Santa Clara County Real Estate Quarterly Market Update — March 2025

As we enter the spring season, the real estate market in Santa Clara County is showing strong momentum. Historically, spring is one of the busiest periods for buying and selling homes, with nearly 40% of all annual home sales occurring in the second quarter (April to June). This March update provides a detailed look at the latest market trends for single-family homes, townhomes, and condominiums in the area.

Inventory and Pending Sales

• Active Listings:
  As of this month, there are 970 single-family homes available for sale. This reflects a modest increase from 944 homes last week and a significant rise compared to 695 homes on the market at this time last year. However, inventory is still below the 1,088 homes recorded six months ago.

• Pending Sales:
  622 homes are currently under contract, up from 574 last week and 564 a year ago, indicating continued strong buyer demand. Although slightly lower than 642 pending sales six months ago, this number demonstrates robust market activity.

Pricing Trends

• Average Sale Price:
  The average sale price for single-family homes in Santa Clara County is now $2,383,875. This reflects a steady increase from $2,219,351 six months ago and $2,287,261 last year, underscoring ongoing home value appreciation.

• Average Price per Square Foot:
  The average price per square foot has risen to $1,217, up from $1,168 six months ago and slightly above $1,205 recorded a year earlier.
  It is important to note that price per square foot may vary based on home size, as larger homes typically have a lower price per square foot due to economies of scale.

List-to-Sales Price Ratio

The list-to-sales price ratio is currently 109.2%, meaning that homes are selling on average 9.2% above the asking price. This ratio is higher than the 104.9% recorded six months ago and slightly above 108.8% a year ago, reflecting competitive offers and strong buyer demand.

Inventory and Pending Sales

• Active Listings:
  There are 679 townhomes and condos on the market, up from 648 last week and notably higher than the 377 homes available this time last year. Inventory is also slightly above the 646 units available six months ago, indicating gradual increases in supply.

• Pending Sales:
  348 townhomes and condos are under contract, an increase from 328 last week and 261 a year ago, and also higher than the 323 pending six months ago. This demonstrates consistent buyer activity in the attached-home segment.

Absorption Rate

The absorption rate for townhomes and condos is now 51.3%, slightly up from 50.6% last week and 50% six months ago. However, it remains below the 69.2% rate recorded a year ago when demand greatly exceeded supply.

Still, over half of available inventory is selling, which signals a stable and active market for attached homes.

• Inventory levels for both single-family homes and attached homes are higher compared to last year, offering more options for buyers.
• Pending sales have increased across all housing types, showing sustained buyer demand.
• Homes continue to sell quickly, with low average days on market.
• Prices are appreciating steadily, supported by demand outpacing supply in many areas.
• Absorption rates reflect a healthy, active market—though less frenzied than the peak activity seen last year.

Market Outlook for Spring 2025

As we move deeper into spring, we expect:

• More listings to enter the market, providing increased choice for buyers.
• Ongoing strong demand, driven by tech professionals and relocating families seeking housing in one of the Bay Area’s most desirable regions.
• Continued price stability and appreciation, depending on how supply and demand balance out in the coming months.

However, it is important to watch broader economic factors, particularly interest rates, which could influence affordability and buyer behavior. If interest rates continue their downward trend, we may see a further uptick in buying activity.

In conclusion, Santa Clara County’s real estate market remains strong, with healthy inventory levels, rapid sales, and ongoing price appreciation.

Whether you are a buyer looking to enter the market, a seller considering listing your home, or simply want insights into your specific neighborhood, staying informed is key to making the right decisions in today's dynamic market.