Silicon Valley and Tech Corridor Housing Market, A 4-County Analysis | Q3 2025
Feb 27, 2026
Silicon Valley's Housing Market: What 4 Counties Reveal About the Tech Economy | Q3 2025
In the third quarter of 2025, Silicon Valley's housing market told a synchronized story — and the data reveals something most real estate agents are not discussing.
California real estate broker Pat Kapowich analyzed MLS data across four interconnected counties: Santa Clara, San Mateo, Alameda, and Santa Cruz. These four counties share one common thread: the Silicon Valley tech economy. When these markets move together, they are telling us something important.
What the Q3 2025 Data Shows
All four counties saw price declines, longer days on market, and sale-to-list ratios compress — in the same quarter, at the same time. That is not coincidence. That is the tech economy speaking through housing data.
Santa Clara County posted the steepest decline — median price dropped 10% from $2,120,000 in the second quarter of 2025 to $1,900,000 in the third quarter. Days on market averaged 25. Sale-to-list ratio: 103%. A total of 2,161 single-family homes closed — down 11% from the prior quarter. Price per square foot: $1,176.
San Mateo County median came in at $1,925,000 — down 6% from $2,050,400. Days on market: 27. Sale-to-list ratio: 103%. Closed sales: 1,039 — down 7%. Price per square foot: $1,190, the highest of all four counties.
Alameda County offered the most competitive market despite cooling conditions. Median price: $1,250,000 — down 6% from $1,330,000. Days on market: 28. Sale-to-list ratio: 105% — the highest of all four counties, meaning homebuyers were still competing. Closed sales: 2,083 — down 4%. Price per square foot: $742.
Santa Cruz County told a different story within the same economy. Median price: $1,304,217 — down just 1%. Days on market: 41, the longest of all four counties. Sale-to-list ratio: 99% — the only county below 100%, meaning homes sold slightly below asking price. Closed sales: 403 — actually up 4%, the only county where volume increased. Price per square foot: $851.
Combined, 5,686 single-family homes sold across 4.6 million residents in a single quarter.
Why These Four Counties Move Together
Santa Clara County is Silicon Valley's heart — Apple, Google, Nvidia, Intel, Cisco. San Mateo County is the Peninsula — Meta's global headquarters, Sand Hill Road venture capital. Alameda County is the East Bay tech corridor — where tech workers find more space at $742 per square foot versus $1,176 on the Peninsula. Santa Cruz County is the tech bedroom community over the hill — Netflix started in Scotts Valley, UC Santa Cruz feeds the tech pipeline, and thousands commute Highway 17 daily.
When tech expands, all four feel it. When tech cools — as it did in the third quarter of 2025 — all four feel that too.
What This Means for Homebuyers and Home Sellers
For home sellers: price accurately from day one. The era of radical under-pricing to spark bidding wars is ending. Price your home where the market actually is, not where you wish it were. Prepare it properly. Expect reasonable negotiations.
For homebuyers: this is your moment to be thoughtful instead of desperate. The 99% to 105% sale-to-list ratios tell you homes are trading near asking — not wildly above it. Use your inspections. Negotiate repairs. Make contingent offers.
This is still a seller's market. But the temperature is dropping.
About Pat Kapowich
Pat Kapowich is a California real estate broker (DRE #00979413) and Certified Real Estate Brokerage Manager (CRB) with decades of Bay Area experience. He has written the "Market Wise" real estate advice column for the Mercury News and Bay Area News Group publications since the 1990s. He represents homebuyers and home sellers across Silicon Valley and the broader Bay Area.
š 408-245-7700 š§ pat@siliconvalleybroker.com š SiliconValleyBroker.com
Data sources: MLSListings MLS Reports, November 1–14, 2025. This is Video 1 of 3 in the Q3 2025 Regional Analysis Series.
