"Both sales and prices will increase in 2026, forecasts Jordan Levine, chief economist for the California Association of Realtors, though growth will be modest. However, he warns that uncertainty will persist throughout the year. "I wish I knew what the sources would be, but I do expect more curveballs, from policy and geopolitics ... wildfire season," he said during a phone call with SFGATE. Levine's advice to prospective buyers is to look at the long-term picture rather than day-to-day headlines."
"While interest rates have been gradually declining, Levine noted that the improvement is happening slowly. Still, the reduction in rates is giving some buyers, particularly at the entry level, additional purchasing power. Job loss and an uneven surge The Bay Area itself is at an economic intersection. Despite being a hotbed of much-hyped artificial intelligence technology and the frequently cited boom it created, there have been modest job declines compared with jobs created. Statewide, job growth has been relatively flat."
The Bay Area housing market is expected to see modest increases in sales and prices in 2026 amid persistent affordability challenges and economic volatility. Gradually declining interest rates are slowly improving purchasing power for some entry-level buyers. Job growth across the state remains relatively flat while local job losses have occurred as some businesses substitute labor with AI technologies. The luxury segment is outperforming the broader market, with San Francisco activity notably strong since the fall selling season. Shifts in inventory, pricing, and buyer behavior are creating both opportunities and obstacles. Continued uncertainty from policy, geopolitics, and wildfire risk may produce further curveballs.
Read at SFGATE
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