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May 2025 Bay Area Real Estate: Strong Demand Meets Growing Uncertainty

  • Yvonne Yang
  • May 29
  • 1 min read

Here’s your latest Bay Area real estate update for May 2025:


Despite economic uncertainty across the region, Santa Clara and San Mateo counties continued to shine in April with strong buyer demand and rising home prices. Santa Clara County led the way with a record-setting median house price, up 9% year-over-year—the largest gain in the Bay Area. San Mateo wasn’t far behind, posting a solid 6% increase. Luxury home sales were particularly active, and move-in-ready, professionally staged homes in prime locations are still drawing competitive, multiple-offer scenarios.


That said, we’re also seeing some mixed signals. Inventory is rising fast—Santa Clara saw a 53% jump in homes for sale—while the number of homes going into contract has declined. This suggests that buyers are becoming more cautious in light of economic volatility. Demand for condos and townhomes has cooled, and more sellers are reducing prices to attract offers. Since many of April’s sales went into contract before early-month financial turbulence, May's numbers may provide a clearer view of how the market is adjusting.


If you’d like to talk through what this means for your buying or selling plans, I’m always here to help.









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