The volatile housing market in the Bay Area continues to stir debate among experts, with Zillow projecting a steep decline in home values for San Jose over the next year, while local real estate agents maintain bullish expectations. The San Francisco Chronicle reports that Zillow sees the average home value in the San Jose metro area, which includes locales such as Palo Alto and San Benito County, to tumble from $1.46 million in November 2023 to $1.37 million by November 2024, predicting the most significant drop across the country's major metros at 6.1%.

Contrasting Zillow's forecast, local real estate agents highlight a robust demand that defies the anticipated downturn, Nicole Bachaud, senior economist at Zillow argued mortgage rates are too high and will push prospective buyers away, Sandy Jamison of the San Jose-based Jamison Team expressed confidence in the area's real estate market, stating, "We’ve always had so much demand in the Bay Area and in San Jose," she told The San Francisco Chronicle. "Because there’s so much population, there’s enough buyers to absorb the limited inventory." Real estate broker Nikki Edwards from EQ1 Real Estate echoed this sentiment, pointing to the unwavering demand among tech workers, many of whom continue to afford high prices as they return to office work.

Meanwhile, San Francisco's real estate landscape doesn't look much rosier according to Zillow data, with average home values there falling 6.4% to $1,234,246 over the past year and houses going to pending in about 23 days, as shown by a Zillow listing. Zillow’s data reflects this downward trend, placing additional weight on projections of a slowing market.

In stark contrast, the San Jose housing market has witnessed a 5.3% rise over the past year, with the average home value currently standing at $1,316,960, homes are briskly moving to pending status in around 13 days—indicating a sharp market snapback despite the dire forecasts floating around, Zillow's records indicate Zillow’s figures remain an integral point of contention in shaping public perception and real estate sentiment in the Bay Area.