Q3 2024 Market Update for San Mateo and Santa Clara Counties

In September 2024, the Federal Reserve made its first interest rate cut since 2020, a move that is expected to boost housing markets. Experts are predicting additional rate reductions by year-end, with inflation reaching its lowest level in over three years and consumer confidence continuing to rise. Despite recent market volatility, the stock markets remain near record levels. Mortgage rates, which had dropped to their lowest since early 2023, spiked again due to a strong job report, but this is likely a temporary shift within the broader downward trend. While forecasting interest rates remains tricky due to external factors, most analysts believe that rates will trend lower as we head into Q4.

So far, the reduction in interest rates hasn’t sparked the surge in buyer demand that many anticipated. Some buyers appear to be waiting for further rate cuts before jumping in. As a result, inventory levels are growing faster than sales, creating more favorable conditions for buyers. However, homes in good condition and priced well continue to sell quickly and, in many cases, above the asking price. Market activity typically peaks in the spring, with a cooling in the summer, and Q3 has followed this pattern. October marks the last active period before the holiday slowdown, with sellers often making price adjustments to attract buyers before the year ends.

San Mateo County Overview

In August 2024, San Mateo County saw a median sale price of $1,780,000 for single-family homes, with properties selling in an average of 13 days and fetching 105% of their asking price. The county recorded 330 sales for the month, reflecting a 4% increase from July and a 3% year-over-year gain compared to August 2023.

Key Market Insights:

• Inventory: 461 active listings, a 4% month-over-month increase and a 10% rise from August 2023.

• New Listings: Up by 11% from July, unchanged compared to August of last year.

• Days on Market (DOM): The average DOM increased from 21 to 24 days, a 14% rise, while the median DOM was 13 days.

With rising inventory and steady demand, San Mateo County continues to offer strong opportunities for both buyers and sellers. Buyers may find increased options, while sellers with competitively priced homes can still secure fast sales.

Santa Clara County Overview

Santa Clara County’s real estate activity remained robust in August 2024, with a median sale price of $1,825,000. Homes sold swiftly, with an average of 10 days on the market, often at 105% of the asking price. The county reported 759 closed sales, representing a 5% decline from July but a 9% increase compared to August 2023.

Key Market Insights:

• Inventory: 790 active listings, a 6% drop from July but a 19% increase year-over-year.

• New Listings: Down 5% from July and 2% lower than August last year.

• Days on Market (DOM): The average DOM rose slightly from 16 to 18 days, with a median of 10 days.

Despite the small dip in sales compared to the previous month, Santa Clara County remains a competitive market, with high demand for homes priced right and in good condition. Both buyers and sellers can benefit from these dynamics.

Looking Ahead

The real estate markets in San Mateo and Santa Clara counties are expected to remain active, driven by solid buyer interest and an improving economic backdrop. As we move into Q4, with anticipated further reductions in mortgage rates, buyer activity may increase. Homes priced competitively and presented well will likely continue to sell swiftly, though sellers may face more competition as additional properties enter the market.

For buyers, the current conditions—characterized by moderate pricing and increased inventory—present opportunities, especially for those ready to act quickly. Sellers, meanwhile, should focus on pricing homes accurately and preparing them well for the market to ensure successful transactions before the typical winter slowdown.

This report is based on data from reliable sources but may contain errors and is subject to revision. Economic trends and real estate conditions can be volatile and are often influenced by broader economic factors. Figures are approximate and subject to change as new information becomes available.