Santa Clara County Real Estate Market Update: Summer 2026 Recap
- Fumika Takazawa
- 1 day ago
- 8 min read
Updated: 8 hours ago
If you're wondering what happened in the Santa Clara County real estate market this summer, the headline is simple: fewer homes sold with fewer homes coming onto the market, but desirable homes continued to command strong prices.
In Q3 2026, 935 single-family homes with 3+ bedrooms and at least 1,500 square feet sold across Santa Clara County. That's a significant slowdown from 1,833 sales in Q2 and 1,034 sales in Q1.
At the same time, prices remained relatively strong. The overall median sale price was $2.258 million, with the typical home selling after 14 days on market. The median property had 4 bedrooms, 3 bathrooms, approximately 1,969 square feet of living space, and a 7,342-square-foot lot, with a median of approximately $1,050 per square foot.
So is the market weakening?
Not exactly. The Summer 2026 Santa Clara County housing market looks more selective than weak.
Buyers are still willing to pay for the right combination of location, schools, condition, and long-term value. But they're not necessarily competing for every home that comes onto the market.
Santa Clara County Real Estate Market: Summer 2026 by City
The table below focuses on single-family homes with 3+ bedrooms and 1,500+ square feet, consistent with the market segment used for the spring analysis.
City | # Sales | Median Sale Price | $/Sq Ft | Median DOM |
Campbell | 44 | $2,200,000 | $1,216 | 12 |
Cupertino | 43 | $3,005,000 | $1,594 | 12 |
Gilroy | 113 | $1,362,500 | $567 | 23 |
Los Altos Hills | 17 | $7,000,000 | $1,642 | 26 |
Los Gatos | 38 | $3,675,000 | $1,334 | 23 |
Milpitas | 24 | $1,945,000 | $962 | 12 |
Santa Clara | 36 | $2,317,000 | $1,191 | 12 |
Saratoga | 45 | $4,500,000 | $1,532 | 14 |
Stanford | 4 | $3,175,000 | $1,123 | 20 |
Sunnyvale | 58 | $2,895,000 | $1,418 | 8 |
Market data represents single-family homes with 3+ bedrooms and at least 1,500 square feet sold during Q3 2026. Neighborhood-level Q3 figures will be added once the summer MLS neighborhood report is available.
What Changed From Spring to Summer?
The biggest change in the Santa Clara County real estate market was transaction volume.
Quarter | Homes Sold |
Q1 2026 | 1,034 |
Q2 2026 | 1,833 |
Q3 2026 | 935 |
Q2 was an exceptionally active spring, with 1,833 qualifying single-family homes sold. Q3 transactions fell to 935—roughly half the Q2 volume.
But a decline in sales doesn't automatically mean prices are falling.
Instead, it suggests that buyers became more selective while sellers became more cautious.
Some homeowners may not feel enough urgency to sell, particularly if they have an older mortgage with a much lower interest rate. Meanwhile, buyers who remain in the market are concentrating their attention—and their offers—on homes that provide compelling value.
That distinction is important.
Santa Clara County Home Prices Remain Resilient
The Q3 median sale price was $2.258 million, with homes selling for approximately $1,050 per square foot and a median of 14 days on market.
In other words, the market didn't simply collapse because fewer homes sold.
Instead, the summer market demonstrated a widening gap between homes buyers really want and homes buyers are willing to compromise on.
The three sales below illustrate this particularly well.
Case Study 1: Location + Schools + The Right Updates Still Create Competition
1850 Montecito Avenue, Mountain View
Listed: $2,498,000
Sold: $2,730,000
Sale-to-list: approximately 109%
3 Beds | 2 Baths
1,581 Sq Ft
5,200 Sq Ft Lot
7 Days on Market
This Mountain View home is a great example of why buyers don't necessarily need a large house to compete aggressively.
With only three bedrooms and 1,581 square feet, the home was smaller than the median Santa Clara County property. But it offered something much harder to change: location.
Located on an idyllic tree-lined street, the single-level mid-century home was just half a block from Theuerkauf Elementary and minutes from downtown Mountain View, Google, and major commute routes.
Thoughtful updates helped make the home even more compelling. The bright open floor plan featured skylights, large windows, hardwood floors, beamed and paneled ceilings, and a fresh neutral palette.
The updated kitchen had quartz countertops and abundant cabinetry, while the primary suite opened directly to the backyard and featured an updated bathroom with a dual-sink quartz vanity and oversized shower.
An attached two-car garage, flexible office nook, storage, mature landscaping, patios, and multiple storage sheds added functionality without sacrificing the home's original character.
The result?
$232,000 over asking after only seven days.
The lesson from this sale is particularly relevant in the current Santa Clara County real estate market:
You don't necessarily need the biggest house or the most bedrooms if the location checks enough of the boxes buyers care about.
Schools, proximity to major employers, commute routes, neighborhood quality, and thoughtful improvements can outweigh square footage.
Case Study 2: Don't Automatically Ignore the Fixer
468 Montclair Drive, Santa Clara
Listed: $1,950,000
Sold: $2,580,000
Sale-to-list: approximately 132%
4 Beds | 2 Baths
1,802 Sq Ft
10,678 Sq Ft Lot
10 Days on Market
This property tells a completely different story.
It was essentially an as-is fixer.
It wasn't staged like a model home. It wasn't professionally photographed to showcase designer finishes. It wasn't the type of property that would necessarily win a beauty contest against a fully remodeled Silicon Valley home.
And yet it sold for $630,000 over asking.
Why?
Schools.
The property feeds into the highly desirable Cupertino Union School District and Fremont Union High School District, including Fremont High School.
For some buyers, the opportunity to purchase in a sought-after school district can outweigh the inconvenience of cosmetic renovations.
This doesn't mean every fixer is a good investment.
The important distinction is between cosmetic work and major unknowns.
If the disclosures are relatively clean on the expensive components—such as the roof, HVAC, electrical, foundation, plumbing, or other major systems—a home that needs paint, flooring, landscaping, kitchen or bathroom updates may deserve a closer look.
For buyers, this can create an opportunity.
Instead of competing against everyone for a fully staged and remodeled property, you may be able to purchase a home that other buyers overlook because it doesn't look perfect on day one.
For sellers, however, this example also provides an important lesson.
Before deciding to skip inspections, repairs, touch-ups, staging, or professional photography, talk to a real estate professional first.
The right preparation isn't necessarily about spending the most money.
It's about determining which improvements are most likely to produce a return and which ones aren't worth doing.
Case Study 3: Sometimes the Best Deal Never Hits the Market
400 E Edith Avenue, Los Altos
Sale Price: $5,650,000
4 Beds | 3.5 Baths
2,619 Sq Ft
11,250 Sq Ft Lot
Off-market sale
This transaction provides a completely different perspective on the Santa Clara County real estate market.
The property sold off market, without the typical public competition created by a traditional MLS listing.
The home is a single-story farmhouse-style property in Los Altos, offering excellent schools, convenient access to Silicon Valley employers, multiple skylights, abundant natural light, and a paved entryway.
The rest of the transaction details are private, but there is an important takeaway for both buyers and sellers:
Relationships matter.
In competitive markets, buyers often assume the only way to find a great home is to watch the MLS and compete once the property becomes publicly available.
That's not always true.
Knowing the right agents, communicating what you're looking for, and having strong relationships within the local real estate community can sometimes connect you with opportunities before they become widely marketed.
For buyers, that can mean less competition.
For sellers, it can mean finding a qualified buyer without necessarily going through the entire traditional listing process.
What This Santa Clara County Real Estate Market Means for Buyers
1. Fewer homes sold—but that doesn't mean competition disappeared
The decline from 1,833 Q2 sales to 935 Q3 sales means there were significantly fewer transactions.
But buyers shouldn't interpret that as "everything is negotiable."
The three case studies tell us the opposite.
A well-located Mountain View home sold for $232,000 over asking.
A Santa Clara fixer sold for $630,000 over asking.
An off-market Los Altos property sold for $5.65 million without ever entering the normal public competition.
The market is selective—not inactive.
2. Look beyond the cosmetics
If you are comfortable with renovations, don't automatically eliminate homes because they aren't beautifully staged.
Ask:
Are the schools strong?
Is the location desirable?
Is the floor plan functional?
Is the lot valuable?
How old is the roof?
How old is the HVAC?
What do the disclosures say?
Are there foundation or drainage concerns?
Which improvements are actually needed?
A dated kitchen can be changed.
A great school district, neighborhood, or lot usually cannot.
3. Consider smaller homes in premium locations
1850 Montecito Avenue demonstrates that a three-bedroom, 1,581-square-foot home can still attract significant competition when the location is compelling.
For buyers who have been priced out of larger homes, it may be worth considering whether location and long-term desirability are more important than maximizing square footage.
4. Be ready before the right home appears
With a median of only 14 days on market, buyers still need to be prepared to move quickly when the right property appears.
That means having financing lined up, understanding your actual budget, knowing which neighborhoods fit your priorities, and being comfortable distinguishing between a problem and an opportunity.
What This Santa Clara County Real Estate Market Means for Sellers
1. You don't necessarily need to renovate everything
The summer sales show that buyers will pay for the right fundamentals.
Before spending $100,000+ remodeling a property, determine which improvements actually matter to your target buyer.
Sometimes the highest ROI may come from:
Deep cleaning
Decluttering
Landscaping
Paint
Minor repairs
Better lighting
Professional photography
Strategic staging
rather than a complete renovation.
2. Pricing is still critical
The Q3 market was not a market where every property automatically received multiple offers.
The difference between pricing a home correctly and testing the market at an aspirational number can be significant.
The goal should be to understand where buyers perceive value today, not where you think the market should be.
3. Get advice before deciding what NOT to do
468 Montclair Drive is a good reminder that not every home needs to be fully polished before going on the market.
But that doesn't mean sellers should automatically skip inspections, repairs, staging, or photography.
The right strategy depends on the property.
A real estate professional can help determine whether an inspection will uncover issues that should be addressed before listing, whether a repair is worth the investment, and whether the property is better positioned as a turnkey home or an opportunity for a buyer willing to do the work.
4. Your network can be part of your marketing strategy
The 400 E Edith Avenue sale is a reminder that real estate doesn't happen exclusively on the MLS.
A strong network of agents can help expose a property to potential buyers before—or in addition to—traditional marketing.
For sellers, that can create another avenue for finding qualified buyers.
The Bottom Line: Summer 2026 Was a More Selective Market
The biggest story in the Santa Clara County real estate market this summer wasn't falling prices.
It was falling transaction volume combined with continued demand for desirable properties.
Only 935 qualifying single-family homes sold in Q3, compared with 1,833 in Q2 and 1,034 in Q1.
Yet the median sale price remained $2.258 million, the median home sold in 14 days, and the median price per square foot was approximately $1,050.
The case studies reinforce the bigger picture:
1850 Montecito Avenue: location, schools, and thoughtful updates drove strong competition.
468 Montclair Drive: buyers were willing to take on a fixer because the school districts and underlying property fundamentals were compelling.
400 E Edith Avenue: an off-market opportunity demonstrated the value of relationships and connections.
For buyers, this means there may be opportunities to negotiate on homes that aren't perfect—but you need to know the difference between a property that needs work and a property with fundamental problems.
For sellers, it means preparation and pricing matter more than ever. You don't necessarily need to create the most renovated house on the block. You need to understand what your particular buyers value and spend money where it will have the greatest impact.
In a selective market, the right property can still move very quickly.
And that's why looking at the overall market isn't enough. The most useful question is always:
"What is happening with homes like mine—or the home I want to buy—in the specific neighborhood and price range I'm targeting?"
Fumika Takazawa
Homes By Fumika | eXp Realty
Helping Bay Area homeowners make informed real estate decisions through data-driven strategies and local market expertise.
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