Published October 4, 2026 in Market Update

Part of Palo Alto stayed tight even as U.S. supply reached 4.9 months

By Julie Tsai Law

Real estate, Palo Alto, Los Altos, Los Altos Hills, Menlo Park, Atherton, Mountain View, Portola Valley, Woodside

The National Association of Realtors reported 4.9 months of supply across the U.S. in August 2026. That number matters because it tells you how long it would take to sell every home currently listed. Six months is considered balanced. Below that, sellers hold more cards.

Now look at ZIP 94301, the northwest corner of Palo Alto. The Real Estate Data Aggregator counted just 0.9 months of supply for the three months ending July 31, 2026. That is less than one fifth of the national figure. Inventory there fell 37.9% from the same three months in 2025.

For homeowners in 94301, that tight supply helps explain why pricing still has support. The Real Estate Data Aggregator put the median sale price at $4,550,000 for the three months ending July 31, 2026, up 4.6% from the same period in 2025.

For buyers, fewer choices and less room to wait is the reality. The Real Estate Data Aggregator recorded only 18 homes for sale in 94301 during that period. Homes sold at an average of 104.7% of list price, up 2.5 points from a year before.

One honest admission: homes are taking a little longer to sell. The Real Estate Data Aggregator showed a median of 18 days on market in 94301, which is 5 days longer than the same period in 2025. That is still fast. But it is not instant.

Nearly half of all homes sold above list price. The Real Estate Data Aggregator counted 46.8% of 94301 sales above list for the three months ending July 31, 2026, up 3.7 points from 2025. And 62 homes sold in total, up 6.9% from a year before.

How the rest of the market compares

ZIP 94301 is the tightest pocket, but it is not alone. The Real Estate Data Aggregator showed supply below 1.5 months in several other ZIPs for the same period.

ZIP 94024 and ZIP 94027 each came in at 0.8 months, per the Real Estate Data Aggregator. That is even tighter than 94301. In 94027, homes for sale fell 47.1% from 2025, and the median sale price reached $11,200,000.

Not every part of this market is that tight. ZIP 95014 (Cupertino) showed 2.3 months of supply, up 1.3 months from 2025, with homes for sale up 96.7%, per the Real Estate Data Aggregator. ZIP 94041 (Mountain View) reached 3.1 months, up 2.2 months from a year before. Those are still well below 4.9 months nationally, but the direction is different.

The Federal Housing Finance Agency reported U.S. house prices rose 2.6% from July 2025 to July 2026. In ZIP 94022, the Real Estate Data Aggregator put the median sale price at $4,960,000, up 2.5% from the same period in 2025. In ZIP 94024, the median rose 12.5% to $4,800,000.

CNBC reported the average 30-year fixed mortgage rate at 7.30% on September 30, 2026, with a Mortgage News Daily survey showing a surge to 7.58% on that same Tuesday. That is a real cost for buyers. It also helps explain why some ZIPs are seeing homes sit a few days longer.

Portola Valley (94028): a different story

ZIP 94028 stands out. The Real Estate Data Aggregator showed a median of 40 days on market for the three months ending July 31, 2026. That is 25 days longer than the same period in 2025. Only 28% of homes sold above list, down 30.8 points from a year before. The average sale-to-list ratio was 99.3%, meaning homes sold just below asking on average.

Supply in 94028 fell to 1.7 months, down 2.1 months from 2025. So inventory tightened, but the pace of sales slowed. That combination tells you buyers there are taking more time to decide.

94304: a note on data

The Real Estate Data Aggregator has no counts for ZIP 94304. The story for that part of the market comes from the national websites above alone.

One ZIP code is a starting point, not the whole answer. One street can read very differently from the numbers above. If your home is in any of these ZIPs, I am happy to show you exactly where it sits.