Santa Clara County Real Estate Market Update: February 2025

By Michael Rulfs, REALTOR®

Market Overview: Signs of an Early Spring

February 2025 has brought notable shifts to the Santa Clara County housing market, with early indicators suggesting we may be in for an active spring season. This month’s data reveals faster sales, increasing inventory, and continued price appreciation—creating both opportunities and challenges for buyers and sellers.

Key Statistics for Single-Family Homes

373 Homes Sold: We’ve seen a 11.3% increase from January’s 335 sales, though still trailing behind February 2024’s 415 transactions. This upward monthly trend suggests improving market activity as we enter the traditionally busy spring season.
15 Average Days on Market: Properties are moving significantly faster than in January (28 days) and even quicker than February of last year (19 days). This acceleration indicates strong buyer demand and competitive bidding situations for well-priced homes.
627 Homes for Sale: Available inventory has increased substantially—up 51.4% from January’s 414 listings and 40.3% higher than the 447 homes available in February 2024. This expanding selection provides more options for buyers who have been frustrated by limited choices.
$1,220 Average Price per Square Foot: Pricing continues its upward trajectory, rising from $1,157 in January and showing a healthy 8% year-over-year increase from $1,130 in February 2024. This persistent appreciation reflects the region’s strong economic fundamentals and ongoing housing demand.

What This Means for Sellers

If you’re considering selling your Santa Clara County property, current conditions present several advantages:

Accelerated Sales Cycle: With homes selling in just over two weeks on average, you may experience a shorter period of showings and market disruption to your daily life.
Continued Price Appreciation: The steady increase in per-square-foot pricing suggests ongoing demand and potential for strong offers, particularly for well-maintained, move-in ready properties.
Strategic Importance of Proper Pricing: Despite favorable conditions, the expanding inventory means buyers have more options. Working with an experienced agent to set the right initial price point remains crucial for maximizing your return.

What This Means for Buyers

For those looking to purchase a home in Santa Clara County, February’s numbers highlight important considerations:

Improved Selection: With inventory up significantly, you’ll have more properties to consider than at any point in the past year—potentially reducing the pressure to make rushed decisions.
Persistent Competition: Despite more listings, the decreased days-on-market metric indicates properties are still moving quickly. Being prepared with pre-approval and decisive action remains essential.
Rising Cost of Waiting: The continued price appreciation trend suggests that delaying a purchase may mean paying more for similar properties in the coming months.

Neighborhood Variations

While county-wide statistics provide a valuable overview, it’s important to note that market conditions vary significantly across Santa Clara County’s diverse neighborhoods:

Premium Markets (Los Altos, Palo Alto, Saratoga): These areas continue to command the highest prices and often see the most competitive bidding situations.
Mid-Range Markets (Campbell, Santa Clara, parts of San Jose): These locations are experiencing some of the most balanced conditions, with healthy inventory growth but sustained buyer interest.
Entry-Level Markets: First-time buyer-friendly areas are seeing particularly strong demand as buyers try to enter the market before further price increases.

Looking Ahead: Spring Market Forecast

As we move deeper into 2025, several factors will likely influence our local market:

Interest Rate Environment: Any adjustments to mortgage rates will directly impact affordability and buyer demand.
Tech Sector Performance: The health of Silicon Valley’s major employers continues to be a significant driver of local housing demand.
Seasonal Patterns: We’re entering the traditionally active spring and summer months, which typically bring increased listing and sales activity.

Considering a Move?

Whether you’re thinking about buying or selling in Santa Clara County, today’s market requires careful strategy and local expertise. Every property and situation is unique, and I’m here to help you navigate these evolving conditions with personalized guidance.

If you’d like to discuss how February’s market trends might impact your specific real estate goals, or if you’re interested in a complimentary property valuation, please don’t hesitate to reach out.

Connect With Me

Michael Rulfs, REALTOR®
Coldwell Banker Realty
DRE #01832571
1712 Meridian Ave., San Jose, CA 95125
(408) 504-0385
Michael.Rulfs@cbrealty.com
RulfsRealEstate.com

Follow me for more updates: @michael_rulfs

Data reflects single-family home activity in Santa Clara County for February 2025. For information on condos, townhomes, or specific neighborhoods, please contact me directly.