February Market Deep Dive - Silicon Valley
Ascend RE February 20, 2025
Ascend RE February 20, 2025
The Local Lowdown
Quick Take:
Despite an incredibly strong year in terms of value appreciation, median sale prices in the month of January increased on a year-over-year basis in most of Silicon Valley.
Although a lot of new single family home inventory was added in Silicon Valley throughout January, total active inventory is still slightly trailing last year’s figures.
New listings continue to get snapped up incredibly quickly, as buyers are forced into fierce competition.
Single-family home prices continue to grow in the Silicon Valley
Silicon Valley remained resilient to high mortgage rates in 2024, with prices rising in Santa Clara (5.88%) and Santa Cruz (3.36%) but dipping in San Mateo (-2.44%) this January. Despite rate hikes, buyers remain active—further cuts in 2025 could fuel another price surge!
Condo inventory begins to build in Silicon Valley
Single-family home inventory in Silicon Valley is flat year-over-year, but condo inventory is rising, up 36.62% with new listings up 45.2%. Current levels match last April’s, signaling potential condo buying opportunities ahead!
A divergence in the time listings are spending on the market
Single-family homes are selling fast, averaging 14 days on the market in San Mateo, 12 in Santa Clara, and 32 in Santa Cruz—down 36.36% and 20% year-over-year in San Mateo and Santa Cruz. Meanwhile, condos are taking longer to sell, with market time up 12.9% in Santa Clara and 6.45% in Santa Cruz.
Sellers continue to have bargaining power in Silicon Valley
Months of Supply Inventory (MSI) defines market balance, with three months as California’s average. Below three months is a sellers’ market; above is a buyers’ market.Silicon Valley’s single-family home market favors sellers, with MSI at 1 (San Mateo), 0.7 (Santa Clara), and 2.3 (Santa Cruz). Condos are mixed—San Mateo (2.2) and Santa Clara (2) favor sellers, while Santa Cruz (3.7) leans toward buyers.
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