“How’s the Market?” Let’s Talk Housing, Stocks & Strawberries – Bay Area Edition, Mid-2025
If you’re in real estate—or frankly, just live in the Bay Area—you’ve likely heard this question a hundred times: “How’s the market?”
And while most people mean the housing market, I thought I’d have a little fun with it this time around. Because in a place like Palo Alto, Menlo Park, or Los Altos, “the market” can mean a few different things. So here’s your Q2 2025 snapshot—housing, stocks, and even strawberries.
The Farmer’s Market: Getting Stronger This Time Of Year
I am a huge fan of the Downtown Palo Alto Farmer’s Market on Saturdays. This time of year the market starts to come out of its winter phase (aka no flowers!) with more and more vendors coming back and bringing their exceptional produce and products. A hit list of my favorite vendors, both for their produce and personalities: Full Belly Farms, Triple Delight Blueberries, Allied Arts Apiary, and I can not wait for Blue Heron Farms to show up with their amazing flower bouquets!
The California Avenue Farmer’s Market in Palo Alto, is amazing, but put your walking shoes on as there are A LOT of vendors. If you want to make more of a morning of going to the market, this is the one to go to. Followed up with lunch at one of my favorite spots, Terun Pizzeria!
Much like real estate, it’s all about timing. Right now? We’re in peak cherry, blueberry, and strawberry season, not to mention the flower choices are about to be abundant!
Not near Palo Alto, MerciSF has put together an excellent list of the area markets, so check them out!
The Stock Market: Just Stressful
The numbers go up, the numbers go down in what feels like a matter of minutes. The market is trying to figure out the impact of tariffs, waiting for a budget bill aka “the big beautiful bill” to be passed, will we go into a recession (we keep hearing we are on the brink!), and rising bond yields just to highlight a few of the swirling topics. It’s emotional and exhausting!
Specifically, in May 2025, IPOs are starting to stir (hello, liquidity events)! The hope of 2025 remains that M&A and IPOs will start churning again after five years, and that this frenzied market doesn’t completely stall the momentum forward.
Why does this matter to housing? Because, liquidity events means an inflow of wealth that can be used to fund real estate investment, and confidence in the stock market often translates to confidence in real estate, especially in tech hubs like ours, where bonuses and RSUs (Restricted Stock Units) fund down payments.
If you want to hear and learn from a real insider taking it a step way beyond mainstream media investing advice, subscribe to Fundstrat’s Youtube Channel, which boasts commentary from their head of research Tom Lee.
The Housing Market: Still Competitive, But Calmer
And now, the main event: the Bay Area housing market.
Across Palo Alto, Menlo Park, Los Altos, Los Altos Hills, Atherton, and Redwood City, we’re seeing a shift. After years of frenetic bidding wars and pandemic-era extremes, Q1 and Q2 of 2025 are shaping up to be more balanced.
- Inventory is slowly increasing, giving buyers more breathing room.
- A point to note, the condominium market is depressed, having been impacted by SB-326 a California bill that requires inspection and if needed, repairs of balconies. Lack of compliance with SB-326 = Not meeting Fannie Mae and Freddie Mac’s lending guidelines = Very, very difficult to get a loan, if you can get one at all.
- Interest rates have come in a bit and we are now more conditioned to the higher rates. There is an anticipation of one rate cut this year, which is a good thing for rates, but no one knows when that will be – the latest guess is July 2025.
- Sellers are adjusting expectations but still commanding strong prices, especially for turnkey, well-located homes.
Atherton and Los Altos Hills remain luxury strongholds, but there is solid activity across price points in Redwood City and Menlo Park as well.
The takeaway? It’s still a seller’s market in many zip codes, but savvy buyers are finding opportunities, especially when paired with strategic local expertise (hint, hint).
So… How’s the Market?
It depends on which one you mean.
The strawberries are sweet.
The stock market is on a rollercoaster ride.
And the housing market? It’s still moving—just a little more thoughtfully than before.
If you’re thinking about making a move this season (real estate, not just produce), let’s talk.
Opinions and views are my own. The content in this post is for informational purposes only. Do not rely on this information for financial and/ or legal advice or to make any decisions about your financial and/or legal situation. Seek professional counsel for your specific needs.