![Line graph showing median home prices from January to [current month] 2025 in San Francisco, San Mateo, and Santa Clara Counties. Prices rose through spring in all three counties, with fluctuations reflecting market activity.](http://agemhome.com/wp-content/uploads/2025/07/median-home-prices-scaled.png)
The spring 2025 selling season—typically the most active time of year for San Mateo and Santa Clara Counties—was noticeably softer than usual, largely due to persistent economic volatility and the lack of meaningful mortgage rate relief.
Overall sales activity weakened year-over-year, reflecting buyers’ cautious approach amid high rates and uncertainty. However, this wasn’t the full story.
Strength at the Top End of the Market
Despite a slower market overall, many homes still sold quickly and well above asking price—especially in more affluent neighborhoods. The luxury segment remained exceptionally strong, with $5M+ home sales hitting their highest level since the pandemic boom, fueled in part by the ongoing AI industry surge.
Higher-end markets continued to outperform lower-priced segments, with competition strongest for move-in-ready homes in prime locations.
Price Trends
- In San Mateo and Santa Clara Counties, the median house price dipped slightly year-over-year, though several city submarkets saw price increases.
- In San Francisco, the median price for both houses and condos hit their highest levels since the pandemic peak.
- Rental prices in San Francisco also climbed to their highest point since 2020.
A More Optimistic Outlook
As of early July, key economic indicators are turning more positive:
– Economic uncertainty is easing
– Stock markets hit new highs
– Consumer confidence is rebounding
– Interest rates are beginning to decline
If these trends continue, they could set the stage for a stronger housing market in the second half of 2025.
🔑 For Sellers:
Well-priced, professionally presented homes continue to attract strong interest. Correct pricing, staging, and marketing remain critical to maximizing results in this more selective market.
🔎 For Buyers:
Opportunities still exist—especially among older listings or homes needing a little work. Buyers who monitor the market closely, track price reductions and time-on-market, and are prepared to act decisively can still find strong value.
Thinking of buying or selling this year? Let’s connect for a personalized strategy.
Whether you’re upgrading, downsizing, or just exploring options, I’m here to guide you through the changing market with clarity and confidence.
