Silicon Valley Real Estate Market January 2026 What’s expected in 2026 Forecasts are calling for roughly 5% growth in home sales this year, slight improvement from 2025. Housing Inventory and Jobs In many markets, housing inventory is closely tied to job mobility: people are less likely to list and relocate when they don’t feel confident about job prospects in the area they’re moving to. That dynamic can even lead to “split households,” where families temporarily live in two locations—one anchored around children’s school stability, and the other around where employment opportunities are strongest. San Francisco in the News Toward the end of last year, the withdrawal rate (deals falling out of contract) increased, reflecting added friction in the market. At the same time, San Francisco pricing turned positive starting in June, largely motivated by AI-driven job growth. And it was the only Bay Area city to show a positive turn last year. Interest Rates Duration While interest rates matter, it’s not just the level of rates—it’s also the duration. We’ve now had about three years of 6%+ mortgage rates, and even though many buyers have been waiting for rates to come down, markets tend to respond most when lower rates are sustained over a longer period. Looking ahead, employment trends should be a key guide: if unemployment rises, rates may move lower to boost confidence in home ownerships. Resources Available Compass remain the strong #1 leader in real estate locally and nationally. If you have any questions or need real estate resources nation wide, I am happy to help. Please feel free to reach out. Our goal is to bring genuine care, outstanding real estate services, and significant value, in order to positively impact our communities and clients.   Below also are Bay Are Home Sales Volume vs. Interest rate, and stats for the last 24 months in Santa Clara and San Mateo counties. Stats in other areas are available upon request.

Santa Clara County

last 24 months

San Mateo County

last 24 months