Northern California Housing Market Shows Earlier Recovery Signs Than Southern California Metros, New Study Finds

Northern California’s housing market is showing stronger early signs of recovery compared to Southern California, with some parts of the Bay Area seeing stronger buyer competition, a recent study has revealed.

According to Zillow’s April 2026 market report, new listings nationwide grew faster year-over-year than home sales, with active inventory increasing by 3.7% from April 2025.

While the housing market’s recovery in April is more of a divided scenario in California, the northern part of the state, especially San Francisco and the nearby markets in the Bay Area, showed more resilience than Southern California metros.

Housing Market Recovery in Northern California

According to Zillow, some cities in Northern California recorded the highest monthly appreciation of home values compared to their Southern California counterparts…

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