The real estate market in San Mateo County in February 2025 continues the strong start observed in January. The number of new listings and homes going into contract has increased significantly, signaling a steady rebound from the holiday slowdown. As spring approaches, activity in the market is expected to gain further momentum.
Key Takeaways:
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Mortgage Rates: Interest rates have dipped below 7%, making financing more accessible.
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Home Prices: The median house sales price in January increased by 7.5% year-over-year.
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Market Activity: Listings surged in January, a strong indicator of growing inventory and buyer activity.
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Luxury Market: Homes priced over $5 million followed seasonal trends, slowing in winter but expected to pick up in spring
Mortgage Rate Trends
The 30-year fixed-rate jumbo mortgage remains a key driver for San Mateo’s housing market. While rates remain elevated compared to pre-pandemic levels, they have started to stabilize, encouraging more homeowners to list their properties.
Freddie Mac’s Outlook:
"Our outlook for the U.S. economy is positive and offers a promising perspective on the housing market in the year ahead. We expect the U.S. labor market to continue to cool in 2025, which will reduce some of the pressures on inflation. And though we forecast mortgage rates to remain higher for longer, we expect the rate lock-in effect to cool off throughout the year as homeowners adjust to the new normal with respect to rates, therefore adding more inventory to the market."
San Mateo County Home Prices
Single-Family Homes
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The median house sales price for January rose by 7.5% compared to last year.
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Prices tend to peak in spring, meaning further increases are likely in the coming months.
Condos & Townhomes
- The 3-month rolling median condo sales price showed a 6.5% annual increase.
- Unlike single-family homes, condo appreciation has been more stable over the past five years.
2024 Median Prices for 2-Bedroom Condos in the Bay Area:
- San Mateo County: $859,000
- San Francisco: $1,237,500
- Santa Clara: $820,000
Click the image below for an in-depth full report.
Market Inventory & Sales Trends
New Listings & Inventory
- January saw a large rebound in new listings, following December’s typical market slowdown.
- As of February 1, 2025, the number of active listings rose by 15% year-over-year, offering more choices for buyers.
Homes Going into Contract
- The number of homes accepting offers increased sharply in mid-January, a strong signal of growing buyer demand.
- The absorption rate (percentage of listings going into contract) is expected to rise significantly as we move into spring 2025.
Price Reductions & Negotiability
- The average home sold 1% above list price over the past two months, reflecting strong buyer competition.
- The number of price reductions peaked in October 2024 but has since declined.
Luxury Home Market ($5M+)
Luxury homes in San Mateo County remain in demand, following seasonal trends:
- Winter sales slowed in December and January.
- Spring 2025 is expected to bring renewed luxury market activity.
With luxury sales volume increasing in past years, we expect a surge in high-end home sales this spring.
Home Value Trends – Price per Square Foot
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San Mateo County: $1,157/sq. ft.
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San Francisco: $1,109/sq. ft.
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Santa Clara: $1,000/sq. ft.
Home value appreciation in San Mateo remains strong, with consistent demand for both houses and condos.
What’s Next for 2025?
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More inventory: As sellers adjust to higher mortgage rates, we expect more listings to hit the market.
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Competitive buying conditions: The combination of stable mortgage rates and strong demand will likely lead to bidding wars in the spring season.
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Luxury market growth: High-end homes should see increased activity from March through June.
Final Thoughts
San Mateo County remains a desirable market with strong price growth and high demand. While economic uncertainty continues, the housing market is poised for an active and competitive 2025.
For buyers, this could be a great time to enter the market before prices peak later in the year. For sellers, spring offers the best opportunity to maximize value and attract multiple offers.
Looking to buy or sell in San Mateo County? Let’s discuss your real estate goals. Contact us today to explore the best opportunities in the market!
