The DeLeon Insight - May 2026 by DeLeon Realty

• Washington State Bans Pocket Listings: Who's Next?

• 2026: The Best Luxury Selling Window Since 2021

• DeLeon's Summer Splash Promotion

• Strong Strategy in a Soft Market: Importance of the Right Team

Market Conditions By City

$10,000,000

$9,000,000

$8,000,000

$7,000,000

$6,000,000

$5,000,000

$4,000,000

$3,000,000

$2,000,000

$1,000,000

Average sale price for single-family homes from 4/2024 to 4/2025, compared to the period from 4/2025 to 4/2026.

Price per square foot ratio for single-family homes from 4/2024 to 4/2025, compared to the period from 4/2025 to 4/2026.

Average Sale Price

4/2024 - 4/2025 4/2025 - 4/2026

Price/Square Foot Ratio

4/2024 - 4/2025 4/2025 - 4/2026

Source: MLSListings, Inc., as of April 29, 2026

Criteria: Single Family Residential

Atherton Los Altos Los Altos Hills Menlo Park Mountain View Palo Alto Portola Valley Redwood City San Carlos Sunnyvale Woodside

By Alexander Lewicki, Esq.

By Ken DeLeon

Managing Broker: Ken DeLeon

WE ARE LOCATED AT: 1717 Embarcadero Road, Palo Alto, CA 94303

Founder & Managing Broker — Ken DeLeon

CEO — Alex Wilbur DeLeon

Director of Listings — Francis Lopez and Audrey Sun

General Counsel — Colette Thomason

CONTRIBUTORS:

Ken DeLeon (DRE #01342140), Alexander J. Lewicki (DRE #02189814), and Audrey Sun (#01933274)

By Ken DeLeon

By Audrey Sun

DISCLAIMER: As prominent members of the real estate community, we respect all pre-existing listing agreements. If your home is currently under a listing contract, or if you are contractually obligated to work with a particular agent because you signed a Buyer Broker Agreement or similar form, please do not construe this publication as a soliciation. On the other hand, if you have not yet selected an agent, we urge you to consider our team's resources and design acumen, as demonstrated in this proprietary publication, which was created completely in-house by our talented marketing team.

Advertising. All rights reserved. DeLeon Realty is not a law firm and the publication of this information does not create an attorney-client relationship with this brokerage or any of its members. Likewise, the material in this publication does not constitute a solicitation and is not intended to provide legal advice. The content in this publication is informational only and may not reflect current legal developments. This publication should not be used as a substitute for obtaining legal advice from an attorney licensed or authorized to practice in your jurisdiction. You should always consult a suitably qualified attorney regarding any specific legal problem or matter. DeLeon Realty expressly disclaims all liability with respect to actions taken or not taken based on any or all the contents of this publication. See also deleonrealty.com for additional disclaimers.

Legal services are provided by the Integra Law Group, LLP at no additional charge to our clients after execution of a retainer agreement and conflict waiver.

Washington State Bans Pocket Listings: Who’s Next?

By Alexander Lewicki, Esq.

They go by many names: pocket listings, private exclusives, off-markets. What was once an uncommon practice, generally reserved for highly private sellers, has become the hottest topic in real estate. In fact, a 2025 poll by Zillow/Harris found that 63% of people who sold a home within the past five years were recommended by their agent to list on a private listing network, up from 18% for those who sold more than five years ago. That same poll found that 68% of respondents had not had an agent explain the difference between listing on the multiple listing service (MLS) and listing on a private network. Now that’s what I call a curious statistic!

Undoubtedly, these pocket listings are outstanding for agents: eliminating marketing expenses, providing bait to attract buyers into exclusive representation agreements, shifting pressure away from strategic pricing recommendations based on market expertise, and ultimately keeping commissions within the brokerage. While brokerages cloak their intentions by saying "offmarkets" provide seller choice, the focus is generally maximizing agents' commissions. So who's looking out for consumers?

Thankfully, a handful of states have begun to take a stance and push back against a brewing monopolization of the industry. The first state to do so, Wisconsin, passed State Act 69 in late 2025, requiring agents to market listings on platforms available to the general public within one business day of authorization to sell, unless a seller signs and consents to a specific opt-out disclosure. The disclosure requires sellers to state why they are opting out and acknowledge that reduced exposure may lead to a lower sale price. This law is slated to go into effect in January 2027.

In March 2026, Washington took an even stronger stance by passing SB 6091, which states: “A broker may not market the sale or lease of residential real estate to a limited or exclusive group of prospective buyers or brokers, or any combination thereof, unless the real estate is concurrently marketed to

the general public and all other brokers.” The only exception is if necessary to protect the health or safety of the owner or occupant. The short version: this law effectively bans pocket listings, office exclusives, or whatever the latest scripted listing pitch calls them. And it wasn’t a close decision, passing unanimously through the state Senate and 92–1 in the House.

Additionally, lawmakers in Connecticut, Hawai‘i, and Illinois have proposed similar bills aimed at promoting public marketing of listings and curbing or eliminating pocket listings altogether. And I suspect that several states, with California likely among them, will propose similar laws in the not-sodistant future.

In championing the new Washington state law, sponsor Marko Liias stated: “When buyers and renters search for their next place to call home, they should have full confidence that Washington’s housing market is open, fair, and transparent.” I could not agree more.

If you’re looking for a Realtor who will be a champion of your best interests and market your listing to the largest group of buyers, reach out to DeLeon Realty.

35 Barry Lane, Atherton

Why 2026 Is the Strongest Luxury Selling Window Since 2021

By Ken DeLeon

With the conflict in the Middle East increasing geopolitical concerns along with mortgage rates, one would anticipate that the Silicon Valley luxury market is cooling down. While listings in lower price ranges, and particularly condos have seen demand drop in the last few months, the luxury market is not just holding steady – it is enjoying its strongest performance in five years.

What is driving demand and propelling high-end Silicon Valley homes to new heights?

The first driver is structural inventory scarcity. Many homeowners remain anchored to sub-3 percent mortgage rates and have been reluctant to trade into higher borrowing costs. That has artificially suppressed new luxury listings. The result is a meaningful shortage of high-quality inventory. When supply is constrained in a market where wealth continues to expand, pricing power quietly, and consistently, builds beneath the surface.

The second, and more powerful, force is the resurgence of equity-driven demand. The continued rise of AI and technology companies has created a new wave of liquidity. Secondary transactions, tender offers, and stock-based compensation are generating real

purchasing power, much of which is concentrated in Silicon Valley. Historically, a meaningful portion of that capital flows directly into residential real estate, and that trend is accelerating once again.

The greatest drivers of luxury demand in 2026 are AI founders and executives, coupled with renewed interest from international buyers. The DeLeon Team inherited an Atherton listing at $24M that had two other agents list the home earlier for a total of three years. The property had received no offers and little interest. With our designer transforming the home’s appearance through lightening, brightening, and staging, combined with our extensive marketing, we generated multiple offers in just over a week. The winning offer came from an AI executive who beat out two international buyers our marketing attracted, underscoring the depth and intensity of today’s luxury demand.

Supply has become so limited that I was able to secure an approximately $35M Atherton estate under construction for my AI founder client by sending a multitude of letters to homeowners whose properties I felt would be a strong fit. Thankfully, I found an owner open to selling. This is increasingly what it takes to win in today’s market.

SELLER TESTIMONIAL

After working with Ken and the DeLeon Team and selling my home with multiple offers above list price in 8 days, I can see why the DeLeon Team is #1 in Atherton. The DeLeon Team did an exceptional job orchestrating the strategy for presenting my home, and the marketing they generated was exceptional. The DeLeon Team also did a great job preparing my home for the market, with Lawrence, the designer, greatly improving the look of my home at a very low cost while his Field Coordinator Ricky did a great job doing the repairs and improvements that Lawrence recommended. The Chinese marketing and brochure in Mandarin were very useful for the Chinese buyers who came through and offered on the home.

I had earlier worked with two of the top agents in Atherton and during the three years we were on the market, I did not receive any offers. The DeLeon Team was markedly different in that they brought so much more strategy, vision and greater marketing and reach than the other agents. I am now recommending the DeLeon Team to all of my family and friends as I personally understand how much better they are to work with than any other agent in the Atherton marketplace.

- Seller of 35 Barry Lane

With very little active inventory, great agents need to get creative to uncover opportunities. Luxury homeowners should contact me directly (ken@deleonrealty.com), as I have by far more luxury buyers than any other agent, with over $400M in personal buyer sales just last year alone. For sellers who reach out to me directly, many of my buyers will pay my commission and the sellers’ closing costs, further strengthening a seller’s net outcome.

With OpenAI recently leasing a 450,000-square-foot building in Mountain View, AI is spreading further into Silicon Valley, and the resulting equity creation is poised to translate into even higher prices in the luxury market.

Timing matters. There is typically a lag between equity events and housing purchases as buyers process liquidity and align on lifestyle decisions. We are now entering that window, as several of my startup clients have recently sold shares on secondary markets and are now actively looking to purchase homes.

At the same time, interest rates continue to create a psychological overhang in the broader market, leading to a bifurcation that further benefits luxury sellers. Ratesensitive buyers in the mid-market are more cautious,

while equity-rich buyers at the top remain decisive and aggressive. For sellers, this creates a strategic advantage. You are not competing against a flood of inventory, and your likely buyer is less constrained by financing and more focused on securing the right property.

The key risk is future competition. If rates decline, a wave of deferred listings may enter the market at once. Conversely, as 7-year ARM mortgages taken out during the lowest-rate period in 2020 are set to expire, more inventory is projected to hit the market. For now, however, the current environment offers something rare: strong, equity-fueled demand paired with exceptionally limited supply.

The conclusion is straightforward. By the time conditions feel perfect, the opportunity has passed. In Silicon Valley today, the combination of constrained inventory and new wealth generation has opened a window that strongly favors sellers who act decisively and list with DeLeon Realty. For luxury homeowners considering a sale, 2026 may prove to be the most strategic moment since 2021 –and one of the most advantageous selling environments of the past decade.

Jump Into the Market During Summer Splash

By Ken DeLeon

Summer should be one of the best times of year to sell a home in Silicon Valley. Many buyers have families, and summer provides the ideal transition window. Buyers relocating to Silicon Valley can allow their children to finish the school year in June, purchase a home in July, and register their children in their new school district before classes begin in August.

Given these advantages, why do many agents tell sellers to wait until fall?

The answer is that fall is often more convenient for the agent. Many agents use the summer to take long vacations in Tahoe or Europe. Since real estate is relationship-driven and requires constant communication, agents may not want sellers launching a listing while they are away. Also, summer can require extra marketing to cut through vacation distractions, and most agents prefer to minimize marketing expenses.

At DeLeon Realty, we take a different approach. We know summer can be a powerful time to sell, and we schedule our vacations around Christmas, when the market is hibernating. That allows us to be fully engaged when serious summer buyers are active.

This is why we created our Summer Splash marketing campaign. We strategically cluster our summer listings to hit the market after July 4th, creating two weeks of intensive marketing that generates extraordinary attention for our clients’ homes. We spend six figures beyond our already expansive marketing program to shine a brighter spotlight on our Summer Splash listings. Now in its 11th year, Summer Splash has delivered exceptional results, including one listing last year selling for more than $1 million above its list price.

In addition to the school year timing, here are several reasons summer can be an ideal time to sell:

1. Relocations are especially common during the summer. With Silicon Valley being the epicenter of AI innovation, many executives and founders are moving into the area.

2. Families often have more time to view homes. With children out of school, house hunting can happen seven days a week.

3. Longer daylight creates more showing opportunities. Silicon Valley has roughly five more hours of daylight near the summer solstice than the winter solstice, giving buyers more touring time.

4. Homes often photograph and show better in the summer, with stronger natural light, greener landscaping, and more inviting outdoor spaces.

5. Outdoor amenities have maximum emotional impact. Relaxing pools and expansive lawns feel far more compelling when buyers can envision enjoying them immediately.

6. There is often less competing inventory because many sellers wait until fall. That can help a wellprepared summer listing stand out.

7. Buyers want housing certainty before school and fall commitments resume.

Some agents who lack DeLeon Realty’s marketing budget may try to rationalize why summer buyers are difficult to reach. We see the opposite opportunity. With the right preparation, pricing, exposure, and execution, summer can be a hot time for sellers to showcase and sell their homes.

So jump into Summer Splash. The water is warm, the buyers are serious, and DeLeon Realty is ready.

DELEON REALTY’S ANNUAL SUMMER SPLASH

This July, seize a rare opportunity to stand out when inventory is low and buyer demand is high! Summer Splash is designed to put your home front and center at exactly the right moment.

Our Summer Splash listings are powered by Silicon Valley’s most comprehensive marketing campaign, spanning TV, radio, Chinese media, social platforms, and direct mail, all strategically aligned to drive attention, create urgency, and deliver exceptional results.

SUMMER SPLASH SELLER BENEFITS INCLUDE:

• Premium placement in the Summer Splash section of The DeLeon Insight (~80,000 homes)

• A multi-page feature booklet inserted in The Almanac and Palo Alto Weekly

• Targeted digital and social media campaigns

• Advertising across local and Chineselanguage newspapers

• Global marketing outreach to international buyers

• Summer-themed experiences at select open houses to boost engagement

How to Reduce or Defer Capital Gains When Selling

Your Home

By Ken DeLeon

In Silicon Valley, many homeowners have effectively won the real estate lottery. Over the past several decades, home values here have appreciated far more dramatically than in most parts of the country. That is a wonderful outcome, but it also creates a very expensive first-world problem: enormous built-in capital gains when it comes time to sell.

For many Silicon Valley homeowners, the standard capital gains exclusion is helpful, but hardly a complete solution. A married couple can generally exclude up to $500,000 of gain under Section 121 of the Internal Revenue Code if they satisfy the ownership and use requirements. In lower-priced markets, that may eliminate most or all the taxable gain. In Silicon Valley, however, a $500,000 exclusion is often just a small dent in the appreciation.

The good news is that, with proper planning, some homeowners can combine two of the most powerful provisions in the tax code: Section 121 and Section 1031. Used correctly, these provisions may allow a homeowner to exclude up to $500,000 of gain while deferring the remaining gain through utilizing a likekind exchange into investment property. This is one of the most elegant tax planning opportunities available in real estate.

Section 121 is the familiar principal residence exclusion, providing up to $500,000 in capital gains exemption for married couples. Importantly, your home does not need to be your principal residence on the exact date of sale, but rather for just two of the last five years, and that creates an important planning window.

If you have lived in your home for at least two years, you may be able to move out and convert the property into a bona fide investment property by renting it at fair market value. If the property is then held long enough and used in a manner consistent with investment intent, it may become eligible for a Section 1031 exchange. At that point, the homeowner may be able to exchange the former residence for other investment real estate and defer the remaining capital gain.

In practical terms, the cleanest structure often looks like this: live in the home for at least two years, move out, rent it out as a genuine investment property for roughly two years, and then complete a Section 1031 exchange before you fall outside the five-year lookback period for Section 121. That allows you to preserve eligibility for the principal residence exclusion while also positioning the property as investment property for exchange purposes.

If done properly, the result can be extremely powerful. A couple may exclude the first $500,000 of gain under Section 121 and defer additional gain under Section 1031 by rolling the proceeds into a replacement investment property. In other words, you may be able to take up to $500,000 of gain tax-free to use however you would like and defer the rest.

The replacement property options under Section 1031 are also quite flexible. The replacement property can generally be located anywhere in the United States and can be several types of investment property, including single-family homes, an apartment building, or even a fractional share of a shopping mall.

From an estate planning perspective, the benefits can be even greater. If the exchanged investment property is held until death, or if you use the 1031 exchange again, heirs generally receive a step-up in basis to fair market value at death under current law. In that case, the deferred capital gain may never be recognized at all. That is one reason sophisticated real estate investors often view 1031 exchanges as part of a long-term tax and estate planning strategy, not merely a short-term deferral tool.

Of course, this strategy must be executed carefully. The property must truly be converted to investment use. Timing matters. Rental terms matter. Personal use matters. Depreciation and non-qualified use rules can also affect the ultimate tax result. This is not an area for casual guesswork or cocktail-party tax advice.

At DeLeon Realty, we bring legal, estate planning, and real estate experience to these issues. We regularly help clients think through how to optimize their real estate portfolios, whether that means reducing capital gains exposure, carrying over a favorable property tax basis, evaluating installment sale structures, or coordinating broader real estate and estate planning strategies. In a market like Silicon Valley, where appreciation can create extraordinary wealth and equally extraordinary tax exposure, thoughtful planning can make an enormous difference.

The right strategy is not simply about selling a home. It is about preserving more of the wealth that home created.

If you are considering a sale and want to explore the most effective structure for your situation, we would be happy to help you think through the most optimal options for your personal circumstances.

• 4 Bedrooms

• 3 Bathrooms

• 1,316 Sq. Ft. Home

• 6,002 Sq. Ft. Lot

• Exceptional location

• Warm and inviting

• Spacious backyard patio

• Top schools

985 OREGON AVENUE, PALO ALTO

Offered at $2,488,000 985Oregon.com

• 3 Bedrooms

• 2 Bathrooms

• 1,512 Sq. Ft. Home

• 9,100 Sq. Ft. Lot

• Prime location

• Spacious living areas

• Generous backyard

• Top schools

• 4 Bedrooms

• 4 Bathrooms

• 3,258 Total Sq. Ft.

• 13,301 Sq. Ft. Lot

• Sunlit interiors

• Spacious living areas

• Detached guest house

• Top-rated schools 425 CLAREMONT WAY, MENLO PARK Offered at $4,888,000 425ClaremontWay.com

• 4 Bedrooms

• 2 Bathrooms

• 2,220 Sq. Ft. Home

• 10,010 Sq. Ft. Lot

at $4,488,000 675Evergreen.com BRIGHT AND INVITING IN LINFIELD OAKS

• High-end modern finishes

• Luxe primary suite

• Energy-efficient upgrades

• Top-rated schools

Soft Market, Strong Strategy: Why the Right Team Matters More Than Ever

By Audrey Sun

As we move through the 2026 real estate market, one thing is clear: the landscape has shifted. This spring has been slower than what Silicon Valley sellers are used to, and the market has become increasingly bifurcated. Entry-level homes around $2M are experiencing softness, while luxury properties above $5M remain relatively stable. Well-located, wellprepared homes are still attracting multiple offers, but where sellers once saw 20-plus offers, many are now seeing just 3 to 4.

That change matters.

In a market like this, the difference between a good outcome and a great one often comes down to strategy and execution. Sellers can no longer rely on momentum alone. Presentation, positioning, and precision have never been more critical. This is where the power of a true team becomes undeniable.

Many sellers assume that hiring a strong individual agent is enough. The reality is that no single person can master every skill required to maximize a home’s value. Preparing and marketing a home today demands expertise across multiple fields.

You need design insight to determine which improvements will deliver the highest return, along with staging that complements the home’s architecture and target buyer. You need home repair knowledge to identify and address issues before they appear on inspection reports. You need sophisticated marketing with high-quality visuals, compelling storytelling, and targeted outreach that resonates with both local and international buyers. You also need a deep understanding of disclosure laws to protect the seller while maintaining buyer confidence.

That is not one job. That is a team.

At DeLeon Realty, we have built our entire model around this reality. Instead of relying on a single agent juggling multiple roles, we bring together inhouse, salaried specialists dedicated to each aspect of the process. Our in-house interior designers manage renovations and staging with intention and efficiency. Our skilled handymen proactively address issues before they impact value. Our marketing team crafts tailored campaigns that speak directly to today’s buyers, including international audiences. Our in-house real estate attorney ensures disclosures are handled with precision and care.

This is not a collection of third-party vendors. It is a coordinated system designed to deliver results.

In a softer market, details are no longer optional. They are the difference between standing out and sitting on the market, between multiple offers and missed opportunities, between meeting expectations and exceeding them.

The sellers who succeed in today’s environment are not just listing their homes. They are strategically positioning them with the right team behind them.

If you are considering selling, the question is not just who will represent you. It is what kind of team is working for you.

Because in this market, strategy wins, and execution is everything.

LOS ALTOS

$7,000,000

$6,000,000

$5,000,000

$4,000,000

$3,000,000

$2,000,000

$1,000,000

LOS ALTOS HILLS

$4,000,000 $4,500,000

$3,500,000

MENLO PARK

Menlo Park Inventory # of New Listings

MOUNTAIN VIEW

Mountain View Inventory # of New Listings

PALO ALTO

$10,000,000

$9,000,000

$8,000,000

$7,000,000

$6,000,000

$5,000,000

$4,000,000

$3,000,000

PORTOLA VALLEY

WOODSIDE

$1,900,000

$1,800,000

REDWOOD CITY

Redwood City Inventory # of New Listings

$1,000,000

$500,000

SAN CARLOS

San Carlos Inventory # of New Listings