Bay Area Housing Market Update for June–July 2025

The Bay Area real estate market continues to show important shifts in 2025. While interest rates remain high and affordability is a concern for many buyers, inventory has been building, overbidding has cooled, and price reductions are more common than a year ago. At the same time, long-term appreciation continues to highlight the strength of homeownership in the region.

Below is a summary of the latest market data across San Mateo, Santa Clara, and Alameda Counties.

General Market Trends

• Interest rates remain near 20-year highs, reducing affordability.

• Home sales typically bottom in winter and peak in spring and summer.

Appreciation

Short-Term (July 2025 vs July 2024):

• San Mateo: –4% for single-family homes; –6% for condos/townhomes.

• Santa Clara: –3% for single-family homes; –5% for condos/townhomes.

• Alameda: –5% for single-family homes; –7% for condos/townhomes.

Long-Term (2014 → 2025):

• San Mateo: +74% for single-family homes; +58% for condos/townhomes.

• Santa Clara: +88% for single-family homes; +62% for condos/townhomes.

• Alameda: +67% for single-family homes; +50% for condos/townhomes.

Sales Volume (July 2025 vs July 2024)

• San Mateo: –12%.

• Santa Clara: –10%.

• Alameda: –14.5%.

New Listings (July 2025 vs July 2024)

• San Mateo: +8%.

• Santa Clara: +10%.

• Alameda: +12%.

Active Listings (July 2025 vs July 2024)

• San Mateo: +15%.

• Santa Clara: +18%.

• Alameda: +20%.

Listings Accepting Offers (July 2025 vs July 2024)

• San Mateo: –9%.

• Santa Clara: –11%.

• Alameda: –13%.

Price Reductions (July 2025 vs July 2024)

• San Mateo: +25%.

• Santa Clara: +30%.

• Alameda: +50%.

Overbidding (July 2025 vs July 2024)

• San Mateo: 65% to 45% homes sold over list (–20 points).

• Santa Clara: 67% to 46% homes sold over list (–21 points).

• Alameda: 64% to 40% homes sold over list (–24 points).

Sales Price to List Price Ratio (July 2025 vs July 2024)

• San Mateo: 103% to 99%.

• Santa Clara: 104% to 99%.

• Alameda: 103% to 98.5%.

Days on Market (July 2025 vs July 2024)

• San Mateo: 19 to 26 days (+7).

• Santa Clara: 18 to 25 days (+7).

• Alameda: 15 to 23 days (+8).

Key Takeaways

• Inventory is up across all three counties compared to last year.

• Sales volumes are down, showing reduced buyer activity under current interest rates.

• Price reductions and longer days on market reflect more negotiation room for buyers.

• Despite the short-term cooling, long-term appreciation over the last decade remains strong, with home values rising 50–88% since 2014.