October 2025 - Silicon Valley Market Insights

The Local Lowdown

Quick Take:

• Median sale prices rose across all single-family markets in August.

• Inventory dipped below last year’s levels for the first time in months.

• Homes continue to sell quickly, keeping competition fierce.

Note: Charts and graphs for the Local Lowdown are available at the end of this section.

Home prices rebound across Silicon Valley

After several months of softening, Silicon Valley saw a rebound in August, with median single-family home prices climbing in every major county. Santa Clara, Santa Cruz, and San Mateo Counties posted gains of 3.01%, 5.54%, and 6.74%, respectively.

Condos, on the other hand, saw mixed results. Median prices declined 3.64% in Santa Cruz County, 4.02% in San Mateo County, and 5.20% in Santa Clara County. Despite these dips, demand remains steady as buyers seek value in a market defined by limited supply.

Inventory reverses course

After months of buildup, Silicon Valley’s single-family inventory took an unexpected turn in August—declining 4.04% year over year. This marks the first inventory decrease in months and signals that demand continues to absorb available homes quickly.

The condo market is showing similar signs of tightening, with inventory up just 16.77% year over year, a notable improvement from earlier in the summer when supply levels were far higher.

Homes are still selling fast

Even with slight increases in market time, single-family homes continue to move fast by any standard. Listings in San Mateo and Santa Clara Counties average just 14 days on the market, while Santa Cruz homes spend about 26 days before going pending.

Condos are moving more slowly—31 days in Santa Clara County, 38 days in San Mateo County—but Santa Cruz County stands out, where condos sell in just 15 days, reflecting localized demand.

Silicon Valley remains a seller’s stronghold

Using MSI as the measure, Silicon Valley continues to heavily favor sellers. San Mateo and Santa Clara Counties both post under 1.5 months of supply, keeping competition high.

By contrast, Santa Cruz County’s 3.9 months of supply marks it as a buyer’s market, offering more breathing room for buyers. Condo markets across the region remain buyer-leaning, with supply ranging from 3.2 to 5.5 months, depending on the county.

Bottom Line:

Silicon Valley’s market continues to demonstrate its strength and competitiveness. Single-family homes are driving much of the region’s momentum, with prices rising again after months of softening. Inventory remains tight, keeping the market highly competitive, particularly in San Mateo and Santa Clara Counties, where homes are selling in as little as two weeks. Condos are moving at a slower pace, indicating a more balanced environment for buyers. Overall, Silicon Valley continues to favor sellers, especially in the single-family home market, as limited inventory and strong demand keep competition fierce.