December 2025 Silicon Valley Real Estate Market Update
Palo Alto, Atherton, Menlo Park & Redwood City
As we wrapped up 2025, the Silicon Valley housing market showed clear signs of seasonal slowdown paired with resilient pricing. While the number of homes sold dipped across several cities (very typical for December), prices held strong — and in some areas, climbed significantly.
Here’s a breakdown of what happened in Palo Alto, Atherton, Menlo Park, and Redwood City, and what it means as we head into the new year.
Palo Alto Market Update – December 2025
Palo Alto closed the year with 20 single-family homes sold, slightly down year-over-year and 33% lower than November — a normal seasonal shift. What stood out, however, was pricing strength.
The median sale price rose to $4.13M, up 21% from last year, and sellers still received an average of 104% of list price. While days on market increased to 18 days, competition remains strong, especially for well-located, turnkey homes.
Key takeaway: Demand hasn’t disappeared — buyers are simply being more selective, while sellers with strong homes are still seeing solid results.
Atherton Market Update – December 2025
Atherton’s ultra-luxury market continues to move differently than the rest of the Peninsula. Only 7 homes sold in December, but prices surged.
The median sale price jumped to $13.98M, a massive year-over-year increase driven by high-end sales in the top quartiles. Even with slightly longer days on market (22 days), inventory remains extremely limited.
Sellers received about 97% of list price, signaling a market that is still strong — but more negotiated than earlier in the year.
Key takeaway: Atherton remains highly exclusive. Pricing is driven by a small number of luxury transactions rather than volume.
Menlo Park Market Update – December 2025
Menlo Park experienced one of the larger slowdowns in activity, with 14 homes sold, down from November. The median sale price softened to $3.15M, reflecting a shift toward fewer top-tier sales rather than declining demand.
Despite this, competition remains intense: homes sold for an average of 107% of list price, and inventory dropped to just 0.2 months — an extremely tight market.
Key takeaway: Fewer sales does not mean a weak market. Buyers are still competing heavily for the right homes, especially in prime neighborhoods.
Redwood City Market Update – December 2025
Redwood City ended the year on a strong note with 40 homes sold, up 43% year-over-year. The median sale price increased to $2.39M, and inventory continued to tighten.
While days on market edged up slightly, sellers still averaged 102% of list price, reinforcing Redwood City’s reputation as one of the most competitive and accessible markets on the Peninsula.
Key takeaway: Redwood City remains a high-demand market for buyers looking for value, location, and long-term upside.
What This Means Going Into 2026
Across the board, December showed us three important trends:
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Seasonal slowdowns are normal — but pricing remains resilient
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Inventory is still historically low, especially in Menlo Park and Palo Alto
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Well-priced, well-prepared homes continue to attract competition
If you’re thinking about buying or selling in early 2026, this is the time to start game-planning. Understanding neighborhood-level trends, pricing strategy, and timing will be critical as the market ramps back up in the spring.
Thinking About Making a Move?
Whether you’re buying, selling, or just keeping an eye on the market, I’m always happy to break these numbers down for your specific neighborhood and goals.
📩 Reach out anytime — I’m here to be a resource and help you plan smart.
