Market Conditions By City
Price/Square Foot Ratio
$3,000 $2,500 $2,000 $1,500 $1,000 $500 $0
Atherton
Los Altos
Los Altos Menlo Park Mountain Hills View
Palo Alto
Portola Valley
Redwood San Carlos Sunnyvale Woodside City
Price per square foot ratio for single-family homes in 3 years (since September 2023). 9/2023 - 9/2024
9/2024 - 9/2025
9/2025 - 9/2026
Average Sale Price $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0
Atherton Los Altos Los Altos Hills
Menlo Mountain Palo Alto Park View
Portola Redwood San Carlos Sunnyvale Woodside Valley City
Average sale price for single-family homes in 3 years (since September 2023). 9/2023 - 9/2024
9/2024 - 9/2025
9/2025 - 9/2026 Source: MLSListings, Inc., as of October, 20, 2026 Criteria: Single Family Residential
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THE DELEON INSIGHT
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R E A L E S TAT E D E S I G N
What Today’s Buyers Are Drawn to in Home Design By Lawrence Chleboski, DeLeon Design Coordinator
When preparing a home for sale, it can be tempting to chase the latest design trends. But in my role as Design Coordinator for DeLeon Realty, I’ve found the goal shouldn’t be to have the most dramatic kitchen or boldest paint colors. What matters more is how the home feels when you walk through it. I find that buyers respond to homes that feel comfortable, sophisticated, and well put together without being overly formal or decorated. I think of it as quiet luxury, where the design feels thoughtful, but nothing is trying too hard. For me, that starts with looking at what the home already has to offer. Beautiful hardwood floors, architectural details, quality woodwork, natural light, and views can all make a strong impression. Sometimes, the best thing you can do is remove distractions. Too many colors, patterns, or competing focal points can make a home feel busy, even when the individual pieces are beautiful. I also think it's important to work with the style of the house rather than impose a particular look on it. I start with the architecture and build the color palette around it. A paint color that works beautifully in one home may look completely different in another, depending on the light, flooring, cabinetry, countertops, and trim. White paint is a good example. I've worked on several homes recently where a slightly warmer or darker white was the right choice. The challenge is brightening the space without making the existing trim look yellow. On one larger project this past year, I wanted to avoid repainting all the wainscoting and trim. Instead, I had three shades of white painted in different areas of the house. Seeing them in different lighting helped me find the right color, which worked throughout the home and enhanced the existing off-white trim and moldings. I also pay attention to how rooms relate to one another. Consistent flooring, wall colors, and finishes help the home feel connected. I generally prefer hardwood floors with the same matte finish and tone throughout, along with consistent carpet and wall colors where appropriate. Lately, I've been drawn to warmer, earthier colors, natural materials, richer wood tones, and textured finishes. Sometimes, a light, warm white is exactly right. I think of the walls as a gallery backdrop, allowing the architecture, furniture, artwork, and natural light to take center stage. AI is also changing how buyers research homes. They can explore paint colors, furniture layouts, and remodeling ideas before ever walking through the door. That makes thoughtful preparation and a cohesive presentation even more important, as the initial design works set that canvas up for future improvements. I do not believe a home needs more design elements to make an impression; rather, it needs the right ones. My approach is simple: do not decorate over the house, but design around it. The goal is to make a home feel warm, inviting, and easy to live in while letting its best features speak for themselves.
5
THE DELEON INSIGHT
A Strong Fall Market Could Set the Stage for Spring 2027
By Audrey Sun, Director of Listings
If you’ve been following Silicon Valley real estate, you might expect the market to slow down as summer ends. But that hasn’t been the case this year. September and early October have been surprisingly busy, and we’ve seen well-prepared, well-priced homes attract strong buyer interest at DeLeon Realty. What’s especially interesting is that this is happening while mortgage rates are going up, not down. According to Freddie Mac, the average 30-year fixed mortgage rate reached 7.40% on October 8, 2026, compared with 6.30% a year earlier. Higher rates make it harder for buyers to afford the homes they want, yet many Silicon Valley buyers aren’t sitting on the sidelines. Some may be worried that rates will climb even higher in 2027, so they are choosing to move ahead rather than wait for better conditions. There’s another reason the local market has held up so well: there simply aren’t that many homes for sale. Silicon Valley continues to benefit from technologysector wealth and a strong pool of financially qualified buyers. With limited supply, desirable properties have an advantage. A September report from The Almanac found that new single-family home listings in Palo Alto declined 9% during the first eight months of 2026 compared with the same period in 2025. When buyers have fewer homes to choose from, the best properties can still draw serious interest, even when the broader economy feels uncertain. That’s why I’m optimistic about spring 2027. For homeowners thinking about selling, February or March could be a good time to make a move, especially if you start preparing now.
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No one knows where mortgage rates will go from here. If they continue to rise, affordability could become an even bigger concern. Listing early in the spring could help sellers reach buyers before more homes hit the market and give them additional choices. The technology sector is another reason to keep an eye on the market. The AI boom is creating significant wealth, and anticipated technology IPOs could bring even more buyers into Silicon Valley real estate. If those companies continue to grow and new IPOs move forward, we could see additional demand, particularly at the luxury end of the market. That’s one more reason I’m optimistic about the opportunities ahead in 2027. With so much happening in the tech sector, the market may look different by the time spring arrives. But sellers can put themselves in a strong position by preparing early, pricing thoughtfully, and making sure their home stands out when it hits the market. At DeLeon Realty, our in-house team works with sellers on everything from preparation and marketing to pricing and negotiation, helping them navigate the process and achieve the strongest possible result. If you’re thinking about selling in 2027, I’d encourage you to start the conversation sooner rather than later. Having a plan in place gives you time to prepare thoughtfully instead of scrambling when spring arrives. Contact the DeLeon Team for a confidential consultation and a selling strategy tailored to your property.
Sources: Freddie Mac Primary Mortgage Market Survey, October 2026; The Almanac, September 2026.
THE DELEON INSIGHT
The Growing Delta Between Good and Great By Alex Lewicki, Senior Buyer Specialist
“I’m so busy!” a client recently huffed while nearly speedrunning through a Los Altos open house. With two kids under three, a demanding job at Google, and a lease about to expire, he’s hardly unusual in Silicon Valley. Today’s buyers may be younger and wealthier than ever, but they’re also short on time. With many AI and AI-adjacent buyers working a 9-9-6 schedule (9 a.m. to 9 p.m., six days a week), remodeled homes offer a valuable advantage: the ability to save time and avoid the demands of renovation. The combination of having lots of money and little time is changing how they approach the housing market. The first trend I’ve noticed is that buyers have become less forgiving. A colleague recently described the market as “finicky,” but I think there’s a reason for it. Busy buyers are selective about which homes deserve their time. Poor presentation, awkward floorplans, weak marketing, or unrealistic pricing can leave sellers with disappointing results. Buyers want turnkey homes, not projects that require months of remodeling. Marketing matters, too. That same client recently passed on a property because it lacked quality photos, a digital floorplan, and a video tour. When he sat down to plan his weekend open house schedule after putting his kids to bed, he did not want to risk wasting time on a home that was not right. Without the information he needed, the property never made the cut. The second trend is the growing importance of land. Buyers increasingly recognize that if they can't
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find the right home, they can build it. Recently, a 10,000-square-foot teardown lot in Palo Alto attracted six offers and sold within a week, while a livable home across the street on a 7,500-square-foot lot continued to linger on the market. In Los Altos, a 19,000-squarefoot lot drew eight offers and sold nearly $3 million above its 2023 purchase price, even though no property improvements were made. Seven of those eight offers were all cash, which brings me to the third trend: the influx of new wealth into the market. Buyers with substantial liquidity can compete aggressively for the right property, even at prices that might seem difficult to justify. When that purchasing power meets a shortage of time and a limited supply of exceptional homes, the results can be surprising. Just as tech companies compete for top talent, buyers are competing for a small pool of the best properties. The gap between a good home and a great one has never felt wider. For sellers, extensive preparation and marketing can make a significant difference in how a property performs. For buyers, the right guidance can help uncover opportunities others overlook, or turn a good home into a great one without sacrificing precious time. Either way, having the right team matters. Contact DeLeon Realty to discuss how we can help you navigate today's market.
THE DELEON INSIGHT
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November 2026
2026: What Shaped the Market, What Surprised Us, and What Comes Next By Ken DeLeon, Founder
At the beginning of 2026, I expected artificial intelligence to create extraordinary new wealth, the luxury market to outperform, inventory to gradually increase, mortgage rates to decline, and regulatory changes to begin affecting real estate values. Some of those predictions proved remarkably accurate. Others took a few unexpected turns. But if there's one story that defined 2026, it's the growing divide within Silicon Valley real estate. At the upper end, technology-driven wealth and limited inventory pushed demand higher. Meanwhile, buyers relying on financing continued to face stubbornly high mortgage rates and affordability pressures. That divergence may be the year's most important lesson. AI Became a Real Estate Story My strongest conviction entering 2026 was that artificial intelligence would create another major Silicon Valley wealth cycle. Having started my legal career at Wilson Sonsini during the dot-com era, I've experienced several technology booms firsthand. Yet the speed and scale of AI made this cycle feel different, as I wrote in our Winter issue. The impact is increasingly visible in residential real estate. Redfin found that home prices in the Bay Area's luxury ZIP codes rose substantially faster following ChatGPT's launch than prices in lower-priced ZIP codes. Meanwhile, AI companies continued attracting enormous capital and expanding their Bay Area presence. Founders, executives, employees, and investors have accumulated substantial wealth through public-company appreciation, private-company equity, tender offers, and acquisitions. Some of that wealth is already moving into housing, and potentially much more remains on the sidelines. I believe we're only beginning to see the impact! Continued on the next page
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THE DELEON INSIGHT
Luxury Housing Pulled Away From the Broader Market In our May issue, I described 2026 as the strongest luxury selling environment since 2021. That assessment has certainly held up. Atherton, Palo Alto, Menlo Park, Los Altos, Los Altos Hills, and other prime Peninsula markets benefited from technology wealth, equity-rich buyers, and a shortage of exceptional homes. The more important story, however, is how differently luxury buyers responded to mortgage rates. Many rely less on conventional financing and more on stock holdings, private-company equity, business exits, and accumulated wealth. When those assets appreciate substantially, a 7% mortgage rate may have relatively little influence on a $10 million purchase. For someone buying a $2 million home with a substantial mortgage, the calculation is very different. The term "Silicon Valley housing market" became increasingly misleading in 2026. Several distinct markets were operating simultaneously. When Mortgage Rates Had Other Plans At the beginning of the year, I expected mortgage rates to gradually decline. Instead, rates moved back above 7%. But here's what's interesting: despite those higher borrowing costs, Silicon Valley's most desirable neighborhoods and luxury properties remained remarkably resilient. Rates above 7% continued to constrain affordability and purchasing power across much of the market. Yet AI-driven wealth creation helped offset the pressure of expensive financing, particularly among equity-rich buyers. In other words, rates still mattered. They simply were not the only force moving the market. The Inventory Wave Is Still Waiting We expect available inventory to increase as homeowners face adjustable-rate mortgage resets and other pressures.
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Many homeowners who purchased or refinanced between 2020 and 2022 secured exceptionally low rates. Meanwhile, today's adjustable-rate mortgage borrowers are generally in stronger financial positions than borrowers during the 2008 financial crisis, often with substantial home equity. A higher payment doesn't necessarily mean a forced sale. At the same time, homeowners with fixed mortgage rates below 4% still have a powerful financial incentive to stay put. The lock-in effect has weakened, but it hasn't disappeared. Buyers waiting for a flood of new Silicon Valley listings may be disappointed, while sellers of desirable homes continue to benefit from limited supply. With 2027 likely to favor sellers and many ARMs approaching expiration, we do project housing inventory to increase next year. Insurance and Housing Policy Gained Ground California homeowners insurance showed encouraging signs of improvement. Traditional insurers began expanding or resuming residential coverage in the state, offering an alternative to the FAIR Plan for some homeowners. The challenges are far from resolved. Premiums remain elevated, underwriting is more demanding, and wildfire exposure can complicate coverage. Still, greater participation from traditional insurers is a welcome development. Buyers should understand a property's insurance costs and risks before making an offer, not afterward. Housing policy also moved from theory toward practical consequences. California's transit-oriented housing law, SB 79, took effect, and Palo Alto received multiple preliminary development applications representing hundreds of proposed housing units near qualifying transit. The long-term effects will take time to emerge, but these rules could increase density, development potential, neighborhood character, and land values near Caltrain and other qualifying transit. Understanding zoning may become increasingly important to understanding a property's value.
November 2026
International Buyers Became More Selective International buyers, particularly from China and India, remained relevant to Silicon Valley real estate, though the broader picture was more nuanced than we anticipated. Foreign purchases of U.S. residential property remained strong, with Chinese buyers particularly focused on purchasing high-value properties. For sellers, the takeaway is straightforward: the ideal buyer could live nearby, elsewhere in the United States, or across the world. Our job is to make sure that buyer sees the home. What Comes Next Looking back, 2026 reinforced something I've believed throughout my career: Silicon Valley real estate cannot be understood through national headlines alone. Mortgage rates, inventory, insurance, taxes, and regulation all matter. But being the epicenter of innovation, and the wealth that innovation creates, continues to distinguish this market from almost anywhere else in the country.
can generate tremendous competition. Properties with dated interiors, less desirable locations, or unrealistic pricing can struggle even when the broader market is performing well. The same principle applies to buyers. Those who succeed are not necessarily the ones waiting for perfect conditions. They're the ones who understand value, prepare before the right property appears, and move decisively when opportunity presents itself. The key is understanding how these larger forces affect your particular neighborhood, price point, and property. That's where experience and local knowledge make a difference. My team and I are always happy to help you evaluate your options and determine the right strategy. In our next issue, I’ll take a closer look at what these trends could mean for Silicon Valley real estate in 2027, which could be the strongest year to sell a home in the region since the dot-com boom.
A strong market also doesn't guarantee a strong result for every property. Well-prepared homes, priced strategically and located in desirable neighborhoods,
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R E A L E S TAT E L A W
New Residential Real Estate Laws By Colette Thomason, General Counsel
Defensible Space: Zone Zero On August 19, 2026, California adopted its first statewide standard restricting combustible materials within five feet of homes in designated Fire Hazard Severity Zones. This area, known as Zone Zero, includes spaces where materials such as mulch, dead vegetation, and combustible ground cover could fuel a fire. However, the final version of the statewide regulations is still under review. Under the current proposal, the requirements would apply immediately to new construction, with existing homes phased in over three to five years. Some local jurisdictions already have their own rules. For example, the Woodside Fire Protection District requires certain homes being sold to undergo an inspection and meet its requirements, regardless of whether the property is in a designated Fire Hazard Severity Zone.
Existing law generally requires HOAs to allow owners to install EV charging stations in common areas for their exclusive use, subject to certain conditions. The new law clarifies that owners are responsible for costs associated with using their charging stations. It also requires installers to indemnify and reimburse the HOA for losses or damage caused by the installation. These provisions help clarify responsibilities and may make HOAs more comfortable approving installations.
SB 1050: Advertising With AI (Effective January 1, 2027)
AB 1738: Remote Building Inspections (Effective January 1, 2028)
SB 1050 requires clear and conspicuous disclosure when advertisements prominently feature a “synthetic performer.” The law applies to a broad range of advertising, including real estate listings, brokerage promotions, and agents’ social media accounts.
Beginning in 2028, AB 1738 requires local building departments to offer remote video or photographic inspections for certain permitted work on one- and two-family homes.
A synthetic performer is a digitally created figure, voice, or representation that uses generative AI to realistically depict a human performance, without representing an identifiable real person. Supporters of the bill argue that requiring disclosure helps prevent consumers from being misled by AI-generated content. SB 1267: EV Charging in HOAs (Effective January 1, 2027) SB 1267 aims to make electric vehicle (EV) charging installations easier for homeowners in commoninterest developments, including those governed by homeowners associations (HOAs).
Eligible projects include solar panels, home battery storage, heat pump HVAC systems, water heaters, roofing, and minor electrical or plumbing work. Remote inspections cannot cost more or cause greater delays than traditional in-person inspections. An inspector can still require an in-person visit if the video connection is inadequate or compliance cannot be verified remotely. The goal is to make the inspection process more efficient, particularly for projects involving energy-efficient home improvements, where homeowners and contractors may otherwise spend hours waiting for an inspection that takes only 15 minutes.
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LOCAL EVENTS
LOCAL EVENTS CALENDAR November- December 2026
ATH ERT O N EVENT
DATE
TIME
LOCATION
COST
Sacred Heart Schools Holiday Boutique
December 2-3
Dec 2: 9:30am – 6pm Dec 3: 8:30am – 5pm
Rogers Practice Pavilion
Free
LOS ALT O S EVENT
DATE
TIME
LOCATION
COST
23rd Annual Holiday Stroll
November 13
5 – 9pm
Main and State Streets
Free
Festival of Lights Parade -Say Hi as we stroll by with our float!
November 29
6 – 8pm
Downtown Los Altos -First and State Streets
Free
Holiday Tree Celebration -Stop by our booth and say Hi!
December 4
6 - 8pm
Veterans Community Plaza
Free
Holiday Market
December 10 & 17
4 – 8pm
Downtown Los Altos -State Street
Free
Family Fun Days – Winter Wonderland
December 12
10am – 1pm
Los Altos Community Center
Free
LOS ALT O S H I LLS EVENT
DATE
TIME
LOCATION
COST
Barn Lighting
December 6
2 – 5pm
Westwind Community Barn
Free
LOCAL EVENTS
ME NLO PA R K EVENT
DATE
TIME
LOCATION
COST
Light Up the Season Event
December 4
5:30 – 7pm
Fremont Park
Free
Menlo Park Photos with Santa
December 12
8:30am – 12:30pm
Arrillaga Family Recreation Center
$5
Cosmic Charlie Brown Christmas
December 13
5pm & 8pm
The Guild Theater
$34+
A Hometown Holiday -Molly Tuttle with Family & Friends
December 22
8 – 11pm
The Guild Theater
TBD
MOUNTAIN V I E W EVENT
DATE
TIME
LOCATION
COST
Dia de los Muertos Celebration
November 7
All Day
Civic Center Plaza
Free
Holiday Bazaar
November 21
10am – 3pm
Mountain View Senior Center -266 Escuela Avenue
Free
Community Tree Lighting
December 7
5:30 - 8pm
Civic Center Plaza
Free
December 12
11am – 9pm
City Hall Plaza
Free
EVENT
DATE
TIME
LOCATION
COST
Festival of Lights -A Diwali Celebration
November 22
2 – 4pm
Mitchell Park Community Center
Free
Winter Festival Marketplace
December 4-5
10 am – 4pm
Gamble Garden
$10
Holiday Tree Lighting
December 4
5:30 – 7pm
Lytton Plaza
Free
Christmas Tree Lane
Opening ~December 12
5 – 10pm
Fulton Street - 1700 and 1800 Blocks
Free
Celebration German Holiday Market
PA LO ALT O
LOCAL EVENTS
R ED WOO D C I T Y EVENT
DATE
TIME
LOCATION
COST
Dia de los Muertos
November 8
3:30 – 8pm
Courthouse Square
Free
10th Annual Holiday Show
November 21
10am – 4pm
Courthouse Square
Free
Hometown Holidays
December 12
10am – 6pm
Downtown Redwood City
Free
S AN CAR L O S EVENT
DATE
TIME
LOCATION
COST
Diwali Downtown
November 14
11am – 2pm
Laurel Street
Free
Night of Holiday Lights
December 4
5 – 8:30pm
Laurel Street (San Carlos Avenue to Cherry Street)
Free
Christmas Tree Lane
Opening ~December 4
5 – 10pm
Eucalyptus Avenue -1900 & 2000 Blocks
Free
EVENT
DATE
TIME
LOCATION
COST
Tree Lighting Celebration
~December 5
5 – 8:30pm
Downtown Sunnyvale – Murphy Avenue
Free
Oasis Holiday Makers’ Fair
December 9
4 - 7pm
TETRA Hotel. Autograph Collection
Free w/ RSVP
EVENT
DATE
TIME
LOCATION
COST
Holiday Lights at Filoli
November 14 – January 10
4 – 10pm
Filoli
$45+
S UNNY VA L E
WOOD SI D E