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San Mateo 2026 January Market Update

In 2025, Bay Area real estate markets started the year seeing strong buyer demand, but had the wind taken out of their sails by the political/economic uncertainty that soared in early spring. Then, in midlate summer, stock markets rebounded to hit new highs, and interest rates began a sustained decline, initiating a shift in the psychology of buyers and sellers that is still developing. Still, national consumer confidence readings showed a significant split between the outlooks of more and less affluent households, and that affected market segments in different ways. Generally speaking, more expensive markets, powered by rising demand from affluent buyers seeing substantial increases in household wealth from stock market gains, performed better than more affordable markets, which tended to be more impacted by concerns regarding inflation, affordability and employment. San Mateo County contains many of the most affluent cities in the country. Most of the analyses in this report focus on annual statistics, which summarize a year of rapidly changing economic conditions. Continuing to be fueled by the AI boom, San Mateo County remains one of the strongest markets in the Bay Area. Its median house sales price hit a new high in 2025, though, as in many counties, its median condo price declined. Overall, as measured by a range of standard indicators, the 2025 real estate market was not radically different from 2024. As 2026 begins, interest rates are near multi-year lows and stock markets are at or close to all-time peaks. Early in the new year, it is common for buyers, re-energized to move forward with major life decisions, to jump back into the market faster than sellers list their homes for sale. This disparity of increasing demand versus a low supply of new listings usually runs through the spring, typically making these months the most heated selling season of the year. Last year, this was upended by the tariff shock. Barring new, unexpected economic alarms, we expect this spring to be much stronger. This report includes an image link to our review of city and town home values and market dynamics.