SIlicon Valley Housing Market Trends

The Local Lowdown

Quick Take:

• Single-family home prices showed mixed results in January, with San Mateo and Santa Cruz Counties posting year-over-year gains while Santa Clara County saw a slight decline.

• Inventory remains limited, with single-family home supply still down about 12% year-over-year, despite a strong rebound in new listings.

• Condos are taking significantly longer to sell, with days on market rising more than 50% in several counties across the region.

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

A mixed start to the year across Silicon Valley

The single-family home market across Silicon Valley is beginning the year with varied performance depending on the county.

San Mateo County saw solid growth, with the median single-family home selling for $1,875,000, representing a 4.46% increase year-over-year. Santa Cruz County also posted gains, with the median home price reaching $1,237,500, a 3.21% increase compared to last January.

However, Santa Clara County experienced a slight pullback, with the median single-family home selling for $1,730,051, reflecting a 3.89% year-over-year decline.

The condo market showed broader softness across the region. San Mateo County condos declined 8.24% year-over-year, bringing the median price to $780,000. Santa Clara County condos fell 2.52% to $755,000, while Santa Cruz County condos dropped 7.85% to $692,500.

Overall, this reflects a continued divergence between the single-family and condo segments of the Silicon Valley market.

Inventory remains limited despite a surge in new listings

After the typical slowdown during the holiday season, the market saw a strong wave of new listings in January.

New single-family home listings jumped 136.57% month-over-month, bringing fresh inventory to the market. Even with this increase, however, the total number of available homes remains lower than last year.

Currently, there are 1,100 single-family homes for sale across Silicon Valley, representing a 12% decline compared to January of last year.

The condo market shows a similar trend. There are 537 condos currently available, which is 11.68% lower year-over-year.

While the recent increase in new listings is encouraging, inventory levels remain relatively tight, continuing to create challenges for buyers searching for the right property.

Condo sales are slowing significantly

Another notable trend across Silicon Valley is the longer time it is taking for condos to sell.

In Santa Clara County, the average condo now spends 55 days on the market, representing a 57.14% increase compared to last year. Santa Cruz County condos are taking even longer, averaging 67 days on the market, more than double the time seen in January of last year.

San Mateo County condos are also taking longer to sell, with days on market increasing 36.59% to an average of 56 days.

Single-family homes, on the other hand, are still moving relatively quickly.

• San Mateo County: 17 days on market (up 6.25%)

• Santa Clara County: 14 days on market (up 16.67%)

• Santa Cruz County: 45 days on market (up 40.63%)

While these increases are noticeable, single-family homes remain much more active compared to the condo market.

Silicon Valley remains a seller’s market

One of the most commonly used indicators for market conditions is Months of Supply Inventory (MSI). Historically, California averages around three months of inventory, which represents a balanced market.

• Less than three months typically signals a seller’s market

• More than three months indicates a buyer’s market

Despite some shifts in pricing and sales pace, Silicon Valley remains firmly in seller’s market territory, particularly for single-family homes.

• San Mateo County: 0.9 months of inventory

• Santa Clara County: 0.9 months of inventory

• Santa Cruz County: 2 months of inventory

The condo market offers slightly more balance for buyers, with:

• San Mateo County: 2.1 months of inventory

• Santa Clara County: 2.4 months

• Santa Cruz County: 3.3 months

Even so, inventory across the region continues to remain relatively limited compared to demand.

Bottom Line

The Silicon Valley housing market is entering 2026 with a mix of trends. Single-family homes continue to see strong demand and relatively tight inventory, while the condo market is experiencing softer pricing and longer selling times.

For buyers, the condo segment may present more opportunities and negotiating room, while single-family homes remain highly competitive. For sellers, limited inventory continues to support market conditions—especially for well-priced homes.

As we move closer to the spring selling season, the key factor to watch will be whether the recent surge in new listings continues and how quickly the market absorbs that additional inventory.