Is Santa Clara County Becoming a Buyer’s Market?
If you’ve been following the Santa Clara County real estate market, you may have noticed something different lately.
Homes that might have received multiple offers immediately at the beginning of the year are sometimes sitting longer. Price reductions are becoming more visible. Buyers are asking for contingencies. And in certain situations, sellers are actually negotiating.
So, has the Silicon Valley housing market officially become a buyer’s market?
Not exactly.
I would describe the current Santa Clara County housing market as something slightly different—and potentially very advantageous:
We’re in a buyer-opportunity market.
There is still significant demand for great homes throughout San Jose, Almaden Valley, Cambrian, Willow Glen, Los Gatos, Saratoga and other desirable Silicon Valley communities. But today's buyers have more room to breathe, perform their due diligence and negotiate than they did during some of the most competitive periods of the market.
And the latest numbers help tell that story.
What Is Happening in the Santa Clara County Real Estate Market?
The market is sending mixed signals—which is exactly why simply labeling it a “buyer’s market” or “seller’s market” doesn't tell the whole story.
According to MLSListings, the median sale price for a single-family home in Santa Clara County was approximately $1.92 million in June 2026, down about 8.6% from the previous year. There were 987 active single-family listings at the time.
Another local market analysis reported that Santa Clara County single-family homes spent an average of 22 days on market in June, compared with a faster pace the previous year. Yet those homes still averaged approximately 103.3% of their original list price.
That last number is important.
If this were a traditional buyer’s market across the board, we wouldn’t expect the average single-family home to sell above asking price.
At the same time, there are unmistakable signs of cooling. At the end of July, Altos Research classified Santa Clara County single-family real estate as a strong seller's market, but its Market Action Index had slipped from the previous month. It also reported that roughly 27% of active listings had experienced a price decrease.
In other words:
The market hasn't flipped. But it has shifted.
Why Do Buyers Have More Leverage in Silicon Valley?
One of the biggest changes I'm seeing isn't necessarily reflected in a single statistic.
It's buyer behavior.
When buyers believe that five other offers are coming behind them, they're far more likely to make aggressive decisions. They may waive contingencies, shorten timelines, overlook property deficiencies or stretch their budget because they're afraid of losing the house.
When that urgency diminishes, buyers behave differently.
They start asking:
How long has the home been on the market?
Has the seller received any offers?
Has there been a price reduction?
Can we include an inspection contingency?
Can we negotiate a credit?
Does this home really justify this price?
Those are healthy questions—and buyers have more opportunities to ask them in today's Silicon Valley real estate market.
Mortgage rates are also contributing to that shift. As of mid-August, the 30-year mortgage rate remained around the upper-6% range, which continues to put pressure on affordability nationally.
When you're talking about Santa Clara County home prices, even relatively small changes in mortgage rates can have a significant effect on a buyer's monthly payment.
Does This Mean Silicon Valley Buyers Can Make Low Offers?
Not necessarily—and this is where buyers need to be careful.
A changing market doesn't mean every seller is desperate to sell.
The best properties can still perform extremely well.
A beautifully prepared home in a desirable Santa Clara County neighborhood, with a strong floor plan, good schools, thoughtful updates and an appropriate asking price, can still generate significant interest and multiple offers.
That's why I don't believe buyers should approach every listing thinking, “The market is down, so let's offer $200,000 under asking.”
Instead, buyers should look for property-specific leverage.
Has the property been sitting for several weeks?
Has it fallen out of contract?
Is it overpriced relative to recent comparable sales?
Does it need substantial updating?
Are there inspection issues?
Does it have a characteristic that limits its buyer pool?
Has the seller already reduced the price?
Those situations can create opportunities that simply weren't as readily available when nearly everything was selling immediately.
Contingencies Are Making a Comeback
One of the most important developments for anyone buying a home in Silicon Valley is the return of contingencies in some transactions.
During extremely competitive markets, buyers often felt pressured to waive appraisal, loan or investigation contingencies simply to get their offer accepted.
Today, that's not always necessary.
Depending on the property and level of competition, we're seeing buyers have opportunities to include contingencies and conduct additional due diligence before fully committing to a purchase.
That doesn't mean every offer should contain every contingency. Real estate remains incredibly property-specific.
But having the option to protect yourself is meaningful.
For buyers who sat on the sidelines because they didn't feel comfortable competing against 10 or 15 offers while waiving protections, 2026 may present opportunities worth reconsidering.
What Does the Current Market Mean for Santa Clara County Sellers?
Sellers shouldn't read any of this and panic.
There are still buyers in the market, and there is still limited supply in many of Silicon Valley's most desirable neighborhoods.
What has changed is that the margin for error has become smaller.
Six months ago, a seller might have been able to push the price and let buyer competition compensate.
Today, an overpriced property can sit.
And once buyers see accumulating days on market and subsequent price reductions, the conversation can quickly change from:
“How much over asking do we need to offer?”
to:
“How much below asking do you think they'll take?”
That's a major psychological shift.
For anyone considering selling a home in Santa Clara County, your initial pricing strategy matters tremendously.
Preparation Matters More Than Ever
The same applies to home preparation.
Today's buyers are comparing your property not only against other homes in your immediate neighborhood, but against everything available within their price range.
That means paint, flooring, landscaping, staging, photography, lighting and overall presentation matter.
You don't necessarily need to completely remodel a house before selling it.
But you do need to understand which improvements will actually influence buyer perception and resale value.
The goal isn't to make the home perfect.
It's to make buyers walk through the front door and immediately understand its value.
Santa Clara County Isn't One Real Estate Market
Another mistake I see is treating the entire county as though it's a single market.
It isn't.
The experience of buying a condo in San Jose can be completely different from purchasing a single-family home in Almaden Valley.
The market for a $2 million home in Cambrian or Willow Glen can behave differently from a luxury property in Los Gatos or Saratoga.
And even within individual neighborhoods, certain streets, school boundaries, floor plans and lot configurations can command dramatically different buyer demand.
That's why broad headlines about the Bay Area housing market should always be taken with some context.
Real estate is hyperlocal.
So, Is Now a Good Time to Buy a Home in Santa Clara County?
For the right buyer, I think this is one of the more interesting markets we've seen in quite some time.
Not because homes suddenly became inexpensive—they haven't.
And not because sellers no longer have leverage—they often do.
It's interesting because buyers can potentially have something they haven't consistently had in Silicon Valley:
options.
You may have more time to evaluate a property.
You may be able to perform inspections.
You may have an opportunity to negotiate.
And you may be able to purchase a home without feeling like you have to make every decision within 24 hours.
That is why I keep coming back to the same phrase:
This isn't necessarily a buyer’s market. It's a buyer-opportunity market.
For sellers, the message is equally important.
Homes are still selling—and great homes can still sell extremely well.
But the strategy that worked six months or a year ago may not be the strategy that works today.
Pricing, preparation, presentation and negotiation matter.
Thinking About Buying or Selling in Silicon Valley?
Whether you're considering buying a home in Santa Clara County, relocating to Silicon Valley, or wondering whether now is the right time to sell, the most important thing is understanding what's happening in the specific neighborhood and price point you're targeting.
The Silicon Valley real estate market can change dramatically from one city—or even one neighborhood—to another.
If you're considering a move in Almaden Valley, San Jose, Cambrian, Willow Glen, Los Gatos, Saratoga or elsewhere in Santa Clara County, I'd be happy to talk through what we're seeing on the ground and how it affects your particular situation.
The market hasn't stopped moving.
The strategy has simply changed.