How’s the Market?" Why the Bay Area Real Estate Market Feels Schizophrenic Right Now

Last weekend at a party, everyone kept asking me the same question:
“Zaid, how’s the market?”
And my honest answer?
“Oh boy... it’s very schizo right now.”

That may sound dramatic, but if you’ve been watching the Bay Area real estate market lately, you know exactly what I mean. In one zip code, homes are flying off the shelves with 16 offers and $300K over asking. Just a few miles away? A well-priced starter home can sit for weeks without a single offer.

Let’s unpack this “split personality” market and what it means if you’re thinking about buying or selling in Silicon Valley.

📈 Active Listings: Inventory Is Holding Steady, But Behavior Isn’t

Right now, we’re seeing 1,149 total active listings in San Jose, split about 50/50 between single-family homes and condos/townhomes. The kicker? Only half of those are moving.

Single-family homes—especially those near major job hubs like Cupertino, Sunnyvale, and Mountain View—are getting strong activity and selling quickly.

But in areas like South San Jose, where you’d expect buyers to flood in for more affordability and good schools, things are oddly quiet. Inventory is available. Prices are fair. Yet buyers are hesitating.

🤔 Two Houses, Two Stories

To really illustrate how “schizo” this market feels:

• One home received 16 offers and sold $300K over asking

• Another—an entry-level home in a good area priced at $1.35M—has sat on the market for 2+ weeks with no offers

It’s not about quality or price. It’s about buyer confidence.

💸 Buyers Have Money. So Why Aren’t They Buying?

It’s not down payments holding them back. We’re seeing buyers whose RSUs have vested, whose net worth is strong, and who have already gone through the mortgage pre-approval process.

Interest rates? Still hovering around 6%, and even lower with relationship discounts.

So what's the real issue?

Sentiment.

Many buyers are wondering:
"What if prices dip further?"
"What if I buy now and regret it later?"

That fear is causing hesitation—even among those who are financially ready.

🧠 The Psychology of the Market

What we’re witnessing is a classic tug-of-war between buyer hesitation and seller resistance. Sellers, unwilling to accept lower offers, are pulling their homes off the market. Meanwhile, cautious buyers are waiting for prices to drop… but inventory will likely start to shrink again after August, creating another wave of competition and FOMO (fear of missing out).

🏡 Is Now a Good Time to Buy?

If you're a strategic buyer, this might be your moment.

Homes are sitting longer. Sellers are more negotiable. And competition is lighter—for now. If you want to secure a great home at a fair price before the fall rush, now’s the time to act.

Need insight into a specific neighborhood?
Let’s talk about what’s happening in your desired pocket.

📞 Call us at 408-515-1613 — we’ll help you take advantage of this rare market moment.

🔑 Key Takeaways:

• 1,149 active listings in San Jose — half are single-family homes

• Homes closer to tech hubs are moving fast; others are sitting

• Buyers are financially ready but emotionally cautious

• Interest rates remain stable around 6%

• Sentiment, not affordability, is holding back the market

• Fall inventory drop could trigger another buyer surge