Rise in new listings could signal an active spring homebuying season.
California's January's sales pace fell 10% in December and was down 1.9% from a year ago, according to the California Association of Realtors, due to high mortgage rates and the devastating wildfires in Southern California. Although rates have been trending downward in the past four weeks, C.A.R. reports home sales will likely remain soft in February and March since the aftermath of the wildfires will continue to slow market activity in Southern California over the next few months.
The January median price declined 2.6% from December to $838,850 and was up 6.3% from January 2024. Home prices could moderate further in February but are expected to climb in March as the market gears up for the upcoming spring homebuying season.
January did see a rise in new listings, which is promising, according to Realtor officials. "While sales are expected to remain soft this month and next, it is encouraging to see an uptick in new listings as the market gears up for the spring homebuying season," said C.A.R. President Heather Ozur.
C.A.R. chief economist Jordan Levine noted new active listings at the state level rebounded with the fastest year-over-year growth in nearly four years. Last month's total marked a five-year high for January.
"With mortgage rates remaining elevated since late 2022, many homeowners are coming to terms with the fact that 3 percent rates aren't returning anytime soon. As a result, more sellers are deciding to list their homes on the market," said Levine.
MLSListings' county summaries for January 2025 indicates San Mateo County closed sales decreased 35% from December from 237 to 155, and were up 9% from January 2024. The median single-family home cost $1,800,000 and sold in 14 days for 104% of the list price based on 155 sales in January 2025. Inventory was at 267, up 58% from December and down 9% from January 2024. New listings were up 216% over December, and up 7% from December of last year.
In Santa Clara County, closed sales were down 33% from December from 560 to 374, and up 4% from January 2024. The median single-family home cost $1,800,000 and sold in 10 days for 104% of the list price based on 374 sales in January 2025. Inventory was at 456, up 46% from December and up 8% from January 2024. New listings were up 114% over December, and up 18% from January 2024.
"Although it still appears to be a seller's market, the rise in new listings is a good sign for homebuyers since they'll have more inventory to choose from," said Tammie Peters, president of the Silicon Valley Association of Realtors.
Peters remarked homes are still selling over list price in many cities in the region, although the percentage over list price has decreased in some cities. She went on to stress that "all real estate is local" as there is a variation in median sale price depending on the neighborhood.
MLSListings' data shows the January 2025 median sale price in Los Gatos increased 20% from January 2024 to $2,761,500. The median sale price in Saratoga increased 3% to $4,275,500. San Mateo saw a year-over-year decrease of 3% in its median sale price, while Menlo Park's median sale price saw a 10% decrease from January 2024.
"When you purchase a home you gain wealth by building equity in your home. Homeownership is a good investment in Silicon Valley as it's the center of the arts, a melting pot of talents, has excellent schools and universities, and it's blessed with great weather to boot," said Peters.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
For further information, please email or call the SILVAR office at (408) 200-0100.