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.
