San Mateo and Santa Clara counties see month-over-month double-digit percentage rise in sales.
California's housing market rebounded in February with statewide home sales reaching their highest level in more than two years, according to a report released last week by the California Association of Realtors. Realtor officials attribute the spur in home sales to declining mortgage rates and a rise in new listings at the start of the year.
February's sales pace surged 11.6% from the 254,110 homes sold in January and was up 2.6% from a year ago. The February sales level was the highest since October 2022.
"California home sales rebounded strongly in February after a sluggish start to the year, supported by increased buyer activity and more available homes on the market," said C.A.R. President Heather Ozur. "Lower borrowing costs made homeownership more accessible to buyers who were previously sidelined by affordability challenges."
The February statewide median price of $829,060, was down 1.2% from January and up 2.8% from $806,480 in February 2024. The downward trend in the median price will likely reverse in the coming months, as home prices typically rise in March until the end of the homebuying season, according to the report.
On a regional level, Tammie Peters, president of the Silicon Valley Association of Realtors, said, "The San Mateo and Santa Clara county housing markets have seen a flurry of activity with more new listings. Buyers can expect more options and also more competition as we head into the spring buying season."
According to MLSListings' February County Summaries report, in San Mateo County, the median single-family home cost $2,095,000 and sold in 10 days for 107% of the list price based on 201 sales in February 2025. Inventory was at 349, up 29% from January. Average days on market moved from 37 in January to 22. New listings were up 15% over January. Closed sales increased 30% from January from 155 to 201, though down 4% from February 2024.
In Santa Clara County, the median single-family home cost $1,990,000 and sold in eight days for 109% of the list price based on 451 sales in February 2025. Inventory was at 671 up 46% from January. Average days on market decreased from 25 to 16 from the month before. New listings were up 33% over January. Closed sales were up 20% from January from 375 to 451, unchanged from February 2024.
The Federal Reserve decided last week to leave interest rates unchanged. However, Fed officials are braising for slower growth and left the door open for two more cuts this year.
"Although mortgage interest rates remain elevated, they are still lower than a year ago. According to our association's affiliated mortgage professionals, we've come to a 'more likeable market.' They are reporting more buyers seeking approval for mortgage loans," said Peters. "Lenders are offering more supportive products for their customers and opening up opportunities for more buyers to be qualified. Your Realtor can provide you with a list of preferred lenders with whom they have worked with because they have a good track record and understand the local market."
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.