March '25 Market Deep Dive

The Local Lowdown

Quick Take:

San Mateo and Santa Clara continue to see incredibly strong growth in median sale price, while Santa Cruz remains mostly flat when compared to this time last year.
Inventories are beginning to build in Silicon Valley, with the number of active listings increasing by more than 16% when compared to last year!
New listings continue to be scooped up at an incredibly rapid pace, with the average listing in Santa Clara sitting on the market for just 8 days.

San Mateo and Santa Clara Counties see incredibly strong growth

In 2024, Silicon Valley remained resilient despite rising mortgage rates, a trend that continues this year. San Mateo and Santa Clara Counties saw strong year-over-year growth of 11.17% and 10.42%, respectively. While Santa Cruz's market is slower, it remains stable with a 1.42% increase in median sale prices.

Inventories are increasing in terms of both single-family homes and condos

Despite rising home prices, Silicon Valley's inventory is growing—up 19.66% last month and 16.73% year over year. However, February saw 2.34% fewer sales than last year. A rebound in sales will be key to sustaining the market’s strong growth.

Despite growing inventories, buyers are closing on new listings faster than ever

Even with increasing inventory and fewer sales, homes are selling quickly—spending an average of just 10 days on the market in San Mateo County and 8 days in Santa Clara County. Demand for quality properties remains strong.

Sellers continue to have bargaining power in Silicon Valley

Market conditions are measured by Months of Supply Inventory (MSI). California’s average of three months indicates a balanced market—below favors sellers, above favors buyers.

San Mateo (1.2 MSI), Santa Clara (1 MSI), and Santa Cruz (2.5 MSI) are strong sellers’ markets for single-family homes. Condos are more balanced, with 3 MSI in San Mateo and 3.5 MSI in Santa Cruz, offering some opportunity for buyers. However, Santa Clara’s condo market (2.2 MSI) still favors sellers.

Bottom Line

Silicon Valley’s housing market remains strong, with San Mateo and Santa Clara Counties seeing double-digit price growth despite rising mortgage rates. Inventory is increasing—up 19.66% last month and 16.73% year over year—but sales dipped 2.34% from last year. Even with more listings, homes are selling quickly, averaging just 10 days on the market in San Mateo and 8 in Santa Clara. Sellers still hold the advantage, with MSI at 1.2 in San Mateo and 1 in Santa Clara, while Santa Cruz (2.5 MSI) is more balanced. Condos offer slightly more opportunity for buyers, except in Santa Clara, where they still favor sellers.

Line chart comparing three-year median single-family home prices in San Mateo, Santa Clara, and Santa Cruz.