The Bay Area housing market continues to evolve, driven by low inventory, strong buyer demand, and stabilizing mortgage rates. Here's a closer look at the key numbers and trends shaping the market:
Interest Rates
Mortgage rates stabilized at 6.91% in early January 2025 after peaking at 7.8% in 2024. This provides more predictable conditions for buyers.
Median Home Prices – Houses
- San Mateo: $1.98M
- Santa Clara: $1.9M
These prices reflect the high demand and limited supply of homes in these areas.
Price Per Square Foot Trends
- San Mateo: $1,157/sq. ft.
- Santa Clara: $1,109/sq. ft.
Both counties maintain some of the highest price-per-square-foot values in the region.
Inventory Levels
New listings remain historically low, with a slight increase in 2024:
- San Mateo: 5,999 listings (up 10.5% from 2023)
- Santa Clara: 14,905 listings (up 22% from 2023)
Overbidding Activity
Buyers continue to compete fiercely with:
- 59% of San Mateo homes selling over the asking price
- 67% of Santa Clara homes selling over the asking price
Appreciation Rates
Home values grew significantly in 2024, with year-over-year appreciation at 9% for both counties. These gains highlight the resilience of the Bay Area market.
Median Sales Prices in Each County
Conclusion:
The Bay Area real estate market continues demonstrating strength and resilience, with rising home values, stable interest rates, and strong buyer demand. Despite low inventory and competitive conditions, opportunities abound for those looking to buy, sell, or invest in 2025. Understanding the trends, from appreciation rates to overbidding activity, is key to making informed decisions in this dynamic market.
