T
he Bay Area's housing market is showing signs of a shift, with rising home prices and ebbing mortgage rates. According to Zillow data, ZIP codes in the East Bay and Silicon Valley are experiencing significant increases in home values. Fremont, in particular, has seen rapid growth, driven by its desirable schools, suburban lifestyle, and proximity to tech hubs.

    Fremont's 94538 ZIP code saw a 9% increase in estimated home values to nearly $1.4 million between January and August. Other Fremont ZIP codes also experienced significant gains, including 94536 (up 8.6%), 94539 (up 8.3%), and 94555 (up 8.2%). Nearby Newark's 94560 and Union City's 94587 also saw notable increases.

    San Jose had five ZIP codes among the top 15 fastest-rising areas, including 95132, which rose 7% to $1.6 million. Livermore's 94550 and Milpitas' 95035 also made the list, with smaller but still significant gains. However, not all Bay Area ZIP codes are experiencing growth; Oakland's typical home value continued its slow decline, while several of its neighborhoods saw drops in home values.

    The Zillow estimates contrast with figures from the California Association of Realtors, which showed overall prices across the Bay Area fell for the first time in 13 months. The median sale price of a single-family home in the nine-county region dropped 1.6% to $1.24 million year-over-year. Mortgage rates have also fallen, with the rate for a 30-year fixed mortgage hitting 6.09% in mid-September from a high of 7.22% in May.