surgingâup double digits year over year in the past two weeks.
The stock market is bouncing back, boosting buyer confidence and down payments.
New construction permits are slowing, reducing future competition for existing homes.
Active inventory is growing, giving buyers more choiceâwithout a flood of panicked sellers.
Price growth is moderating, which helps maintain a sustainable market and avoid corrections.
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Hereâs how the numbers stack up for May 2025:
Inventory: Up 2.1%, mainly in the condo and townhome market.
Pending Sales: Up 3.7% overall
Single-family homes: +6%
Condos/townhomes: -1.3%
Average Days on Market: Steady at 14 daysâstill moving fast.
Single-Family Home Prices: Averaging $2,458,565 and still appreciating.
Townhome & Condo Prices: Down for the second month, but up since January.
No doom and gloomâjust balanced market data.
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Usually, by this point in the year, weâd see sales peak and activity start to drop. Not in 2025.
This year, the buying season is stretching longer, with homeowners in no rush to sell (thanks to low rates and high equity).
Rates remain stable, with the Fed holding steady for three straight meetingsâsignaling stability rather than uncertainty.
Tariff headlines have had little real impact locally.
Even if thereâs economic softness, lower rates would bring buyers off the sidelinesâmeaning more competition and likely higher home prices.
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For Buyers:
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This is your moment.
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Less competition, more choices, steady prices, and stable rates.
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If rates drop later, you can always refinance. If prices rise, youâll wish you bought today.
Donât expect a Silicon Valley âcrashââthereâs no data supporting it. This is a chance to buy smart, without bidding wars.
For Sellers:
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No panic needed.
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Focus on pricing it right and making your home shine.
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Expect steady offersânot frenzied multiple bids.
If youâre not seeing offers, itâs usually about presentation or pricingânot the market.
Donât be surprised if the spring market rolls right into the summer and fall this year.
More fresh inventory and more sales numbers ahead.
Weâve seen it before in this valleyâand it pays to be ready.
Have questions or want to dig into the data for your neighborhood? Reach outâIâm here to help.
đ© Drop your questions below, subscribe for updates, or contact me directly.
Iâm Keith Walkerâhere to educate and navigate, not speculate and fabricate.
Letâs make smart moves together!