Spring is typically when the Bay Area real estate market wakes up fast…it usually gets going by mid-January, and by Super Bowl Sunday, it’s game on. But this year seems to have started off on the wrong foot.
January’s data showed a softer start than we’re used to seeing. The median price for single-family homes in Santa Clara County came in at $1,740,000, down about 3.3% year-over-year, with price per square foot also slipping 2%. In a region where appreciation is usually the default setting, even small declines get attention.
Sales activity tells a similar story. Closed sales were down 16% compared to last January and 36% from December.
Meanwhile, inventory is rising faster than sales, with months of inventory up roughly 25% year-over-year at the end of January. At around 1.9 months, it’s still technically a seller’s market — but it’s clearly less intense than what we’ve seen in recent spring cycles. Homes are still moving, but days on market are also up about 25% vs last year.
None of this is especially good news, particularly given that it is coming at the start of the spring selling season.
Now, I should note that December was a pretty strong month, and it could be that some business was pulled forward which goes to explain perhaps why the number of sales were off so much.
But this isn’t a local phenomenon – January was a bad month from coast to coast, with the perennially optimistic Lawrence Yum, Chief Economist for the National Association of REALTORS, saying the January data make it seem as though we have entered “a housing crisis of sort.”
This year, more than ever, I tell folks who are considering a spring sale to get their home on the market sooner, rather than later. Mid-March is fast approaching, and this is the single best time to list a home for Sale – much past that and you generally miss the peak of the market – and I expect that to be no less true in 2026.
Sell As-Is. Sell Easy. Sell Smart!
From the Bay Area Wayback Machine
Oakland Prepares Airport for the Jet Age (February 21, 1958)
The Port of Oakland announced plans to significantly expand Oakland International Airport in anticipation of the emerging “Jet Age” of commercial aviation. With faster, larger jet aircraft poised to transform air travel, officials recognized the need for longer runways, upgraded terminals, and modernized facilities. The expansion aimed to position Oakland as a competitive West Coast gateway. The announcement reflected growing confidence in air travel’s future and underscored the Bay Area’s commitment to infrastructure suited for a rapidly changing transportation era.
Sunnyvale’s “Southwest Water Tank” Powers Industrial Transition (February 15, 1955)
Sunnyvale completed its “Southwest Water Tank,” a municipal storage project built to supply high-pressure water to expanding electronics manufacturers like Westinghouse. Strategically positioned near emerging industrial corridors, the tank supported facilities that would soon include Lockheed Missiles and Space Company. This infrastructure milestone marked a decisive shift from agriculture to defense-tech growth. Today, Sunnyvale’s expanded system, including multiple ground storage tanks and the Mary-Carson Water Plant, continues to provide essential capacity for residents and industry alike.
San Jose Annexation Fuels the Morepark Eichler Boom (February 18, 1953)
The San Jose City Council voted to annex a 40-acre tract that helped enable development of the Morepark subdivision, built by Eichler Homes as one of the city’s major mid-century residential tracts. The move aligned with City Manager A.P. “Dutch” Hamann’s aggressive postwar expansion strategy, using annexations to extend services and guide suburban growth. Morepark’s Modernist, Frank Lloyd Wright, inspired designs offered affordable housing for a booming population, reflecting San Jose’s shift from orchards to a modern metropolitan landscape.
This Week in Silicon Valley
Fast-Track Homes: San Jose Lawmaker’s Housing Bills Advance
A pair of housing reform bills led by San Jose Rep. Sam Liccardo have advanced through the U.S. House of Representatives as part of a bipartisan package aimed at easing the nation’s housing shortage. The measures, approved by a 390-9 vote, now head to the Senate for consideration.
The BUILD Housing Act and the Unlocking Housing Supply Through Streamlined and Modernized Reviews Act seek to cut red tape by allowing the Department of Housing and Urban Development to share environmental review authority with state and local governments and, in some cases, exempt smaller residential projects from federal environmental reviews under the National Environmental Policy Act.
Liccardo emphasized housing as a rare area of bipartisan cooperation amid political divisions. With many Americans struggling under high housing costs, the broader legislative package also updates HUD programs and modernizes banking rules to expand lending opportunities and accelerate housing development nationwide.
EPiC: Elvis Presley in Concert in IMAX at The Tech Interactive
Date: Wednesday, February 18 & Friday, February 20
Time: Wednesday, 5:30 – 7:10 pm; Friday, 4:00 – 5:40 pm and 7:00 – 8:40 pm.
Location: The Tech Interactive, 201 S. Market St., San Jose
EPiC: Elvis Presley in Concert is a bigger-than-life IMAX experience from Baz Luhrmann that surrounds you with Elvis’s voice, energy, and story. Built from newly unearthed concert footage and rare archives, it brings the King back with full-throttle cinematic power.
Hammer Presents National Theatre Live: The Importance of Being Earnest
Date: Wednesday, February 18
Time: 7:00 pm – 8:00 pm
Location: Hammer Theatre Center, 101 Paseo de San Antonio, San Jose
National Theatre Live: The Importance of Being Earnest is a joyful, laugh-out-loud reimagining of Oscar Wilde’s classic comedy, featuring Sharon D Clarke and Ncuti Gatwa. When two friends juggle double identities to win over the women they love, their harmless fibs spiral into a delicious mess of mistaken selves, romance, and razor-sharp wit.
Poulenc Trio
Date: Sunday, February 22
Time: 2:30 pm – 4:30 pm
Location: Los Gatos High School Theatre, 20 High School Court, Los Gatos
The Poulenc Trio is a pioneering oboe, bassoon, and piano ensemble celebrated worldwide for more than 20 years. With performances across 47 U.S. states and major festivals in Mexico and Russia, they’ve become one of the most in-demand piano-wind groups in the country.
Lunar New Year Celebration
Date: Sunday, February 22
Time: 1:00 pm – 4:00 pm
Location: Sunnyvale Library, 665 W. Olive Ave., Sunnyvale
Celebrate the Year of the Horse with a fun-filled day of crafts for all ages and exciting live performances from Red Panda Acrobats and LionDanceME. This free community celebration invites everyone to enjoy festive activities throughout the library, with limited supplies available.
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