San Mateo Housing Market February 2025

As we move into February 2025, the San Mateo housing market reflects both resilience and transition. After a year marked by economic shifts, fluctuating interest rates, and evolving buyer dynamics, the local real estate landscape continues to adjust to new conditions.

A Strong Start to 2025

The San Mateo County real estate market began 2025 with renewed energy. Following the typical December slowdown, both new listings and pending sales rebounded sharply in January. This uptick signals the early signs of the competitive spring season, historically known for heightened activity and price growth.

Trends in Home Prices

In 2024, the median sales price for single-family homes reached record highs, while condo prices experienced slight declines. This divergence reflects shifting buyer priorities, with increased demand for space and privacy. Despite market fluctuations, consistent demand and competitive bidding kept price trends stable.

Market Activity and Seasonality

The number of new listings and closed sales increased compared to January 2024, though still below historical norms. San Mateo’s real estate market remains highly seasonal, with activity typically ramping up from February through spring, the busiest period for transactions.

The Role of Interest Rates and Economic Factors

Interest rates dipped below 7% at the start of the year, providing some relief to buyers. The Federal Reserve’s decision to hold its benchmark rate steady contributed to this decline. Inflation also eased slightly, offering modest support to consumer purchasing power. However, market volatility and political uncertainty continue to influence buyer and seller confidence.

Buyer and Seller Dynamics

Overbidding remained common in early 2025, particularly for competitively priced homes in sought-after neighborhoods. The average days on market stayed low, reflecting strong demand and strategic pricing by sellers. Meanwhile, consumer confidence showed mixed signals, with cautious optimism amid economic uncertainties.

Looking Ahead to Spring 2025

The spring market is expected to be competitive, with increasing inventory and strong buyer demand. As the rate lock-in effect diminishes, more homeowners are likely to list properties, creating additional opportunities for buyers.

Key Takeaways for February 2025

• Home Prices: Single-family home prices remain strong; condo prices show slight adjustments.

• Interest Rates: Rates below 7% have boosted buyer interest, though future increases are possible.

• Market Activity: Listings and pending sales rebounded from December lows, signaling early spring momentum.

• Buyer Competition: Overbidding trends continue, driven by limited inventory and high demand.

Whether you're planning to buy, sell, or stay informed, understanding these market dynamics is key to navigating San Mateo County real estate in 2025.