As we enter Spring 2025, the Bay Area real estate market is showing signs of transition. While some neighborhoods are still experiencing competitive bidding and fast-moving listings, others are seeing a cooling trend. This reflects a broader balancing of the market as high interest rates and economic headwinds impact both buyer and seller behavior. Here's a detailed, hyper-local look at what's happening across the Peninsula—specifically in San Bruno, San Mateo, Millbrae, Menlo Park, Redwood City, Burlingame, and Belmont.
Market Overview
Across the Bay Area, median home prices have softened slightly from last year. In San Francisco, for example, the median price declined by 6.4% year-over-year, while San Mateo County saw only a slight dip of 0.8%, suggesting relatively stronger resilience in Peninsula submarkets (1).
Inventory levels have increased in many areas, giving buyers more options, but sales are taking longer to close compared to last year—an indication that the intense seller’s market of 2021–2022 is beginning to ease.
Meanwhile, mortgage rates remain high, with 30-year fixed rates hovering around 6.5% as of spring 2025, continuing to dampen buyer affordability and suppress demand (2).
Overall, the market is transitioning toward a more balanced state—neither distinctly a buyer’s nor a seller’s market, but one that demands careful strategy from both sides.
County-by-County Breakdown
San Bruno
San Bruno has seen a substantial correction this spring, with the median sale price dropping to approximately $1.3 million—a steep 32.9% decline from last year. Despite this significant dip, the market here remains active, with homes typically selling within 15 days. This suggests that while prices are adjusting downward, buyer demand persists, possibly driven by San Bruno’s relative affordability compared to neighboring cities (Redfin).
San Mateo
San Mateo stands out with a median sale price of around $1.6 million, marking a modest increase of 3.6% year-over-year. Homes are spending slightly more time on the market than they were last spring, but they are still moving at a steady pace. This indicates that demand remains strong, though tempered, as buyers become more selective in the face of higher borrowing costs (3).
Millbrae
Millbrae has experienced a notable correction, with the median sale price now around $1.33 million—a sharp 32.9% drop compared to last spring. Despite this decline, homes in Millbrae continue to sell quickly, typically within 15 days. The combination of falling prices and fast sales suggests that Millbrae is seeing price-sensitive buyers who are ready to move quickly when a good value appears (4).
Menlo Park
Menlo Park remains one of the more competitive markets on the Peninsula. Homes here are typically selling in about 16.5 days, and many continue to attract multiple offers and sell above the listing price. While exact pricing data for this spring isn't available, the speed of sales and buyer behavior indicate that Menlo Park’s desirability—driven by proximity to major tech employers and excellent schools—continues to support a strong seller’s market (5).
Redwood City
While detailed pricing data for Redwood City was not available at the time of writing, the market remains active. Homes are continuing to sell at a relatively brisk pace, and demand appears stable. Buyers here are often looking for more space at slightly lower prices than Menlo Park or Palo Alto, which sustains consistent interest even as rates stay high.
Burlingame
Burlingame’s housing market remains highly competitive. Homes are selling quickly—with a median of just 12 days on the market—and many are going for over the asking price. This is driven by continued demand for Burlingame’s walkable neighborhoods, good schools, and access to transit. The fast pace of sales indicates that serious buyers are still willing to act decisively when the right property hits the market (6).
Belmont
Belmont has remained relatively stable, with a median home price of around $2.4 million—a slight year-over-year decrease of 1.0%. What stands out is the speed of sales: homes are typically selling within just 8 days, and many are still selling above list price. This suggests that, despite high prices, well-located properties in Belmont continue to attract aggressive offers from well-qualified buyers (7).
Outlook for Spring 2025
Looking ahead, the Bay Area real estate market is likely to remain mixed. On the one hand, increased inventory and price correction in cities like Millbrae and San Bruno create opportunities for buyers. On the other hand, demand remains string un core cities such as Millbrae and Menlo Park, where the best properties still attract multiple offers. For sellers, pricing correctly is more important than ever.
Thinking about buying or selling this spring? Let Heckenberg Realty guide you through the Bay Area's dynamic market with local insight and proven results. Contact us today for a free consultation.
