The Silicon Valley housing market continues to evolve, shaped by shifting interest rates, tech industry dynamics, and persistent demand for quality homes in top school districts. Here’s what The Norcia Team is seeing on the ground as we move through 2026.
Inventory Is Still Tight — But Improving
While we’re seeing more listings come to market compared to the ultra-tight conditions of recent years, inventory remains well below historical norms across the South Bay. Communities like Los Gatos, Saratoga, and parts of West San Jose continue to see limited supply, particularly for move-in-ready homes in top school districts. This imbalance keeps prices firm and competition steady for well-positioned properties.
Interest Rates Are Stabilizing
After the volatility of recent years, mortgage rates have settled into a more predictable range. Many buyers who were waiting on the sidelines are re-entering the market, recognizing that waiting for dramatically lower rates may mean facing stiffer competition and higher prices. The savvy move for many buyers right now is to secure a home at today’s prices with the option to refinance if rates drop further.
Tech Industry Remains the Engine
Silicon Valley’s real estate market has always been driven by the tech sector, and that hasn’t changed. Despite headlines about layoffs and restructuring at some firms, the broader tech ecosystem remains robust. AI-focused companies are expanding aggressively, and the concentration of talent and capital in the South Bay continues to support housing demand — particularly in the mid-to-high end of the market.
What This Means for Sellers
If you’ve been considering selling, the current market offers a compelling window. Limited inventory means less competition from other sellers, and well-prepared homes in desirable neighborhoods are still generating strong interest and competitive offers. The key is pricing strategically and presenting your home at its absolute best — staging, professional photography, and targeted marketing make a measurable difference in final sale price.
What This Means for Buyers
For buyers, patience and preparation are your greatest assets. Get pre-approved, understand your must-haves versus nice-to-haves, and be ready to move decisively when the right home comes along. In communities like Mountain View, Campbell, and Almaden Valley, well-priced homes are still attracting multiple offers within the first week on market.
The Norcia Team Market Perspective
We believe 2025 represents a window of relative stability in the Silicon Valley market — a moment where both buyers and sellers can transact with confidence if they have the right strategy and local expertise guiding them.
Want to know what your home is worth in today’s market? Contact The Norcia Team for a complimentary market analysis.
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Posted on February 19, 2026 by The Norcia Team in Uncategorized
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