Quick take: Economic volatility has eased since spring. Stocks hit new highs, consumer confidence is improving, and mortgage rates dipped to a 2025 low—all of which could set up a steadier second half of the year. Spring and early summer were softer across much of the Bay Area, but San Mateo County remained notably strong (especially in more affluent areas), helped by ongoing AI-driven demand.
July 2025 Median Prices (Closed Sales)
| County | Single-Family Home | Condo |
|---|---|---|
| San Francisco | $1,600,000 | $1,100,000 |
| San Mateo | $1,900,000 | $770,000 |
| Santa Clara | $1,800,000 | $757,000 |
Year-over-year snapshot:
- Single family homes: roughly flat across San Francisco, San Mateo, and Santa Clara.
- Condos: San Francisco −14% YoY, San Mateo −10% YoY; Santa Clara roughly flat.
What we’re seeing on the ground
- Rates: Fell to a 10-month low this week, extending last week’s decline—welcome relief for buyers.
- Pace: Days on market have inched up in all three counties → a bit more leverage for buyers.
- Forecasts: Fannie Mae, NAHB, and MBA expect mid-6% mortgage rates through 2025, with possible sub-6% by late 2026.
- Segment split: Higher-end, move-in-ready homes in prime areas are still drawing strong attention; the AI boom continues to support demand in San Mateo & Silicon Valley corridors.
Outlook
If improving economic indicators continue—and inflation/employment don’t worsen—late-2025 activity could strengthen, particularly if rates keep easing.
Let’s plan your next move
Whether you’re buying or selling, the right strategy depends on your specific neighborhood and price point.
Schedule a 1:1 consultation: https://calendly.com/agemhome
![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-592x444.png)
