Palo Alto is one of those markets that rarely slows down for long, and the latest numbers show why. Well priced homes are still moving in about nine days, buyers are still paying over asking for the right home, and there are fewer new listings coming on than a year ago. 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 most recent third quarter data mean for you.
Palo Alto at a glance
Palo Alto does not publish a September only median sale price through the California Association of Realtors, which reports by county, so the clearest Palo Alto picture comes from MLS data for the third quarter of 2026 and for the year through August. In the third quarter of 2026, 103 single family homes sold in Palo Alto at a median price of $4.2 million. Those homes sold for a median of 107.6 percent of their original list price, and the median time on market was just 9 days.
The longer view tells the same story. From January through August 2026, the median sale price in Palo Alto was $4.125 million, up 7.8 percent from $3.825 million in the same months of 2025, according to Palo Alto Online reporting on MLSListings data published September 21, 2026. There were 270 sales in that period, and 366 new listings, down 9.2 percent from a year earlier. Fewer new listings, a median of 9 days on market, and prices up on the year add up to a simple point, Palo Alto sellers with a well prepared home are still in a strong position, and Palo Alto buyers need to be ready to move quickly and write a clean, confident offer.
Santa Clara County, more choice than last year
Santa Clara County looks a little different from Palo Alto, and that difference is good news for buyers. The California Association of Realtors reported a median sold price of $1,920,000 for existing single family homes in Santa Clara County 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 median time on market was 11 days.
The biggest change is choice. C.A.R. reported active listings in Santa Clara County up 26.4 percent from a year earlier, the largest increase among the counties it highlighted, while the county unsold inventory index sat at 2.1 months. More listings with prices a little softer than last year means buyers across the county have more room to compare homes, ask questions, and negotiate than they had a year ago, even though good homes still sell fast.
San Jose, steady prices and real options for buyers
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. There were 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, with 471 units in inventory, which gives first time buyers and downsizers in San Jose a more affordable way in, with a little more time to decide.
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. The median time on market for the region was 19 days, faster than the 24 days of a year earlier, and the unsold inventory index was 2.6 months. The Bay Area is not one single market, prices rose strongly in San Francisco and San Mateo County in September while Santa Clara County softened a little, so your street and your city matter more than any regional headline.
Mortgage rates, a step in the right direction
There is a welcome piece of news on rates. Freddie Mac’s weekly Primary Mortgage Market Survey put the average 30 year fixed rate at 7.32 percent for the week ending October 22, 2026, down from 7.40 percent the week before, the first weekly decline since late August. The 15 year fixed averaged 6.68 percent. A dip like this is a good reminder that rates move week to week, and buyers who are already preapproved are the ones who can take advantage when a better week comes along. Getting your paperwork done early, knowing your monthly payment at a few different price points, and staying in close touch with your lender turns a small rate move into a real opportunity. The Federal Reserve held its benchmark rate steady on October 28, so the buyers who do best right now are the prepared ones, not the ones waiting for a perfect headline.
What this means if you are buying in Palo Alto
Come in prepared. In a market where the median home sells in 9 days and above asking, a full preapproval, proof of funds, and a clear plan for contingencies matter. At the same time, look closely at homes that have been listed more than once or sit a little longer, because those can offer the breathing room that fresh listings do not. And keep Santa Clara County and San Jose in your search if Palo Alto prices stretch your budget, the county has more listings than last year and softer prices, which is a genuine opening.
What this means if you are selling in Palo Alto
Presentation and pricing still win. With new listings down 9.2 percent this year, a well prepared Palo Alto home stands out to a deep pool of ready buyers. Price from recent local sales, not from a county median, get the home truly showing ready, and plan for a fast first two weeks, because that is when this market does its best work.
Common questions
1. What is the median home price in Palo Alto right now?
The latest MLS based figures put Palo Alto at a median of $4.2 million for single family homes sold in the third quarter of 2026, and $4.125 million for January through August 2026, up 7.8 percent from the same period in 2025. There is no September only Palo Alto median published by C.A.R., which reports by county.
2. How fast are homes selling in Palo Alto and Santa Clara County?
Palo Alto’s median time on market was 9 days in the third quarter of 2026. Santa Clara County’s median was 11 days in September 2026, and the Bay Area median was 19 days.
3. Is now a good time to buy in San Jose or Santa Clara County?
Santa Clara County had 26.4 percent more active listings in September 2026 than a year earlier, and its median price was down 4.0 percent on the year, so buyers have more choice and more negotiating room than last fall. San Jose single family homes also had 606 homes in inventory in September, the most options buyers have had in a while.
4. What is the current mortgage rate?
Freddie Mac’s latest weekly survey, for the week ending October 22, 2026, put the average 30 year fixed rate at 7.32 percent, down from 7.40 percent the week before. Rates move weekly, so a current quote from your lender is always the right next step.
5. Are homes in Palo Alto selling over asking?
Yes, on the latest data. Palo Alto single family homes sold for a median of 107.6 percent of their original list price in the third quarter of 2026.
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