For years, sellers have had the upper hand in the housing market. With so few homes for sale and so many people who wanted to purchase them, buyers faced tough competition just to get an offer accepted. Lately, there’s been growing buzz about rising inventory—potentially signaling the beginning of a market shift in several areas.
While it’s still a seller’s market in many places, buyers in certain locations have more leverage than they’ve had in years. And that’s thanks to how much inventory has grown lately. As Lance Lambert, Co-Founder of ResiClub, explains:
“Among the nation’s 200 largest metro area housing markets, 41 markets ended January 2025 with more active homes for sale than they had in pre-pandemic January 2019. These are the places where homebuyers will be able to find the most leverage or market balance in 2025.”
Unfortunately, this hasn’t reached Silicon Valley—yet. News reports often focus on the broader economy, using national or statewide statistics, but they rarely capture the unique dynamics of our local market. Could the broader country be a sign of things to come in our area?
Silicon Valley’s housing supply is notoriously constrained compared to much of the country and state. With limited available land, highly restrictive zoning regulations and lengthy approval process for developments, the region struggles to keep up with demand. This persistent supply shortage in Silicon Valley creates intense competition among buyers. Nevertheless some analysts anticipate a shift towards a more balanced market in Silicon Valley, with a gentle easing of price growth rather than a dramatic drop. That remains to be seen; thus far, our available inventory remains as restrictive as it has been. See the graph below (representing San Mateo County)
As always, competing in this type of market, whether you are a seller or buyer, requires partnering with a Real Estate team that deeply understands local market trends, has strong negotiation skills, and can strategically position you for success. Experience and insight makes a difference. Give us a call today.