Bay Area home values are forecasted to decline moderately through mid-2026, with San Francisco seeing the steepest drops. Despite a regional sales dip, median prices in some counties like Marin and Santa Clara rose, reflecting uneven market dynamics. Lower mortgage rates have improved affordability, boosting pending sales. Inventory is slowly increasing, and homes take longer to sell. The market is balancing, favoring informed buyers and realistic sellers amid ongoing economic strength and housing supply constraints.