October 2025 Market Update

Santa Clara County Leads Bay Area Housing Market Amid Mixed Economic Signals

As of early October, 30-year mortgage rates, at about 6.3%, were essentially unchanged from early September (but well down from 7% in early 2025: The Fed's first 2025 reduction of its benchmark rate, of .25%, had little effect, though consensus opinion is that further cuts are probably coming before the end of the year. Inflation continued to tick up slightly, while stock markets hit new all-time highs. Nationally, consumer confidence remained low, with significant concerns regarding personal finances, employment and inflation - though affluent consumers deeply invested in stock markets were less concerned than low and middle income segments.

Bay Area real estate markets have been seeing widely varying conditions and trends by price segment, property type, level of affluence, and perhaps most of all, by whether they're being significantly impacted by the AI boom. Generally speaking, Santa Clara County is on the positive side of all those factors and criteria, and remains the strongest county market in the Bay Area. The Q3 2025 median house sales price was its highest Q3 price ever, and the numbers of luxury home sales in September rose 50% from September 2024. Santa Clara continues to dominate luxury home sales in the region.

Mortgage rate had dropped a little bit from earlier this year and more significantly from Q3 of last year.

The median sales price for single-family homes has increased significantly since 2018, while condos and townhomes have not performed as well.

Santa Clara County has experienced the highest year-over-year appreciation in the Bay Area.

Santa Clara County is one of the most educated and affluent counties in the country. Of California counties, it has the highest percentage of graduate or professional degree holders, and they earn the highest median incomes in the state.

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