Which Cities Made the Nice List?
Well, 2025 certainly kept us on our toes! As we ring in 2026, let's take a quick look at how December 2025 compared to December 2024, because nothing says "holiday spirit" quite like comparing median prices over eggnog!
December 2025 told a story of divergence across the Bay Area. Some neighborhoods boomed while others took a breather. Despite mortgage rates stubbornly hovering around 6.5-7% all year, buyers adapted and kept buying, proving that "waiting for perfect rates" is like waiting for perfect weather in San Francisco.
Number of Sales:
The Top Achievers
Redwood City stole the show with a whopping 50% increase in sales (28 → 42 homes sold)
Atherton saw a 40% jump (5 → 7 sales) – in ultra-luxury market, a few more sales can represent a good month
Santa Clara posted steady 4% growth (23 → 24 sales)
The Cool-Down Crews
Los Altos experienced the biggest decline at -42% (19 → 11 sales)
Los Altos Hills dropped -10% (10 → 9 sales)
Palo Alto, Mountain View, and Menlo Park all saw modest decreases of -5% to -6%
Here's where things get interesting. Despite mixed sales volumes, pricing told a completely different story:
Median Price
Best performance Group
Atherton: +146% ($5.68M → $13.98M) A jaw-dropping jump, likely due to a few mega-sales
Menlo Park: +27% ($2.8M → $3.55M)
Palo Alto: +22% ($3.4M → $4.15M)
Redwood City: +14% ($2.1M → $2.39M)
The Price Correctors Group
Los Altos: -11% ($5M → $4.45M)
Cupertino: -7% ($3.45M → $3.2M)
Sunnyvale: -13% ($2.52M → $2.2M)
Santa Clara: -1% ($1.9M → $1.876M) – essentially flat
December 2025 was generally slower than December 2024 and that's not necessarily bad news. Properties are still selling relatively quickly (under 20 days for most cities), but the fear-of-missing-out sentiment of 2024 has evolved into "thoughtful urgency." The days of instant offers may be cooling as inventory improves slightly in 2024 and buyers feel less pressure.
Key Trends We're Seeing
1.) Most cities still selling above asking (102-111% range)
2.) Slight cooling in competitiveness: Most cities saw 2-6% decreases in this metric
3.) Cupertino dropped from 108% to 102% (-6%) – buyers gaining negotiating power
4.) Atherton stayed stable at 95-97%
Bottom line?
For Buyers: Don't wait for "perfect" rates, buy when it makes sense for YOUR life. You can always refinance later.
For Sellers: Demand is still strong, especially under $3M. But price it right from the start, overpricing will cost you time in this more balanced market. If you're also buying your next home, have a clear game plan for timing and consider whether you'll need a bridge loan. Coordination becomes even more critical when selling and buying in different markets.
We're moving from a "seller's fever dream" to a "grown-up market". The Bay Area continues to prove it doesn't follow national trends. Our unique mix of low inventory, stable tech employment, and global demand keeps us resilient.
So here's to 2026! May your commutes be short, your equity grow steadily, and your offers be accepted.
Warmly,
Wendy Leung
(This report covers from Redwood City to Cupertino. Redwood City and Menlo Park fall under San Mateo County. Palo Alto, Mountain View, Los Altos, Cupertino, Sunnyvale, and Santa Clara fall under Santa Clara County. Data include single-family home sales only. Data is from CA MLS and is deemed reliable but not guaranteed. Private sales are not included.)
Questions about your specific neighborhood? Every market and price segment reacts differently. If you’re thinking about buying or selling, or just want to understand what’s happening in your specific neighborhood, I’m here to help. Reach out to Wendy at [email protected] to schedule a time to discuss your unique situation and how these trends might affect your plans.
Posted on December 31, 2025
(This report covers from Redwood City to Cupertino. Redwood City and Menlo Park fall under San Mateo County. Palo Alto, Mountain View, Los Altos, Cupertino, Sunnyvale, and Santa Clara fall under Santa Clara County. Data include single-family home sales only. Data is from CA MLS and is deemed reliable but not guaranteed. Private sales are not included.)
Questions about your specific neighborhood? Every market and price segment reacts differently. If you’re thinking about buying or selling, or just want to understand what’s happening in your specific neighborhood, I’m here to help. Reach out to Wendy at [email protected] to schedule a time to discuss your unique situation and how these trends might affect your plans.
