After a year marked by climbing interest rates and falling home prices in 2023, 2024 turned out to be something of a bounce back year in the Peninsula real estate market. With inflation under control for most of the year, mortgage rates in turn remained mostly stable, coming down slightly from the 20+ year highs we saw in 2023. This, coupled with a resilient Bay Area economy, brought more home buyers back to the market in 2024.

In San Mateo County, the median sales price closed out at $1,950,000, up 8.2% from $1,802,500 the year prior. And in Santa Clara County prices jumped to $1,900,000, up 9.4% from $1,737,500 in 2023. This comes after losses of 5.1% and 0.7% in San Mateo & Santa Clara counties respectively the year prior.

After briefly peaking at just over 7.75% in October ‘23, rates quickly fell back below 7 and stayed there for most of 2024, closing the year out at 6.91%, per Freddie Mac data. With concerns about inflation lingering, it seems unlikely rates will fall much further this year. Most current projections show rates staying between 6-7% all year. While this may not move the needle much on affordability, it would at least provide some stability/predictability in the market for those considering their next move.
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