Silicon Valley Housing Market Insights

The Local Lowdown

Quick Take:

• Single-family home prices rebounded across much of Silicon Valley in December, led by nearly 10% year-over-year growth in San Mateo County.
• Inventory levels have dropped to some of the lowest we’ve seen in years, with single-family home supply down more than 21% compared to last year.
• While most homes are still moving quickly, Santa Cruz County listings are taking noticeably longer to sell as buyers move more thoughtfully.

Note: You can find the charts and graphs for the Local Lowdown at the end of this section.

A strong finish to the year across Silicon Valley
After November’s brief slowdown, the Silicon Valley single-family home market regained momentum to close out 2025. San Mateo County led the rebound, with median sale prices rising 9.74% year-over-year to $1,887,500. Santa Clara County remained largely stable, with a slight 0.55% year-over-year dip bringing the median price to $1,800,000. Santa Cruz County also held steady, posting a modest 0.79% increase and a median price of $1,270,000.

The condo market showed more varied results. San Mateo County condos saw a small year-over-year decline of 3.84%, while Santa Clara County experienced a 1.71% increase. Santa Cruz County stood out with strong condo appreciation, posting a 10.48% year-over-year gain. These mixed outcomes reflect how localized demand continues to shape pricing trends across Silicon Valley.

Inventory reaches critically low levels heading into 2026
As we move into the new year, inventory across Silicon Valley has tightened significantly. Single-family home supply fell 43.01% month-over-month and 21.02% year-over-year, leaving just 823 homes available across the region. This marks one of the tightest inventory environments in recent years and represents a sharp shift from the buildup seen during the summer months.

The condo market has followed a similar pattern, with inventory down 33.04% from the previous month and holding relatively flat year-over-year. With limited options available, buyers will need to stay prepared and decisive as new listings come to market.

Santa Cruz sees longer selling timelines despite limited supply
Even with inventory at historic lows, not all areas are experiencing rapid sales. Santa Cruz County single-family homes are now taking significantly longer to sell, averaging 43 days on market — a 65.38% increase compared to last year. In contrast, San Mateo and Santa Clara Counties continue to see quick movement, with homes selling in just 18 and 14 days respectively, though both represent slight year-over-year increases in selling time.

The condo market presents a mixed picture. San Mateo and Santa Clara County condos are taking marginally longer to sell, while Santa Cruz County condos are moving faster than last year, with a 16.13% decrease in days on market. These trends highlight how buyer behavior varies by location and property type, even within a tight inventory environment.

Silicon Valley remains firmly in seller’s market territory
Market balance is typically measured using Months of Supply Inventory (MSI), with about three months considered balanced. Anything below that level indicates a seller’s market, while higher levels favor buyers.

With inventory continuing to shrink, Silicon Valley has moved deeper into seller’s market conditions. San Mateo and Santa Clara Counties each have just 0.6 months of single-family home supply, signaling intense competition for available properties. Santa Cruz County, while slightly more balanced, has also tightened to two months of supply.

The condo market offers slightly more flexibility, with 1.7 months of supply in San Mateo County, 2.1 months in Santa Clara County, and 3.2 months in Santa Cruz County. Even so, with demand remaining steady and inventory limited, buyers should expect continued competition as we head into the spring market, while sellers remain in a strong strategic position.

Local Lowdown Data