Bay Area Uncertainty, but Santa Clara County Hits Record Median House Price
While most Bay Area markets showed uncertainty in April, Santa Clara County stood out with strong demand, a 9% year-over-year jump in median house prices (the highest in the region) and a leading housing market nationally.
While there were some mixed signals, the market showed interesting dynamics.
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Rising Inventory: Santa Clara County experienced a significant increase in housing inventory. This surge offers more options for buyers.
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Market Pace: Despite the increase in listings, homes continued to sell rapidly. In Santa Clara County, the average time on market for single-family homes was just 8 days, while condos averaged 14 days. And Luxury home sales remained the highest in the Bay Area
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Condo Market: The condominium inventory levels rising by over 50% year-over-year. This contrasted with the single-family home market, which remained competitive.
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In March and April, major stock indices saw sharp declines, reducing household wealth and dampening confidence, which affected housing activity. By late April and May, stock values rebounded sharply, which is expected to boost the housing market.
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Although we expect the index below to show a significant decline next month, it also underscores the level of economic uncertainty that existed in April.
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Despite the major political and economic shifts in 2025, mortgage rates have not fallen as much as expected. Concerns about the national debt have created uncertainty in the bond market, and the Federal Reserve, still cautious about future inflation, has kept its benchmark interest rate steady once again.
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The biggest change in the market is the increase in the number of homes for sale. April 2025 had the most homes on the market in the last five years, but it’s still less than what we saw before the pandemic.
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Price reductions have increased both in number and percentage, reaching their highest level for the month of April in more than seven years, as shown in the chart below. For sellers, getting the price, preparation, and marketing right is more important than ever. Buyers, already navigating economic uncertainty, now have more choices in the market.
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The most frequent question we get from our clients is about the appreciation ratio between single-family homes and condos. Here is a chart that explains the trend before and after the pandemic hit.
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Still, we are currently in the seasonal peak of the housing market, and Santa Clara County continues to have a strong market, especially for single-family homes. It will be interesting to see how the market absorbs active listings and how it changes this fall and winter.
Questions? Reach out to us at (650) 988-5114.
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