Is Now the Perfect Time to Buy in the South Bay? Here's What 33 Days on Market Really Means for Buyers
The South Bay real estate market is sending mixed signals in late 2025, and if you're a potential buyer, you're probably wondering what it all means for your homebuying timeline and strategy. With homes currently spending about 33 days on market, we're seeing a notable shift from the lightning-fast sales of recent years: but what does this actually mean for your buying power?
Understanding the 33-Day Market Reality
When we talk about "days on market," we're measuring the time from when a home is first listed until it goes under contract. The current 33-day average in the South Bay represents a significant change from the 10-15 day averages we saw during peak seller's market conditions in 2021-2022.
This shift doesn't mean the market is cooling dramatically: it means it's finding a new rhythm. For buyers, this translates to real opportunities that simply didn't exist two years ago.
What This Timeline Means for Your Buying Strategy
More Time to Make Informed Decisions
Unlike the frenzied bidding wars of recent memory, you now have breathing room to:
- Schedule thorough home inspections
- Research neighborhood comps more carefully
- Consider multiple properties before making offers
- Negotiate repairs and closing costs
This additional time is particularly valuable in the South Bay, where home prices still average between $1.4-1.9 million depending on the specific area and property type.
Competition Levels by Price Range
The 33-day average tells only part of the story. Market dynamics vary significantly by price point:
Under $1.7M: Still competitive with multiple offers common. Expect 20-25 days on market.
$1.7M to $4M: More balanced conditions. The full 30-35 days gives buyers genuine negotiating power.
Over $4M: Buyer's market territory. Some properties sit for 45+ days, creating real leverage for negotiations.
Current Market Conditions: The Full Picture
Inventory Trends
Inventory levels have increased by 23% compared to early 2025, though we're still running 16% below pre-pandemic levels. This means:
- More choices for buyers than in recent years
- Still limited enough supply to maintain price stability
- Regional variations with some neighborhoods offering better selection
Pricing Dynamics
Homes are selling at approximately 99.3% of list price on average: a subtle but important indicator that sellers are pricing more realistically. This is a significant change from the over-asking bidding wars that dominated 2021-2023.
The Interest Rate Factor
With mortgage rates hovering around 6.6%, the days of 3% financing are behind us. However, this rate environment is creating unique opportunities:
Reduced Buyer Competition
Higher rates have naturally filtered out some buyers, particularly those stretching their budgets. This means less competition for well-qualified buyers who can afford current payment levels.
Motivated Sellers
Sellers who need to move are more willing to negotiate on price, repairs, and closing costs than they were when every listing generated bidding wars.
Geographic Variations Within the South Bay
The 33-day average masks significant local variations:
Peninsula Cities (Palo Alto, Mountain View, Menlo Park): Often moving faster due to tech industry demand: closer to 25-28 days.
South Bay Proper (San Jose, Santa Clara, Sunnyvale): Right around the 33-day average, with good inventory selection.
Coastal Areas (Half Moon Bay, Pacifica): Longer days on market, sometimes 40+ days, especially for higher-priced properties.
Understanding these micro-markets is crucial for timing your search and setting realistic expectations.
Timing Your Purchase: Seasonal Considerations
December 2025 presents unique timing advantages:
Winter Market Benefits
- Less competition from other buyers
- Motivated sellers who want to close before year-end
- Better negotiating position on repairs and contingencies
- More time for thorough due diligence
Spring 2026 Outlook
Market experts anticipate continued 3-4% price appreciation through 2026, meaning waiting for lower prices may not be a winning strategy. The current 33-day market may actually represent a "sweet spot" of opportunity.
What Buyers Should Do Right Now
Financial Preparation
Get pre-approved with multiple lenders to ensure you're working with the best rates available. In today's market, having financing locked down is still crucial, even with extended timelines.
Market Research
Use the additional time to thoroughly research neighborhoods, school districts, and future development plans. Our buyers' reports provide detailed neighborhood insights that can help you make informed decisions.
Professional Team Assembly
With more time in the process, ensure you have experienced professionals on your team: inspectors, attorneys, and lenders who understand South Bay market dynamics.
Red Flags to Watch For
Properties Sitting Too Long
If a home has been on the market significantly longer than 33 days, investigate why. It could indicate pricing issues, property problems, or seller inflexibility.
Rapid Price Reductions
Multiple price drops often signal underlying issues beyond simple overpricing.
The Bottom Line: Is Now the Right Time?
The current South Bay market offers the best buying conditions we've seen since 2019. The 33-day average on market creates a window of opportunity that balances reasonable competition with genuine choice.
For qualified buyers, this timing offers:
- More inventory than recent years
- Time for proper due diligence
- Negotiation opportunities that didn't exist during peak seller's market conditions
- Realistic pricing from sellers
However, waiting for dramatically lower prices or significantly lower interest rates may mean missing this balanced market window. Economic forecasts suggest continued modest appreciation and stable-to-higher interest rates through 2026.
The key is working with experienced professionals who understand current market dynamics and can help you navigate the process efficiently. Whether you're a first-time buyer or looking to move up, the current 33-day market timeline provides the space to make thoughtful decisions while still securing your South Bay home before the next wave of appreciation.
Visit our market analysis page for the most current data and trends, and remember: in real estate, timing isn't just about market conditions, it's about your personal readiness to take advantage of the opportunities available today.
