T
he Bay Area housing market remains robust, despite a stagnant national real estate market. In Silicon Valley, specifically San Francisco and San Jose, the median home price is out of reach for many buyers, requiring an annual income of $263,000 in San Francisco and $370,000 in San Jose to afford a median-priced home.

    A recent surge in foreign investors has added competition to the market. According to the National Association of REALTORS, international buyers purchased 78,100 properties across the US from April 2024 to March 2025, spending $56 billion, a 44% annual increase. China is the leading source of foreign buyers, with 15% investing in California, followed by Canada and Mexico.

    Chinese homebuyers are attracted to California due to its proximity to China and business opportunities. Mark Wong, an agent with Compass Real Estate, notes that Chinese buyers want to own both the house and the land, which is not possible in their native country. However, tech money still dominates the market, with many cash buyers from the sector able to purchase homes quickly.

    In Silicon Valley, houses are selling rapidly, often within one or two weeks, due to strong demand for properties with good schools and proximity to work. According to Jimmy Wong, Mark's son and real estate partner, location is key in the competitive Bay Area market.