January 2026 Silicon Valley Real Estate Market Update
What Buyers and Sellers Need to Know Right Now
January 2026 confirmed what many local buyers and sellers have been sensing: the Silicon Valley housing market has officially shifted into a more measured, data-driven phase. While demand remains present, pricing sensitivity, longer decision timelines, and selective buyer behavior defined the start of the year across Mid-Peninsula markets.
Here’s a breakdown of what happened in Redwood City, Menlo Park, and Atherton — and what it means as we head toward the spring market.
Redwood City: Slower Pace, Still Competitive
Redwood City saw a noticeable cooldown in activity to start the year, largely driven by seasonal factors and buyer caution.
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23 homes sold in January, down 45% from December
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Median sale price: $2.24M, a 7% decrease month over month
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Median days on market: 19 days, unchanged
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Sellers received 100% of asking price, down slightly from 102% in December
Despite fewer transactions, pricing remained stable relative to list price, signaling that well-priced homes are still moving, just with fewer bidding wars and more deliberate buyers.
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Takeaway: Buyers have more breathing room, but sellers still need accurate pricing — not aspirational numbers.
Menlo Park: Demand Is There, But Buyers Are Selective
Menlo Park continued to show strength compared to neighboring markets, though momentum softened from late 2025 highs.
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13 closed sales, down 19% from December
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Median sale price: $3.30M, down 7% month over month
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Median days on market: 12 days
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Homes sold for 101% of list price, down from 108% in December
Homes are still selling quickly, but buyers are clearly pushing back on overpricing. Homes that aligned closely with recent comps continued to perform best.
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Takeaway: Menlo Park remains competitive, but pricing strategy matters more than ever.
Atherton: Ultra-Luxury Market, Big Swings
Atherton’s January numbers highlight why ultra-luxury data must always be viewed cautiously due to low volume.
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2 homes sold, down 71% from December
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Median sale price: $25.22M, up 80% month over month
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Median days on market: 47 days
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Homes sold for 99% of list price, slightly higher than December
The dramatic jump in median price reflects which homes sold, not a sudden surge in overall values. With longer days on market, buyers in this segment are taking their time and negotiating carefully.
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Takeaway: Atherton remains a strategic, relationship-driven market where timing and positioning are critical.
Big Picture: What January 2026 Is Telling Us
Across Silicon Valley, January reinforced a few key themes:
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Inventory is building slowly, not flooding the market
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Buyers are price-sensitive and well-educated
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Homes priced within 3–5% of recent comps perform best
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Overpriced homes are sitting longer and facing reductions
This is no longer the market where “throwing a number out there” works. Strategy, preparation, and local expertise matter more than ever.
What This Means for Buyers and Sellers Heading Into Spring
For buyers:
You have more leverage than you did a year ago, especially on homes that have been sitting. Preparation and strong guidance can unlock real opportunities.
For sellers:
Homes that are well-prepared, correctly priced, and professionally marketed are still selling — but buyers are quick to walk away from overpricing.
If you’d like a hyper-local breakdown for your specific neighborhood or want to discuss what these trends mean for your goals in 2026, I’m always happy to share insights!
