Some of the most common questions I’ve heard about this summer’s market are “Where are we now?” and “Where are we headed?” As your South Bay real estate insider, here is a brief recap of recent activity:
Days On Market (DOM) Up, Competition Down.
After a spring season of high demand—when homes moved very quickly and many saw a bidding war—summer marks a slower time, bringing some relief to buyers. The biggest shift we see now is homes lingering on the market much longer. Los Gatos (95032) median DOM jumped from 14 days in April to 70 days mid-July, then fell to 49 days this August. In Willow Glen and Campbell, market time increased from one to two weeks in April to 42 days this August.
Inventory Down, But Prices…?
While inventory is up nationally, active listings in Santa Clara County have been slowly ticking down since June. In fact, local active listings totaled 1,884 in August’s first week, which is quite a drop from May’s peak of 2,173. And although this is 28% higher than a year ago, month’s supply of inventory is holding steady at 1.8 months. This keeps upward pressure on pricing, with prices continuing to rise in some areas even despite flat demand.
Throughout Campbell, Willow Glen, and Los Gatos, inventory has remained relatively level all summer. With up to 36% of listings in these neighborhoods experiencing price reductions, buyers have an opportunity now to get a home without overbidding or battling against so many other offers.
Our Local Markets, At A Glance.
- Willow Glen (95125) | 66 homes for sale
- Campbell (95008) | 29 homes for sale
- Los Gatos (95032, 95030) | 67 homes for sale
July’s home prices in Campbell and Los Gatos were up approximately 10% from a year ago, while Willow Glen’s median sales price July-to-July was down 5%. On average, homes are still selling at or around their list price, but with longer time on market.
What’s Next?
Buyers and sellers are still finishing summer vacations, kids are getting back to school, and all are awaiting lower interest rates this fall. Once (and if) a rate drop happens, buyers will jump back in the market, and we’ll see a slight increase in inventory (which is usual in September and October). Prices will likely tick up as a result.
Have questions about how to make your best move in our dynamic market? Please reach out and let’s discuss the best strategy for selling or buying—or both—in the second half of 2025! If you haven’t already, subscribe here for my newsletter (including the most recent market trends) sent straight to your inbox.
