Fall is here, and the San Mateo County housing market is holding strong. Prices remain steady, sales are active, and local confidence continues to grow thanks to a resilient economy and steady buyer demand.
If you are planning to buy or sell in the Bay Area, here’s what the latest numbers are telling us about where the market stands right now.
A Steady Market Through Shifting Conditions
As of early October, 30-year mortgage rates are averaging about 6.3 percent. That’s roughly the same as in September but lower than the highs we saw earlier this year. The Federal Reserve’s first rate cut of 2025 had only a small immediate effect, though more cuts are expected before the year ends.
While inflation has ticked up slightly, the stock market is performing at record levels. Consumer confidence is mixed, but high-income households—especially those working in the tech and AI sectors—are keeping real estate activity strong.
San Mateo County remains one of the most stable and competitive housing markets in the Bay Area, supported by strong local employment and continued tech growth.
Home Prices Hold Firm at Record Levels
The median house sales price for the third quarter of 2025 increased by 1.5 percent compared to last year, reaching its highest third-quarter level on record.
Even though prices tend to soften slightly after the busy spring season, this year’s numbers show continued confidence and strong long-term value in the market.
San Mateo and Santa Clara Remain the Bay Area Leaders
Both San Mateo and Santa Clara Counties recorded median home prices of two million dollars, making them the two most expensive counties in the Bay Area. Marin and San Francisco followed closely at around 1.7 million dollars.
These figures show that San Mateo County continues to be one of the most desirable and high-performing markets in Northern California.
More Homes on the Market
As of October 1, active and coming-soon listings increased slightly compared to the previous month and were also a bit higher than this time last year.
Here’s the mix of listings right now:
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66 percent single-family homes
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25 percent condos
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9 percent townhomes
More homes are available, but sellers still have the advantage—especially those who prepare and price their properties correctly.
Sales Activity Continues
Sales volume in September 2025 rose about 5 percent from last year and showed an increase from August. Buyers are still making moves, especially when a home is priced well and presented beautifully.
Overbidding Cools Slightly
The average home sold for 0.7 percent above its list price in September, down from 3 percent last year. Houses sold for about 2 percent over asking, while condos sold for about 5 percent below.
Bidding wars are less frequent than in early spring, but competition remains healthy for desirable homes.
Homes Taking a Little Longer to Sell
The average time on market in September was 37 days, about eight days longer than a year ago. Houses averaged 30 days on market, while condos averaged 69.
Well-maintained homes that show well and are priced right are still selling quickly, while others may take a bit more time as buyers become more selective.
Mortgage Rates Remain Stable
After dipping to their lowest levels of 2025 in late summer, mortgage rates have stabilized around 6.3 percent. Experts expect small decreases through the end of the year, which could help more buyers step into the market before the holidays.
What This Means for You
For Buyers
Rates are steady, inventory has improved slightly, and prices remain consistent. Fall is a great time to find the right home with less competition than in spring.
For Sellers
Demand remains healthy, but the market rewards preparation and realistic pricing. Homes that are move-in ready and attractively priced continue to sell well.
Let’s Talk About Your Next Move
If you are thinking about buying, selling, or investing, now is the perfect time to explore your options. I would love to help you understand how these trends fit your goals and guide you through your next steps with confidence.
Daniel Smith, CA DRE# 02066571
📱 Call or text: 415-746-9920
📫 Email: [email protected]
