Fewer buyers are paying over asking for single-family homes across much of the Midpeninsula — with a couple of notable exceptions. December sales data released this week by the California Association of Realtors shows that Mountain View and Los Altos stand out, with more buyers paying above list price and fewer sellers dropping their asking prices. Homes in Mountain View sold in just two days on average, while in Los Altos about 73% of buyers paid over a home’s list price. Overall, prices remain high on the Peninsula, but the data suggests that a combination of slower competition in some areas and more price reductions in others could reflect a market slowly shifting after years of fierce demand.
The December data, which compares activity to the same month the previous year, offers a snapshot of trends during a traditionally slower month, highlighting how buyers and sellers are responding to changing market conditions. This data covers the sale of single-family homes and condominiums across six Midpeninsula cities during December 2025.
Palo Alto
- Fewer buyers paying over list price than last year
- More sellers reducing asking price than last year
Palo Alto’s market shows signs of cooling, though prices remain high. The median list price per square foot for single-family homes was $1,716 in December, with some homes listed as high as $3,362. Around 40% of buyers paid over list price, down from 48% the previous December. Sellers also trimmed prices more often, with roughly 26% reducing their asking prices — up from about 24% the previous year. There were 32 recorded home sales during December, according to data from Redfin.
Mountain View
- Homes selling much faster
- More buyers paying over asking
- Few sellers reducing prices
Mountain View’s median price per square foot was $1,665, slightly below its neighboring cities, but homes moved quickly, averaging just two days on the market — roughly 48 days faster than the previous December. About 85% of buyers paid over asking, up from 65% a year earlier. There were 38 recorded home sales during December, according to data from Redfin.
Los Altos
- More buyers paying over asking
- Fewer sellers reducing list price
Competition in Los Altos intensified in December, with 73% of buyers paying above asking, up from 63% last year. Fewer sellers reduced prices, about 20%, down from 23% in 2024. The median price per square foot reached $1,775, with the highest sales at $2,977. There were 46 recorded home sales during the month of December, according to data from Redfin.
Redwood City
- Fewer buyers paying over asking
- Fewer sellers reducing list price
Redwood City saw cooling buyer competition. Only 42% of buyers paid over list price, down from 57% last year. About 19% of sellers lowered prices, compared with 23% a year earlier. Homes averaged 36 days on the market, with a median price per square foot of roughly $1,000, reflecting relative affordability compared with other Peninsula cities. There were 37 recorded home sales during the month of December, according to data from Redfin.
Menlo Park
- Homes selling faster
- Fewer buyers paying over list price
- Number of sellers reducing list price unchanged
Single-family homes in Menlo Park moved quickly, averaging 11 days on the market, down from roughly 36 days the previous December. About 43% of buyers paid over list price, down from 49% the previous year. Only 14% of sellers reduced their prices, unchanged from 2024. The median list price per square foot was $1,925. There were 17 recorded home sales during December, according to data from Redfin.
East Palo Alto
- Homes on the market longer
- Fewer buyers paying over list price
East Palo Alto’s market slowed considerably. Listings lingered 58 days on average — more than double last year’s 25 days. Roughly 40% of buyers paid over asking, compared with 58% the previous year. About 21% of sellers reduced prices, slightly down from 21.8% the previous year. The median list price per square foot was $905, with the highest reaching $1,354. There were eight recorded homes sales during December, according to data from Redfin.
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