May 2025 - Silicon Valley Market Insights

Silicon Valley Market Insights | The Local Lowdown

At a Glance

• Santa Cruz County’s single-family median sale price has dipped for the first time in over a year.

• Inventory is surging across the region, giving buyers more options.

• Despite increased listings, homes are still selling quickly.

Santa Cruz County’s Winning Streak Pauses
After more than a year of steady growth, Santa Cruz County saw an 8.57% drop in median single-family home sale price year-over-year in April. This slowdown is a natural market cooldown after extended growth. Meanwhile, neighboring San Mateo and Santa Clara Counties continue to show resilience, with prices rising 1.69% and 5.50%, respectively.

Inventory Is Climbing—Fast
The supply of homes for sale continues to grow sharply. New single-family home listings increased 8.73% year-over-year, while closed sales grew by only 0.79%. This dynamic has pushed active inventory to nearly 30% above last year’s levels—the highest in two years. The condo market has seen an even bigger jump in inventory, rising over 50% compared to last year.

Homes Are Still Moving Fast
More inventory doesn’t mean homes are sitting idle. Single-family homes in Santa Clara County sell in just 8 days on average, with homes in San Mateo and Santa Cruz counties moving in 11 and 15 days, respectively. Condos take slightly longer but still sell briskly relative to historical averages.

Buyer or Seller’s Market?
Using Months of Supply Inventory (MSI), a balanced market sits near three months. Below three favors sellers, above favors buyers. Despite more inventory, San Mateo and Santa Clara remain seller markets at 1.7 months supply, while Santa Cruz has shifted toward buyers at 3.5 months. The condo market is leaning buyer-friendly as well, especially in Santa Cruz with over five months of supply.

The Bottom Line
Santa Cruz’s single-family home prices are cooling after a strong run, but inventory surges are offering buyers more choices and negotiating power. Neighboring counties remain strong seller’s markets, though the condo market is becoming more balanced across the region. Whether buying or selling, a local expert’s guidance is key to navigating this evolving landscape.