Santa Clara County Real Estate Market Update – January 2025: A Seller’s Market with Rising Inventory

As we enter 2025, Santa Clara County’s real estate market continues to favor sellers, but subtle shifts indicate changes that buyers should watch closely. Whether you’re looking to buy or sell, understanding the latest market trends can help you make well-informed decisions. Let’s dive into the key takeaways from the latest market report.

Seller’s Market Continues, but Inventory is Increasing

The Santa Clara County housing market remains a seller’s market, as indicated by the market type gauge. However, an interesting trend is emerging—inventory levels are rising. The latest data shows that the months of inventory have increased to 0.88, marking a 31.34% jump month-over-month. While this still signals a competitive environment for buyers, it suggests that more homes are coming onto the market, giving buyers slightly more options.

Home Prices Holding Strong but Showing Minor Adjustments

Despite the slight increase in inventory, home prices remain strong. The median sold price currently stands at $1,500,000, showing a modest 0.73% decline month-over-month. This slight dip is not unusual at the start of the year and does not indicate a major shift in pricing trends. Sellers are still commanding strong prices, as seen in the 103.5% sold-to-list price ratio, meaning most homes are selling above asking price.

Homes Are Selling Quickly

A key factor contributing to the competitive market is the median days on market, which sits at just 13 days. This represents a 13.33% decrease from the previous month, emphasizing that well-priced homes are moving fast. Buyers should be prepared to act quickly and submit competitive offers.

What This Means for Buyers and Sellers

• For Sellers: The market is still in your favor, with homes selling quickly and often above the asking price. However, with inventory rising, proper pricing and strong marketing strategies are crucial to stand out.
• For Buyers: While competition remains high, an increase in inventory provides more opportunities. Staying pre-approved and ready to move fast is essential in this fast-paced environment.