Peninsula real estate professionals who weighed-in on this spring’s homebuying season include: Top row, from left to right, Kathy Van, John Young, Dana Rae Stone; second row, from left to right, Tom LeMieux, Diane Kneis; third row, from left to right, Lisa Lui, Elyse Barca, Alexander Lewicki; bottom row, from left to right,Tori Atwell. Julie Alsaegh, Mercedes Rosas.
The spring homebuying season, which usually starts to ramp up in January and keep its momentum going into June, marks the busiest and most competitive time of the year on the Midpeninsula. So what does this mean for house hunters as we head into the peak of the season? Eleven industry leaders specializing in the Midpeninsula housing market shared their perspectives on which markets have the most inventory, where to find entry-level homes, what kind of competition to expect and how buyers can increase their chances of becoming a homeowner. Their responses have been lightly edited for length and clarity.
Will there be less competition for Peninsula homebuyers in 2025?
“So far, it is not looking like there will be less competition in 2025. The inventory supply still can’t satisfy the demand, buyers have adapted to the higher rates, and the ones who have lost stock money for their down payment have pivoted in ways that still enable them to buy.”
– Julie Alsaegh, real estate agent, Compass
“Yes, there will be less competition for buyers. Properties that a year ago were getting five to seven offers are getting two to three offers. And properties that are perceived as being overpriced by buyers take longer to sell and sell for less than a year ago.”
– Tori Atwell, broker associate, The Agency
“With the current economic uncertainty, anything could change, but the trends are for inventory to remain low and prices to slowly rise (driven by the disparity between jobs we create and houses we create). This makes it competitive to be a buyer.”
– John Young, Realtor, Sotheby’s International Realty
“Factors like interest rates and housing supply typically influence competition levels. However, even when there are fewer people competing, you can expect the interested parties to come well-prepared. It’s not unusual to see very competitive offers on houses in the Midpeninsula.”
– Lisa Lui, real estate agent, Compass
“It’s a bit too early to tell, but so far we have seen stronger competition among buyers this year than in the last several years. At the moment, with construction costs continuing to rise, homes that are well-priced and in move-in ready condition are receiving multiple offers and selling quickly. That could change with increased volatility in the stock market, but with interest rates declining and external pressures such as back-to-office mandates affecting our tech workers, I think it’s likely that buyer competition continues its upward trend.”
– Alexander Lewicki, buyer specialist, DeLeon Realty
“The Midpeninsula/Silicon Valley market has more buyers than sellers. While inventory is increasing, the demand is still greater than the supply. It is anticipated that unit sales will be up this year 10% to 15% in Silicon Valley … The ‘wild cards’ are inflation and interest rates.”
– Elyse Barca, real estate agent, Compass
Will there be more overall inventory to choose from on the Midpeninsula this year?
“While there’s potential for a slight increase in available homes, a significant jump in inventory is unlikely. Desirable areas with limited housing will probably remain competitive, even if more listings appear.”
– Kathy Van, real estate agent, Compass
“This will depend on how the economy and financial markets unfold over the next few months. Our real estate market is efficient and self-correcting, as many of our homeowners are elective sellers who may wait it out if they feel buyer demand shift. I’m hopeful that lower interest rates coupled with a seemingly growing sentiment from buyers that real estate may be a more stable place to hold your assets over the next several years, will keep demand strong. In turn, that should keep sellers feeling optimistic that 2025 remains a good time to sell your home.”
– Alexander Lewicki, buyer specialist, DeLeon Realty
“I believe there may be more inventory to choose from. When the rates adjust a bit, sellers who need to downsize or move out of the area will move knowing there is a bigger buyer pool to purchase their home.”
– Mercedes Roses, real estate agent, Compass
“We’re expecting slightly more inventory than last year as interest rates stabilize and some homeowners feel more confident about listing. That said, we’re still far from normal supply levels, so buyers will need to stay sharp and move quickly when the right home hits the market.”
– Diane Kneis, real estate agent, Compass
In which markets and price points are you seeing the most new listings?
“Within the last 30 days (February- March), the most single-family inventory (out of 297 new listings) has popped up in Redwood City, San Carlos and San Mateo. The most active price points in San Mateo County this spring are $1 million to $1.5 million properties (78 listings) and $2 million to $3 million (56 listings) properties. There also were 37 new listings over $5 million.”
– Julie Alsaegh, real estate agent, Compass
“Inventory across the board is increasing in most cities and property types. With many properties taking longer to sell, and new properties hitting the market, the inventory is increasing. We do still get multiple offers on properly priced properties, but the overbids are not as much as recent years.”
– Tori Atwell, borker associate, The Agency
“New listings are quite evenly spread around. Sellers leave for major life events — births, deaths, marriages, jobs — and we’re seeing a lot of local buyers instead of overseas investors these days.”
– John Young, Realtor, Sotheby’s International Realty
“In February, San Mateo had 53 new single-family home listings, making it the city with the most new listings for the month in all of San Mateo County. With a median sale price of around $2 million, San Mateo offers a more accessible entry point compared to other Midpeninsula cities, making it an attractive option for both first-time homebuyers and investors … With a median sale price of $3.82 million and an average cost of $2,025 per square foot, Palo Alto has solidly established itself in the luxury housing market, appealing to buyers seeking upscale homes.”
– Lisa Lui, real estate agent, Compass
“Santa Clara County as a whole has seen an uptick in inventory this year, likely due to savvy sellers recognizing the heavy buyer demand from the tech sector’s concentration farther south. Los Altos has felt particularly strong, with a 27% increase in inventory of single-family homes compared to last year, much of which is in the $4.5-$5.5 million range. Palo Alto has seen a lesser increase of 17% year-over-year, with a similar trend of the bulk of the inventory being in the $3.5 – $4.5 million range. San Mateo County, on the other hand, has seemingly had its inventory decline, with cities such as Menlo Park seeing an 18% decrease in single family homes from last year.”
– Alexander Lewicki, buyer specialist, DeLeon Realty
“The highest number of sales occur within the median price points, which in our Midpeninsula area typically falls within the $2 million to $4 million price range. We see more inventory in this sector, and this is also the most competitive price range as there is a broader range of buyer affordability versus the higher price points.”
– Tom LeMieux, real estate agent, Compass
How can Peninsula house hunters prepare to buy this spring season?
“Be realistic. A buyer’s budget and ‘must haves’ need to match their search, otherwise, they’re looking for a needle in a haystack, and they’ll always be disappointed.”
– Julie Alsaegh, real estate agent, Compass
“Serious house hunters should consider various ways to make their offers as strong as possible such as obtaining a fully underwritten, pre-approval letter from their lender – or offering all cash (if feasible) – offering a short close of escrow and, if they feel comfortable, minimizing or eliminating contingencies.”
– Dana Rae Stone, real estate agent, Compass
“Cash remains king, so having an all-cash offer or a larger down payment can significantly increase your chances in a competitive bidding situation.”
– Lisa Lui, real estate agent, Compass
“We have a faster market cycle than most areas of the country. The median days on market in Menlo Park in 2024 was just 12 days. In addition, about 20% of the total sales are not publicly listed. This is why most buyers find it to their advantage to align themselves with a real estate professional that best knows the local neighborhoods.”
– Tom LeMieux, real estate agent, Compass
“House hunters should be prepared to move quickly and work with a local agent and have fully vetted pre-approval. Being prepared to move quickly is a must. Desirable homes don’t stay on the market long. Having early knowledge of new listings can be very helpful, but not always easy to obtain.”
– Elyse Barca, real estate agent, Compass