December brought San Mateo County's 2024 real estate market to a close on a note of quiet strength. While transaction volume naturally slowed during the holiday season, the underlying metrics point to a market that finished the year with solid momentum and sets up well for the spring ahead.
The Numbers
The median sale price for single-family homes in San Mateo County reached approximately $1.82 million in December, representing year-over-year appreciation of roughly 7.5 percent. This figure held steady compared to November, which is notable because December typically sees a seasonal dip as buyers and sellers step back for the holidays.
Closed transactions totaled approximately 220 homes county-wide, down from November's 280 but consistent with historical December patterns. More telling is the pending sales figure: contracts written in December that will close in January were up about 12 percent compared to December 2023, suggesting that motivated buyers were active even during the holidays.
Inventory and Days on Market
Active inventory at month-end stood at approximately 350 single-family listings, representing about 1.6 months of supply. By any measure, this remains a seller's market. A balanced market typically requires four to six months of inventory, and San Mateo County has not approached that threshold in recent memory.
The average days on market for sold properties was 24 days, up slightly from November's 21 days. Properties priced correctly in desirable neighborhoods continued to sell within two weeks, often with multiple offers. The homes lingering longer were predominantly those with pricing misalignment, deferred maintenance, or location challenges near arterial roads or commercial zones.
Price Segments
The most active price segment was $1.5 million to $2.5 million, where demand from tech professionals and dual-income households remained robust. Competition was fiercest in Burlingame, San Carlos, and Belmont, where well-presented homes in walkable neighborhoods regularly attracted four or more offers.
The luxury segment above $3 million saw more measured activity, with buyers taking additional time to evaluate properties but ultimately transacting at strong price levels. Hillsborough and Atherton continued to command the county's highest per-square-foot prices, with several notable closings above $1,200 per square foot.
Interest Rates and Buyer Sentiment
Mortgage rates ended December near 6.7 percent for a 30-year fixed, slightly above where many buyers had hoped they would be by year-end. Despite this, buyer sentiment in the Bay Area remains relatively rate-insensitive compared to other markets. The combination of strong household incomes, significant equity positions from tech compensation, and a structural housing shortage means that Peninsula buyers adjust to rate environments rather than wait them out.
What This Means for 2025
The December data reinforces a theme that defined all of 2024: San Mateo County is a supply-constrained market with persistent demand driven by the region's economic engine. For sellers, the message is clear: well-prepared homes priced strategically will continue to perform. For buyers, the window to act is before spring inventory arrives and competition intensifies.
I will be publishing detailed neighborhood-level data in my January market briefing. If you would like a copy tailored to your specific area of interest, please reach out.