What the Palo Alto price trend shows
Palo Alto values dipped in 2022 and 2023 and have since climbed to new highs. Zillow's typical home value was $3,431,236 in March 2022, fell to $3,058,496 by March 2023, then recovered to $3,370,358 in September 2024 and $3,391,426 in September 2025. It rose to $3,551,070 in January 2026, eased through June, then climbed again to $3,592,240 in September 2026. Over five years the gain is 17.1% and over ten years 58.3%.
That is a different picture from the county. Redfin's median sale price for all of Santa Clara County was $1,568,490 in September 2026, 4.7% lower than a year earlier (a provisional monthly figure). Palo Alto's three-month Redfin median rose 0.9% over the same period while its price per square foot rose 10.7% to $2,021. A flat median with a rising price per square foot usually means smaller or older homes made up more of the sales mix, not that prices stalled.
Palo Alto prices against nearby cities
On Zillow's typical home value for September 2026, Palo Alto ($3,592,240) sits above Menlo Park ($2,898,368), Cupertino ($2,957,922) and Mountain View ($1,929,681), and below Los Altos ($4,591,005), Los Altos Hills ($5,922,714) and Atherton ($8,632,097). Compare it with our Los Altos and Mountain View guides if you are weighing both sides of San Antonio Road.
What local MLS data adds
Palo Alto Online's analysis of MLSListings data for single-family homes, January to August 2026, put the citywide median at $4.125 million, up 7.8% from $3.825 million a year earlier, on 270 sales, down 6.6%. Roughly one third of those sales closed more than $500,000 above asking and nearly 40% were all-cash. This measure covers houses only, so it runs higher than the Zillow and Redfin figures, which include condos and townhomes.
Sale speed, price cuts and inventory in Palo Alto
How fast Palo Alto homes sell
Redfin's median days on market in Palo Alto was 13 for the three months to September 2026, against 19 for the county in September. Of homes listed, 56.6% went under contract within two weeks, and 58.7% of sales closed above list price. The average home sold for 107.1% of its list price, which on a $3.3 million asking price is more than $230,000 over.
Why list prices understate Palo Alto sale prices
Redfin's median list price in Palo Alto was $3,267,231, about $340,000 below the median sale price. Many Palo Alto sellers list below expected value to draw multiple offers, so the asking price is a poor guide to what a house will cost. Ask any agent you interview for the sale-to-list ratio on the last ten comparable sales in the neighborhood.
Palo Alto inventory and new listings
Supply is rising from a very low base. Redfin counted 92 active listings, up 47.6% on a year earlier, and 188 new listings in three months, up 19.7%. Sales rose 2.3% to 135. That leaves 2.1 months of supply, still a short supply by any common yardstick. In the wider San Jose metro, Zillow found 22.5% of listings had a price cut in September 2026, a reminder that overpriced homes still sit.
Palo Alto home prices by ZIP code
Redfin publishes three-month figures for the two Palo Alto ZIPs with enough sales, 94301 and 94306. Zillow figures are for September 2026. Do not compare the two sources line by line; use each to compare ZIPs with each other.
| ZIP | Redfin median sale price | 1-year change | Days on market | Sale to list | Zillow typical value |
|---|---|---|---|---|---|
| 94301 | $4,207,264 | -20.2% | 12 | 107.4% | $4,337,456 (+8.7%) |
| 94306 | $3,413,997 | +6.0% | 15 | 106.7% | $3,368,178 (+6.0%) |
| 94304 | Not published | n/a | n/a | n/a | $3,193,983 (+3.2%) |
94301: north Palo Alto and downtown
94301 had 39 sales in the three months to September 2026. Its Redfin median fell 20.2% because the same period in 2025 included an unusually high $5,275,000 median; the single-family price per square foot actually rose 20.5% to $2,460. Zillow's measure, which smooths out the sales mix, shows an 8.7% gain. Inventory was 36 homes, or 2.9 months of supply, the loosest in the city.
94306: south Palo Alto
94306 is the busier ZIP, with 58 sales. Single-family homes there sold for a median of $3,864,025, up 12.8%, at 109.2% of list, and 71.4% closed above asking. Condos were a different market: a $1,294,962 median, 59 days on market and 99.3% of list.
For every ZIP, including 94303 and 94304, see our Palo Alto ZIP codes guide.
Condos, houses and luxury homes in Palo Alto
Palo Alto single-family homes
Houses are most of the market. In 94306, 43 of 58 sales in the three months to September 2026 were single-family homes; in 94301, 31 of 39. Expect to compete: single-family homes in both ZIPs sold in a median of 12 days.
Palo Alto condos and townhomes
Attached homes are the main way to buy in Palo Alto for under $2.5 million. Redfin's median condo sale was $2,099,938 in 94301 (five sales) and $1,294,962 in 94306 (ten sales); townhomes in 94306 had a $2,097,503 median on four sales. Small samples swing a lot, so read them as ranges. See our Palo Alto condos guide for buildings, HOA costs and inspections.
Palo Alto luxury sales
The top end moved fastest in 2026. In Palo Alto Online's MLS analysis, Old Palo Alto's single-family median rose 57.6% to $9.14 million, and 14 Palo Alto homes sold for more than $10 million in January to August 2026, up from 7. Ten of those 14 were in Old Palo Alto.
Palo Alto new construction
New homes are mostly townhome communities on former commercial sites and single rebuilt houses on existing lots. SummerHill Homes' 28FIFTY in Midtown listed a three-bedroom quick move-in home at $1,698,000 in November 2026. Our Palo Alto new construction guide lists active communities.
Is now a good time to buy a home in Palo Alto?
It depends on how long you plan to stay and how you will pay. The data do not point to a buyer's market: homes sell in under two weeks, at a 7% premium to list, and values are at a record. What has changed is choice. Active listings are up almost half on a year ago, so buyers see more homes at once and sellers face more competing listings.
Financing is the big variable. Freddie Mac's 30-year rate averaged 7.24% in the week of October 29, 2026. With 20% down on Zillow's typical Palo Alto value, the loan is about $2.87 million, which in most cases means a jumbo loan; ask your lender for this year's conforming loan limit in Santa Clara County. Principal and interest at 7.24% come to about $19,585 a month before property tax and insurance. Many Palo Alto buyers pay cash or put down far more than 20%, which is why nearly 40% of house sales were all-cash.
Before you offer, read the local disclosures, the city's sewer lateral and permit history, and the Santa Clara County property tax guide, since your bill resets to the purchase price. First-time buyers can start with our California first-time buyer guide.
Is now a good time to sell a home in Palo Alto?
For a well-prepared single-family house, the numbers favor sellers: 58.7% of Palo Alto sales closed above list, and houses in 94306 sold at 109.2% of list in a median of 12 days. The risk is the rising inventory. With 92 active listings rather than about 62 a year ago, a house that is priced high or needs work can sit, and the San Jose metro share of listings with price cuts was 22.5% in September 2026.
Condo and townhome sellers face a slower market, with condos in 94306 taking a median of 59 days to sell. Long-time owners should also price in capital gains: a home bought decades ago in Palo Alto can carry a gain far larger than the federal home-sale exclusion covers. See our guide to capital gains on a California home sale and the transfer tax guide before you set a net price.
Palo Alto housing market outlook
We do not make our own forecasts. Zillow's Home Value Forecast for the San Jose metro, based on September 2026 data, expects values to change by -0.2% by October 2026, -1.0% by December 2026 and +1.9% by September 2027. That is a metro-wide call and covers far cheaper cities than Palo Alto.
Three local factors are worth watching. First, supply: the city's Housing Element plans for 6,086 new homes in 2023 to 2031, mostly apartments and townhomes, which adds condo and townhome choice more than single-family houses. Second, the stock market and private-company payouts, which drive a large share of all-cash purchases here. Third, rates: each move in jumbo rates changes the monthly cost of a $3 million loan by hundreds of dollars. For the statewide picture, read our California housing market guide.