March 2025 Real Estate Market Update
Santa Clara County, California
Introduction
Hey everybody, Dominic Nicola here with your March 2025 real estate update. I want to get you guys updated – can't believe it's already March! It feels like we were just in the holidays, and now I'm excited to share the latest goings-on in Silicon Valley.
Sales & Pending Sales
- Sales on the Rise: The theme of this month's update is clear – sales are up. We've seen an impressive increase of about 55% from where they were last month at this time.
- Closed Sales: We ended February with 449 closed sales versus 347 at the end of January, which marks a 29% increase.
- Pending Sales: Pending sales have surged by 55%, rising to 570 from 367 the previous month. This shows that buyers are out in force, reinforcing the strength of the market.
Active Listings & Inventory
- Active Listings: Active listings are up by 38%. However, despite this increase, inventory remains incredibly low.
- Inventory Snapshot: Out of 400,000 homes for sale, only about 1 in every 412 homes is on the market. In Santa Clara County, that translates to a total of 973 out of 4,400,000 single family homes currently for sale.
Why the Low Inventory? Many homeowners are hanging on to their low mortgage rates from previous years – they’re reluctant to give up a 3% mortgage for a new 6.5% rate, which makes a significant difference in monthly payments.
Mortgage Rates & Home Pricing
- Mortgage Rates: Mortgage rates are currently around 6.5%, a slight decrease from approximately 7% last month. With the new administration taking shape and regulations expected to simplify, there's optimism that these rates could drop further.
- Average Sales Price & Market Dynamics: The average sales price in the county is just under $2.3 million. Homes are selling fast – averaging about 15 days on the market. The absorption rate indicates that if no new homes came on the market, the existing inventory would sell in about 2 months. This short supply is driving the current market dynamics.
Market Trends & Future Outlook
Looking ahead, there is strong potential for significant price increases. Many pending sales are already showing sales prices that are 10-15% higher than last year. However, remember that sales prices are reported 30 to 45 days after closing, so the data lags slightly behind real-time market movements.
While national real estate trends may seem slow, Silicon Valley is uniquely driven by high tech and the NASDAQ. Our local market remains robust despite broader national trends.
Get in Touch
If you're thinking of selling, feel free to give me a call. I'm happy to come out, provide a market evaluation specific to your area, and help you get your home positioned for sale at the right time. Stay tuned for our next update in March and April – we'll likely have more strong pricing updates to share.
Thanks so much for watching, and I hope to talk to you soon!
