November is starting with a helpful combination for Palo Alto buyers, homes are still selling fast and above asking, and mortgage rates just eased for the second week in a row to their lowest level this month. That kind of rate move does not change the Palo Alto market overnight, but it does give prepared buyers a little more purchasing power right when they need it. If you are thinking about buying or selling in Palo Alto, San Jose, or anywhere in Santa Clara County, here is what the latest September figures and the newest weekly numbers mean for you.
Palo Alto at a glance, fast, premium, and tight on supply
Palo Alto does not publish a monthly median through the California Association of Realtors, which reports by county, so the clearest Palo Alto picture comes from MLSListings data. In September 2026, 40 single family homes sold in Palo Alto, up from 36 last September, with 51 homes for sale and just 1.3 months of supply, down from 1.6 months a year earlier. Tight supply is still the story here.
The longer view is just as clear. From January through September 2026, 316 single family homes sold in Palo Alto at a median price of $4.13 million, up 6 percent from a year earlier. Those homes sold for 107.8 percent of asking on average, in a median of just 8 days, at $2,236 per square foot, up 9 percent from a year earlier. In the third quarter alone, the median was $4.2 million, with a median of 107.6 percent of list and 9 days on market. Whichever window you choose, Palo Alto buyers are paying above asking and deciding quickly, and Palo Alto sellers with a well prepared home are in a strong position.
Mortgage rates, easing in a helpful direction
There is welcome news on rates as November begins. Freddie Mac’s weekly Primary Mortgage Market Survey put the average 30 year fixed rate at 7.24 percent for the week ending October 29, 2026, down from 7.32 percent the week before. The 15 year fixed averaged 6.60 percent, down from 6.68 percent. That is the second weekly decline in a row, and Freddie Mac’s chief economist noted the rate reached its lowest level this month, modestly boosting purchasing power for prospective buyers.
Here is how to think about a move like this in a friendly, practical way. A small dip helps you in three ways, it can lower your monthly payment a little, it can help a few more buyers qualify, and it can give you more confidence to write the offer when the right home appears. The buyers who benefit most are the ones who are already preapproved, who know their payment at a few different price points, and who stay in close touch with their lender, so a good rate week and a good home can line up. Think of this as an opening to get ready, not a reason to rush.
San Jose, more choice for buyers this fall
San Jose is offering buyers a different kind of opportunity right now, more choice. In San Jose, the Santa Clara County Association of Realtors September 2026 report put the single family median sale price at $1,568,888, with 367 closed sales, 471 new listings, and 606 single family homes in inventory. Single family homes averaged 28 days on market, and closed sales averaged 102 percent of the original list price. For condos and townhomes, the median sale price was $729,000 in September, with 471 units in inventory and 127 closed sales, averaging 44 days on market.
The weekly data points the same way. Redfin, in its update released October 29 for the four weeks ending October 25, 2026, put San Jose at the top of the large metros for new listings, up 17.9 percent from a year earlier, while the San Jose metro median sale price was down 4.9 percent from a year earlier in that four week window. More new listings and a little more time on market mean San Jose buyers can compare neighborhoods properly this fall.
Santa Clara County, holding steady with more listings
Across Santa Clara County, the California Association of Realtors reported a median sold price of $1,920,000 for existing single family homes in September 2026, up 1.1 percent from August, and down 4.0 percent from September 2025. Sales rose 15.3 percent from August and 1.5 percent from a year earlier. The MLSListings county summary for September put the county median at $1,880,000 on 726 sales, with homes selling for 103 percent of list price and a median of 12 days on market, the two reports count sales a little differently, so their medians differ slightly.
The biggest change is choice. C.A.R. reported active listings in Santa Clara County up 26.4 percent from a year earlier, one of the largest increases among the counties it highlighted. A fresh quarterly view confirms the county’s place at the top, the National Association of Realtors, in its third quarter metro report released October 29, 2026, said San Jose, Sunnyvale and Santa Clara remained the most expensive metro market in the country, at a median of $1.92 million, up 0.3 percent.
The Bay Area overall
Across the San Francisco Bay Area, C.A.R. reported a median sold price of $1,325,000 for existing single family homes in September 2026, up 4.2 percent from August and up 1.9 percent from September 2025. Statewide, the California median was $899,720 in September, down 0.2 percent from August and up 1.7 percent from a year earlier. Nationally, Redfin reported a median sale price of $389,601 for the four weeks ending October 25, down 0.1 percent from a year earlier. Our local market is holding up much better than the national picture, which is exactly why local, city by city guidance matters so much here.
Buyer tips for Palo Alto right now
First, get fully preapproved before you tour seriously, and ask your lender what the latest rate move does to your payment, so you know your true budget this week, not last month. Second, plan for speed and for above asking, Palo Alto homes sold in a median of 8 days from January through September, at 107.8 percent of asking on average, so your offer needs to be clean and ready on day one. Third, look at price per square foot, not just the headline price, Palo Alto averaged $2,236 per square foot this year, and that number helps you compare homes on the same street fairly. Fourth, keep San Jose and the wider county in your search if Palo Alto stretches your budget, there is more inventory there, and a little more time to decide. Fifth, watch homes that sit past the first two weeks, even in Palo Alto they can offer a little more room to talk about price, timing, or repairs.
What this means if you are selling in Palo Alto
Sellers, the numbers are on your side when the home is ready. With just 1.3 months of supply in September and homes selling above asking in about a week, a well priced, well presented Palo Alto home still draws serious buyers quickly. Price from recent local sold sales on your street, finish repairs and staging before you list, and have disclosures ready, because buyers here decide fast and reward homes that are easy to say yes to.
Common questions
1. What is the median home price in Palo Alto right now?
From January through September 2026, the Palo Alto single family median was $4.13 million, up 6 percent from a year earlier, on MLSListings data. In September alone, 40 homes sold, with 51 homes for sale and 1.3 months of supply. In the third quarter of 2026, the median was $4.2 million.
2. What is the current mortgage rate?
Freddie Mac’s latest weekly survey, for the week ending October 29, 2026, put the average 30 year fixed rate at 7.24 percent, down from 7.32 percent the week before, and the 15 year fixed at 6.60 percent. It was the lowest level this month. Rates move weekly, so a current quote from your lender is always the right next step.
3. How fast are homes selling in Palo Alto, San Jose, and Santa Clara County?
Palo Alto homes sold in a median of 8 days from January through September 2026. San Jose single family homes averaged 28 days on market in September 2026, and the Santa Clara County median was 12 days on market on the MLSListings September summary.
4. How does San Jose compare with Palo Alto right now?
San Jose’s single family median was $1,568,888 in September 2026, at 102 percent of list, with 606 homes in inventory. Palo Alto’s median was $4.13 million from January through September, at 107.8 percent of asking on average, with much tighter supply.
5. Is now a good time to buy in Santa Clara County?
Buyers have more choice than last fall, county active listings were up 26.4 percent in September 2026, San Jose new listings were up 17.9 percent in the four weeks ending October 25, and rates just eased to their lowest level this month. Prepared buyers can compare more homes and move with confidence when the right one appears.
Thinking about buying or selling in Palo Alto, San Jose, or anywhere in Santa Clara County? I would love to help you make a clear plan with the latest local numbers. Call or text me at 408-477-6262, or visit NajwaRealEstate.com to get started.
Najwa Khoury, Real Brokerage, DRE #02026194