September 2025 Update: Housing Market Trends in San Mateo County - What First-Time and Move-Up Buyers Need to Know

August 2025 has brought a fresh wave of activity to the San Mateo County housing market, and both first-time buyers and move-up buyers are feeling the impact. The landscape is dynamic, with shifting prices, evolving inventory, and new challenges—and opportunities—for anyone hoping to make a move.

Market Snapshot: A Balancing Act
This fall, San Mateo County is experiencing a market that’s neither blazing hot nor ice cold. Home prices have seen modest growth compared to last year, but the pace has slowed, giving buyers a bit more breathing room. Inventory has ticked up, especially in the mid-range and entry-level segments, as more homeowners decide it’s time to sell and move up.

First-Time Buyers: A Window of Opportunity
For those entering the market for the first time, there are reasons to be optimistic. Slightly higher inventory means more choices and less competition for each home. Mortgage rates remain steady, though not as low as pandemic-era lows, and creative financing options are helping more buyers get into their first homes. However, affordability remains a challenge, so being prepared, pre-approved, and flexible on must-haves is key.

Move-Up Buyers: Timing the Transition
Move-up buyers—those looking to sell their current home and purchase something larger or in a different neighborhood—are in a unique position. With increased demand for starter homes, sellers can often fetch strong prices for their properties. At the same time, the slightly slower pace at the higher end means there’s more room to negotiate on your next home. The trick is coordinating both transactions smoothly, which makes working with an experienced local agent crucial.

What’s Driving the Market?
Several factors are shaping the market this September:

• The tech sector remains a major employer, but more companies are embracing hybrid work, affecting where buyers want to live.
• Interest rates are stable, but buyers are watching for any changes from the Federal Reserve that could impact affordability.
• San Mateo’s schools and community amenities continue to attract families, keeping demand steady in family-friendly neighborhoods.

Tips for Buyers This Fall

• Get pre-approved for a mortgage before you start shopping.
• Work with a local agent who understands the nuances of San Mateo’s neighborhoods.
• Be ready to act quickly, but don’t be afraid to negotiate—especially on homes that have been on the market a few weeks.
• If you’re selling and buying, have a plan in place for timing your transactions.

Looking Ahead
As we move toward the end of 2025, keep an eye on inventory levels, interest rate trends, and any shifts in local employment. The San Mateo County market continues to offer opportunities for both first-time and move-up buyers who are prepared and informed.