April '25 Deep Dive - Silicon Valley

The Local Lowdown

Quick Take:

The entire Silicon Valley continues to be a hotspot for growth, as home values continue to increase at a rapid rate.
Despite strong trends in median sales prices, inventory continues to build, as tons of new listings hit the market.
New listings are still being bought up at an incredibly fast rate, considering the amount of inventory that has built up over the past couple of months.

Silicon Valley homes continue to be a great investment for owners

Silicon Valley has consistently proven to be a strong market for both homeowners and real estate investors, thanks to steady annual appreciation. So far in 2025, that trend is continuing. In March, the median sale price for homes rose 3.75% year-over-year in San Mateo, 7.27% in Santa Cruz, and an impressive 11.58% in Santa Clara. Notably, Santa Clara’s jump followed a 10.28% increase in February, highlighting the area's continued momentum.

Inventory is continuing to build throughout the Silicon Valley

With prices rising across Silicon Valley, it’s natural to wonder if inventory shortages might be on the way. Surprisingly, that’s not what we’re seeing. In March, single-family home inventory jumped by 40.05%, driven by a 23.83% increase in new listings compared to the same time last year. The number of homes sold remained steady, but as inventory continues to rise, it's worth watching—if supply outpaces demand, we could start to see downward pressure on prices.

Despite high inventory levels, buyers are eager to purchase homes

The good news for sellers is that buyer demand remains strong—homes aren’t sitting on the market any longer than they were this time last year. In fact, new listings are being scooped up quickly. On average, homes in Santa Cruz last just 16 days on the market, while those in San Mateo and Santa Clara are selling even faster, averaging only 10 and 8 days, respectively. This suggests that buyers remain highly motivated and eager to secure properties in the region.

Single-family homes remain a hot commodity, but condos… not so much!

To gauge whether a market favors buyers or sellers, we often turn to the Months of Supply Inventory (MSI) metric. Historically, California averages around three months of MSI, which indicates a balanced market. Markets with less than three months are considered seller-friendly, while those with more are buyer-friendly.

Currently, the single-family home market in Santa Cruz is balanced with exactly 3 months of supply. In contrast, San Mateo and Santa Clara counties have just 1.5 and 1.3 months of supply, respectively—putting buyers at a disadvantage. The condo market, however, tells a different story: with 2.8 months of supply in Santa Clara, 3.4 in San Mateo, and 4.4 in Santa Cruz, it's much more balanced overall, with the latter two counties leaning toward buyers' favor.

Bottom Line

Silicon Valley continues to be a strong market for homeowners and investors, with home prices steadily rising in 2025—especially in Santa Clara, where values saw double-digit growth. Despite rising prices, inventory is also increasing, with a 40% jump in single-family home supply driven by a surge in new listings. Still, buyer demand remains high, as homes are selling quickly across the region. While the single-family home market largely favors sellers, the condo market is more balanced, with some areas even leaning toward buyers.

Line chart comparing monthly condo days on market in San Mateo, Santa Clara, and Santa Cruz, March 2023–March 2025.