Why Condo and Townhouse Sales Are Slowing Down in Fremont, CA — And What Needs to Change
- Sunil Sethi
- May 7
- 3 min read
It's Taking Longer to Sell
If you're trying to sell a condo or townhouse in Fremont, you may have noticed something frustrating — it’s taking more than twice as long to get an acceptable offer compared to just a year ago in April 2024. What’s changed in just 12 months? A lot.
Let’s take a closer look at what’s causing this slowdown and what needs to shift to bring buyers back to the condo and townhouse market in Fremont.
More than a 50% increase in the time to sell a unit because the supply of homes on the market has increased by 50% since April 2024.
Average $/Sqft has gone down from $745/Sqft in April 2024 to $712/sqft in April 2025.
Homes are selling for list price on average.
What's Causing Buyer's to Sit on the Sideline
1. Higher Interest Rates Are Shrinking Buying Power
Perhaps the biggest factor is rising mortgage interest rates. In early 2024, rates were already hovering above 6%, but many buyers still felt optimistic, believing that cuts were coming. Fast-forward to today, and the rate cuts haven’t materialized the way many expected. In fact, average 30-year mortgage rates are holding steady — or even ticking higher — making it harder for first-time buyers and move-down buyers to justify the cost.
Condos and townhouses are traditionally popular among those looking for entry-level or lower-maintenance housing. But when interest rates rise, the monthly payment on even a modestly priced condo can stretch beyond what many buyers are comfortable (or able) to pay.
2. Job Market Anxiety Is Slowing Commitments
Another factor chilling buyer enthusiasm is fear of job instability — especially in tech-centric areas like Fremont. While unemployment remains relatively low on paper, there’s a growing undercurrent of concern about layoffs, hiring freezes, and AI-driven restructurings. Even well-employed buyers are thinking twice before committing to a mortgage, especially in a market where appreciation isn’t guaranteed in the short term.
When buyers are nervous about their job prospects, they tend to delay big financial decisions — and home buying is at the top of that list.
3. General Market Uncertainty Creates Hesitation
We’re in a moment where many buyers — especially millennials and younger Gen Xers — feel stuck. They want to own, but they’re not sure this is the right time. Inflation, geopolitical tensions, and conflicting signals from the Federal Reserve have created a climate of uncertainty. Buyers are wondering: Will prices drop further? Will rates finally come down later this year? Should I wait for a better deal?
This uncertainty disproportionately affects condos and townhouses because they are often viewed as "starter" or transitional homes. Buyers feel less urgency to jump in — especially if they don’t perceive a significant long-term upside.
What Needs to Happen to Reignite the Market?
To bring buyers back into the Fremont condo and townhouse market, a few things need to change:
Interest rates need to come down — or at least show a reliable downward trend — to restore affordability and confidence.
Job security and market stability need to improve, especially in the tech sector. Local companies regaining hiring momentum could go a long way toward boosting buyer confidence.
Sellers and developers need to adjust expectations, offering competitive pricing and possibly incentives (like rate buydowns) to make ownership more accessible.
Additionally, Realtors and lenders must double down on buyer education. Many would-be homeowners don’t realize that the market slowdown actually presents an opportunity — less competition, more negotiation power, and the chance to refinance later if rates drop.
Final Thoughts
While the current slowdown in condo and townhouse sales may feel discouraging, it’s also part of a larger market adjustment. The fundamentals of Fremont — great schools, a strong tech presence, and strategic location — haven’t changed. When interest rates ease and buyer confidence returns, this segment of the market is likely to rebound. In the meantime, smart pricing, attractive financing options, and clear communication with buyers will be key to getting deals done.
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