August 2026 Silicon Valley Housing Market Report: Fewer Sales, Stronger Bids

What Happened to the Silicon Valley Housing Market in August 2026?

Fewer homes sold, more came onto the market, and the ones that closed drew stronger bids than they had in July.

Single-family closings fell to 945 in August from 1,077 in July, down 12.3%, after a 14.2% drop from June's 1,255 to July's 1,077, the third straight monthly decline. Combined sale volume followed the same path, down to $2,430,089,941 from $2,835,932,613.

Medians eased in both counties. San Mateo County's median settled at $2,075,000, down 2.3% from July's $2,123,000. Santa Clara County's settled at $1,850,000, down 2.6% from $1,900,000.

Sellers in San Mateo County averaged 107% of list, up from 106% in July, and sellers in Santa Clara County averaged 103%, up from 102%. Fewer transactions closed, and the ones that did drew sharper competition.

New listings rose in both counties even as sales fell, to 358 from 342 in San Mateo County and to 872 from 835 in Santa Clara County. Active inventory grew slightly too, to 424 and 1,104 homes. Average days on market held at 25 in San Mateo County and eased to 25 from 27 in Santa Clara County.

Source: SAMCAR and SCCAOR, data collected and compiled by MLSListings, Inc. Santa Clara County does not publish months of supply.

Are Rising Mortgage Rates Behind August's Slower Sales?

No. Freddie Mac's Primary Mortgage Market Survey shows the 30-year fixed rate was flat to slightly lower through most of August, so borrowing costs held steady while closings fell.

Freddie Mac logged 6.69% on August 6, 6.65% on August 20, 6.66% on August 27, 6.71% on September 3, and 6.76% on September 10. Those five readings ran flat to slightly lower across most of August before ticking back up heading into September. August closings reflect offers written in July, so seasonal timing explains the drop.

Where Did Buyers Compete Hardest in August 2026?

Percent of list price is the cleanest measure of competitive pressure. Save this list, it's the fastest way to see where an offer needed to be sharp this month.

1. South San Francisco: 116% of list, an average of 13 days, 18 sales, a $1,454,444 median.
2. Millbrae: 114% of list, an average of 8 days, 9 sales, 0.6 months of supply.
3. San Mateo: 113% of list, an average of 13 days, 29 sales, a $2,368,000 median, 0.6 months of supply.
4. Palo Alto: 111% of list, up from 108% in July, an average of 22 days, 32 sales, a $4,005,000 median, $2,283 per square foot.
5. San Carlos: 108% of list, an average of 21 days, 29 sales, a $2,500,000 median.
6. Burlingame: 107% of list, an average of 11 days, 13 sales, a $3,168,888 median, 0.8 months of supply.
7. Sunnyvale: 107% of list, an average of 13 days, 41 sales, a $2,555,000 median.
8. Mountain View: 107% of list, an average of 9 days, 12 sales, a $2,550,000 median.
9. Los Altos: 107% of list, an average of 21 days, 21 sales, a $4,912,300 median, $2,170 per square foot.
10. Redwood City: 107% of list, an average of 22 days, 46 sales, a $2,100,000 median.
11. Menlo Park: 106% of list, an average of 17 days (July averaged 22), 25 sales (July had 22), a $3,610,000 median (July was $3,375,000), $1,767 per square foot, 1.0 months of supply.

"A quieter month handed buyers fewer chances. The homes that did trade in August moved the way they had all summer, fast, and above asking."

Hillsborough closed 11 sales at a $7,600,000 median, averaging 106% of list across 33 days; its average sale price, $14,454,363, reflects a few very large closings and sits far above the typical home. Atherton closed only 4 sales, at an $18,650,000 median and 116% of list. Four sales is never a trend.

Source: SAMCAR and SCCAOR, data compiled by MLSListings, Inc. A selection across both counties and every price tier. The full city list runs longer. Cities with fewer than five closed sales are left out, because one transaction can move their median by seven figures: Atherton (4 sales), Colma (1), El Granada (2), Montara (2), Moss Beach (3), San Gregorio (1), Monte Sereno (3), San Martin (2) and Stanford (1) in August.

Which Peninsula Markets Are Running Slower Right Now?

Woodside, Half Moon Bay and Los Gatos are the honest counterweight to the list above, and south Santa Clara County sits in balance.

Woodside averaged 99% of list across 8 sales against 23 active listings, 2.7 months of supply, at a $3,805,400 median. Half Moon Bay averaged 95% of list across 11 sales and 65 average days, at 1.7 months of supply; El Granada, Montara and Moss Beach also cleared under 100%, each on two or three sales, too few for a median. Los Gatos cleared 104% of list but took an average of 51 days across 14 sales against 83 active listings, the widest gap between price strength and pace in either county.

Gilroy carried 90 active listings against 33 sales at 38 average days and 101% of list. Morgan Hill carried 72 active listings against 24 sales, also at 101%. Portola Valley and Los Altos Hills matched that estate-tier pattern: 99% of list across 5 sales and 61 days in Portola Valley, 97% across 7 sales and 46 days in Los Altos Hills.

Cupertino sits between the two lists: 103% of list, down from 110% in July, though its average days on market tightened to 25 from 35. The median rose to $3,319,500 from $2,850,000, which tracks a change in the mix of homes that sold.

Is the Santa Clara County Condo Market Cooling?

Yes. Santa Clara County's condominium and townhome segment softened further in August, and it's now the clearest soft spot in this market.

The median fell to $850,000 from $904,500 in July, a decline of 6.0%. Closed sales dropped to 275 from 288, against 894 active listings, down from 931.

Average days on market held near flat at 40, from 41, and sellers averaged 100% of list, down from 101%. Median price per square foot rose slightly, to $682 from $673.

Source: SCCAOR, data collected and compiled by MLSListings, Inc.

Unlike single-family homes, where fewer sales still drew stronger bids, condos softened on nearly every measure at once, the one tier with genuine room for a patient buyer.

What Does August Mean If You're Buying or Selling?

The practical read depends on which side of the transaction you're on.

If you're selling

• The pricing environment did not soften. A 107% average in San Mateo County and 103% in Santa Clara County means correctly priced homes are still drawing competition above asking.
• Competition held for the right home. Closings fell about 12%, but homes in Millbrae, San Mateo, Palo Alto and a dozen other cities cleared well above list.
• Estate-tier timelines run longer. Hillsborough averaged 33 days and Portola Valley averaged 61, normal for the tier, but worth building into your expectations before you list.
• New listings rose while sales fell. San Mateo County added 358 listings against 321 sales; Santa Clara County added 872 against 624. A well-prepared listing still stands out in that gap.

If you're buying

• Look past the median to where the competition sits. Percent of list tells you more about a specific city than the countywide median does.
• The negotiating room is concentrated. Santa Clara County condominiums, Half Moon Bay, Woodside and south Santa Clara County are where August shows genuine give.
• Mountain View, Millbrae, San Mateo and South San Francisco moved fast. Each averaged 13 days or fewer on market. A slow decision there costs you the house.
• Rates held steady through August. Freddie Mac's readings were flat to slightly lower through most of August. The mortgage market gave you the same terms all month.

For the longer view, the Silicon Valley Real Estate Market Report tracks the trend across the year, and the July 2026 report covers the month that set up August's slowdown.

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