San Mateo County Housing Market 2025: Rising Prices & More Homes for Sale
The San Mateo County real estate market is off to a strong start in 2025, with home prices climbing despite a surge in available listings. In January, the median home price hit $1.66 million, up 6.6% year-over-year (YoY), while the number of homes for sale jumped 10.3% month-over-month (MoM) to 784 active listings. This unusual mix of rising prices and growing inventory presents opportunities for both buyers and sellers.
Home Prices Keep Climbing
Even with more homes hitting the market, prices are still rising:
3-bedroom homes: $1.6M median price (+5.9% YoY)
4-bedroom homes: $2.5M median price (+7.0% YoY)
Luxury homes (5+ bedrooms): Holding steady at $3.6M median
Price per square foot: $1,046 (+6.2% YoY)
San Mateo County continues to outperform its neighbors:
CountyJan 2024 PriceJan 2025 PricePrice ChangeSanta Clara$1.4M$1.5M+8.5%San Francisco$1.3M$1.4M+2.1%
More Homes for Sale – But Not for Everyone
While total inventory grew 10.3% MoM, different property types saw big variations:
5+ bedroom homes: +30.7% MoM (Luxury homeowners are cashing in)
2-4 bedroom homes: +12.3% avg increase (More options for move-up buyers)
1-bedroom homes: -13.6% decline (Tight supply for entry-level buyers)
This suggests that buyers looking for smaller homes may face more competition, while luxury and mid-sized home buyers have more negotiating power.
Buyers Still Facing Competition
Even with more inventory, the market remains highly competitive:
47% of homes sold above asking price
57% of sales closed in under 30 days
Average days on market: 41 days (-16.8% YoY)
Bidding trends:
47% sold over asking
12% sold at asking
40% sold under asking
Premium homes near tech hubs are seeing the most intense bidding wars, as buyers take advantage of stock market gains from 2024.
What This Means for You
For Sellers
✅ Pricing matters – Move-in ready 3-4 bedroom homes are commanding top dollar.
✅ Luxury sellers need to be strategic – High-end homes require precise pricing.
✅ The spring market is starting early – Listing in Q1 could be a smart move.
For Buyers
✅ More inventory = more options – But competition is still fierce in hot areas.
✅ Get pre-approved – Sellers favor buyers who can move fast.
✅ Consider 1-2 bedroom homes – Prices aren’t rising as fast in this segment.
What’s Next for 2025?
Experts predict a busy Q2 fueled by:
Potential Fed rate cuts
A strong job market in tech
Buyers jumping in after sitting out in 2024
With the spring market heating up, both buyers and sellers should act now to take advantage of shifting conditions. Whether you’re looking to upsize, downsize, or purchase your first home, understanding current trends and acting strategically can make all the difference in achieving your real estate goals. If you're curious to learn more about the real estate market, reach out lisa.lum@cbrealty.com.