The Local Lowdown
Quick Take:
- Single-family median sale prices showed a mixed picture in February, with Santa Clara County rebounding strongly while San Mateo County experienced a significant year-over-year decline.
- Inventory levels remain well below last year, with single-family home inventory down more than 12% year-over-year as the spring market begins to heat up.
- Single-family homes are flying off the shelves, with listings in San Mateo and Santa Clara Counties selling in just 11 and 8 days, respectively.
Note: You can find the charts/graphs for the Local Lowdown at the end of this section.
Santa Clara County bounces back while San Mateo stumbles
The single-family home market in Silicon Valley showed divergent trends in February as the spring selling season got underway. Santa Clara County posted a modest 0.63% year-over-year increase in median sale price, with the median home selling for $2,000,000. Santa Cruz County remained flat compared to last year, with the median home selling for $1,250,000. However, San Mateo County saw a notable 8.24% year-over-year decline, with the median home selling for $1,950,000. The condo market continued its struggles, with declines across the board. Santa Clara County condos fell 10.97% year-over-year to $734,500, San Mateo County condos declined 8.07% to $765,000, and Santa Cruz County condos dropped 3.18% to $685,000.
Inventory remains constrained as buyers prepare for spring
As we move into the spring selling season, inventory levels continue to lag behind where they were last year. There are currently 1,350 single-family homes for sale across Silicon Valley, representing a 12.11% year-over-year decline. The good news is that new listings are starting to flow into the market, with a 20.34% month-over-month increase in new single-family listings and a 53.38% jump in sold listings compared to last month. The condo market tells a similar story, with 633 condos currently for sale, down 7.05% year-over-year. This persistent inventory shortage will likely create significant competition among buyers as we head deeper into the traditionally busy spring months.
Single-family homes are selling at a blistering pace
If you blinked, you might have missed it! Single-family homes in San Mateo and Santa Clara Counties are selling incredibly quickly, with the average listing spending just 11 and 8 days on the market, respectively. This represents no change from last year in either county, demonstrating just how competitive the market remains. Santa Cruz County homes are taking a bit longer, averaging 30 days on the market, though this still represents a 50% year-over-year increase. The condo market presents a different picture, with days on market increasing substantially across the region. San Mateo County condos are spending 64.29% more time on the market compared to last year, while Santa Clara County condos are up 21.43%. Most dramatically, Santa Cruz County condos are taking an average of 84 days to sell, a staggering 546.15% increase compared to February 2025!
Silicon Valley kicks off spring firmly in seller's market territory
When determining whether a market is a buyers' market or a sellers' market, we look to the Months of Supply Inventory (MSI) metric. The state of California has historically averaged around three months of MSI, so any area with at or around three months of MSI is considered a balanced market. Any market that has lower than three months of MSI is considered a seller's market, whereas markets with more than three months of MSI are considered buyers' markets.
The single-family home market remains a strong seller's market across Silicon Valley as we enter the spring season. San Mateo and Santa Clara Counties both have just 1.1 months of supply on the market, representing year-over-year decreases of 21.43% and 8.33%, respectively. Santa Cruz County has the tightest market of all, with just 2 months of supply, a dramatic 31.03% decline from last year. The condo market offers a bit more balance for buyers, with San Mateo County at 2.5 months of supply, Santa Clara County at 2.9 months, and Santa Cruz County at 3.6 months. With inventory levels continuing to trail demand and homes selling at a rapid clip, buyers should be prepared to act decisively when they find a property that meets their needs!
