We’re thrilled to bring you the latest scoop on our local real estate market for March 2025. As your go-to real estate experts in San Mateo County, we’re breaking down the numbers, so you can easily understand what’s happening. And if you’re planning to buy or sell in the San Francisco Bay Area, feel free to reach out—we’d love to help.
Let’s dive into the exciting changes we’re seeing!
What’s happening right now
The real estate market is picking up speed this spring, even as financial markets show some ups and downs. Mortgage rates have dipped slightly, which is great news for buyers. On the flip side, consumer confidence is still shaky due to economic uncertainty.Despite that, demand in San Mateo County stayed strong through March. Homes sold faster, bidding wars picked up, and more buyers jumped into the market.
Prices Are Trending Higher
The median house price in Q1 2025 rose nearly 5% compared to the same time last year, hitting a new Q1 record. San Mateo County homes remain among the most valuable in the Bay Area, with the average home selling for more than asking in March.
Historically, spring is when prices peak—so we may see even more growth in the months ahead. Just remember, the median price is a general measure: half of homes sold for more and half for less.
What About Condos?
Condos are also holding their ground, with prices up about 6% year-over-year as of March. While they haven’t appreciated as quickly as single-family homes over the past few years, they remain a smart choice for buyers looking for value in a high-demand area.
Like homes, condo pricing follows seasonal trends, and long-term patterns offer the clearest picture of value.
More homes are for sale
March brought a jump in new listings—28% more than last year. Inventory is growing, which gives buyers more choices. That’s a big change from the tight inventory we’ve seen in recent years.
As of April 1st, the number of homes for sale was up 46% year over year, reaching the highest April level in four years.
Buyers Are Jumping In
The market is competitive! In March, 68% of homes sold above asking price, and the average home went for 6% over the list price—the highest overbid percentage since mid-2022.
Homes are also selling faster. The number of days a listing stays on the market continues to drop, especially for well-priced properties. Spring typically brings quicker sales, and this year is no different.
Some sellers are cutting prices
Even though the market is busy, we’re also seeing more price reductions. In March, there were 59% more price cuts compared to the same time last year. This tells us that not every home is flying off the market, and some sellers are adjusting to the competition.
The luxury market is still strong
High-end buyers haven’t slowed down. Homes priced at $5 million and up saw a 21% increase in sales compared to this time last year. These homes are mostly found in San Mateo County’s most sought-after neighborhoods.
Affordability is still a challenge
While prices keep climbing, affordability remains an issue. Higher home prices combined with income limits make it harder for many households to buy in today’s market.
San Mateo County has the highest price per square foot in the Bay Area—$1,083/sq.ft., compared to $946 in San Francisco and $1,029 in Santa Clara County.
What’s Driving All This?
Several things are fueling the market right now:
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Interest rates dipped again in early April, with the 30-year average dropping to 6.64%, the lowest reading since October 2024. Lower rates help buyers afford more and ease monthly payments.
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The stock market and global headlines are making some buyers cautious, but others are ready to move forward now—especially with more homes to choose from.
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Economic uncertainty remains, but San Mateo’s market shows resilience.
Click the image below to access the full report through the Flipping Book.
What This Means for You
If you’re a buyer, now is a great time to explore with more homes on the market and lower interest rates. If you’re a seller, you're still in a strong position—demand is high, and homes are getting top dollar.
These stats give a big-picture view, but the value of your home depends on many factors like location, upgrades, and market timing. That’s where we come in.
Let’s Talk About Your Goals
Whether you’re thinking about buying, selling, or just keeping an eye on the market, we’re here to help you make smart, confident moves. Reach out to talk about your next steps—we’d love to be your trusted real estate team in San Mateo County and the Bay Area.
