Strong Sales, High Demand & Opportunity—Bay Area Real Estate Recap

The spring selling season in the Bay Area is typically the most active time of year for real estate, but in Q2 2025, it came with unique challenges. High mortgage rates and continued economic uncertainty created a more cautious market across much of the region. Yet, even in the face of these headwinds, Santa Clara and San Mateo counties stood out with some of the strongest performances in the Bay Area.

Santa Clara County: Record Prices and Robust Luxury Sales

Santa Clara County remained highly competitive by any standard. In fact, the median sales price for single-family homes reached a new all-time high in Q2, a rare accomplishment in today’s environment. Fueled by the ongoing AI boom, the county also saw its highest-ever quarterly count of $5 million+ home sales.

Homes continued to sell quickly, often with multiple offers and well above asking price. While there was some year-over-year softening due to economic conditions, demand remained incredibly strong—particularly for move-in-ready homes in prime locations.

San Mateo County: Quick Sales and High-End Activity

San Mateo County also showed notable resilience. While the county’s overall median home price saw a slight dip compared to last year, many individual city markets actually posted year-over-year gains. Like in Santa Clara, higher-end segments continued to thrive, with luxury sales reaching their highest level since the peak of the pandemic boom.

Properties in sought-after neighborhoods moved fast, frequently attracting aggressive offers and competitive bidding wars.

What’s Driving the Market?

As of early July, several factors suggest the market could strengthen further in the second half of the year:

• Interest rates have begun to gradually decline, making borrowing a bit more affordable.

• The stock market has recovered significantly, even hitting new highs—boosting consumer confidence and buying power.

• Economic uncertainty is easing, allowing both buyers and sellers to plan more confidently.

What This Means for Sellers

If you’re thinking of selling, this is still a strong market—especially in the mid to upper price ranges. Well-staged, move-in-ready homes that are priced strategically continue to attract strong interest and quick sales. With buyer confidence returning, it’s an ideal time to position your property for maximum exposure and value.

What This Means for Buyers

Buyers who stay patient and strategic still have great opportunities. As more inventory becomes available and interest rates ease, there’s potential to find value—particularly in homes that have been on the market longer, have had recent price reductions, or need minor updates.

Acting quickly and confidently when you find the right home is still key in this competitive environment.

Thinking of making a move? Let’s talk.

Whether you're buying your first home, looking to sell at the right time, or investing in the future, having the right guidance in today’s shifting market makes all the difference.

📲 Contact me today for a personalized consultation or to get a free market analysis of your home.