Published October 4, 2026 in Market Update

Silicon Valley condos still moved in August, but not every pocket moved the same way

By Brad Bell

Real estate, Condo & Townhome - $500K-$2M

Redfin reported San Jose home prices rose 0.9% month over month in August. That sounds tidy. The Real Estate Data Aggregator tells a messier, more useful story underneath it.

In the three months ending July 31, 2026, 971 condos and townhomes sold across these 14 ZIP codes. Pending sales hit 935. The market moved. But supply ranged from 1 month in one ZIP to 13.8 months in another. Those two numbers describe different markets, not one.

Supply: the number that tells you who has the leverage

Months of supply measures how long the current inventory would last at the current pace of sales. Under 2 months leans toward sellers. Above 6 months leans toward buyers. Most of this market sat well under 2 months. One ZIP did not.

ZIP 95134 had 13.8 months of supply, according to the Real Estate Data Aggregator. Only 2 homes sold there in the period. Nine were for sale. Zero went under contract within two weeks. That is a buyer's market by any measure.

ZIP 94087 sat at 1 month of supply. The Real Estate Data Aggregator counted 103 homes sold, with 61.3% going under contract within two weeks of listing. More than two in three sold above list price.

Where sellers still had the upper hand

A few ZIP codes showed clear seller strength in the three months ending July 31, 2026. Speed, price and competition all pointed the same direction.

ZIP 94087 in Sunnyvale had a median sale price of $2,888,000, per the Real Estate Data Aggregator. That is above the $500K-$2M range this market tracks, which tells you what is pulling the median up. Homes there sold in a median of 9 days. The sale-to-list ratio was 107.3%.

ZIP 95054 in Santa Clara had the fastest improvement year over year. The Real Estate Data Aggregator showed days on market dropped 12 days compared to the same period in 2025. The share selling above list rose 16.6 points. Median price was up 12%.

Where sellers needed more patience

Not every ZIP followed that pattern. A few showed more inventory, slower sales and less competition.

Two sales is a small sample. The Real Estate Data Aggregator does not have enough volume in 95134 to call a trend. What it does show is that buyers there had more room and more time.

ZIP 95113, downtown San Jose, also moved slowly. The Real Estate Data Aggregator counted 6 homes sold, 65 median days on market and a sale-to-list ratio of 95.3%. No home sold above list price. No home went under contract within two weeks.

ZIP 94086 in Sunnyvale showed a different kind of softness. The Real Estate Data Aggregator recorded a median price drop of 21% year over year, to $1,660,000. Days on market rose 10 days. The share selling above list fell 13.2 points. Inventory rose 37.5%. Sales volume held flat.

ZIP 95126, near Rose Garden in San Jose, had a similar pattern. Median price fell 20.1% year over year to $1,055,000, per the Real Estate Data Aggregator. More listings came to market, up 31.1%. Days on market stretched 9 days longer. The share selling above list dropped 22.1 points.

The middle of the market: solid but not sharp

Several ZIP codes sat in a workable middle. Not racing, not stalling.

ZIP 95110 had the lowest median price in the data at $850,000, but also the biggest year-over-year price gain at 32.8%, per the Real Estate Data Aggregator. Volume jumped 51.6%. It took longer to sell than a year ago, but more buyers showed up.

ZIP 95112 tightened over the year. The Real Estate Data Aggregator showed supply drop 1.5 months, inventory fall 24.6% and the above-list share rise 4.4 points. Price slipped just 0.9%. That is a market finding its floor.

The broader picture: prices ticked up, rates did not help

Redfin reported U.S. home prices rose 0.25% month over month in August on a seasonally adjusted basis, and 3.7% year over year, the fastest annual pace in a year.

The Federal Housing Finance Agency put U.S. house prices up 0.3% from June to July and 2.6% from July 2025 to July 2026.

Rates are not helping buyers. Realtor.com reported mortgage rates topped 7% for the first time since January 2025. Redfin noted a Redfin economist flagged rates sitting above 7%. Nationally, Redfin reported 21% of sellers dropped asking prices in the four weeks ending September 20. Realtor.com put price cuts at 20.8% of listings in September, up 0.9 points year over year.

Silicon Valley's tightest ZIP codes are not feeling that the same way the national data does. But the softer pockets here are.

What the whole market looked like together

Pending sales of 935 against 593 active listings is a ratio that leans toward sellers in aggregate. But that aggregate hides 13.8 months of supply in one ZIP and 1 month in another.

Milpitas: more inventory, still selling

ZIP 95035, which covers much of Milpitas, had inventory rise 61.4% year over year, per the Real Estate Data Aggregator. Supply reached 2.4 months. Median price fell 8.1% to $1,310,000. But 56.7% of homes still sold above list. Nearly half went under contract within two weeks. More supply, but still competitive.

One street can read differently from the whole ZIP