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 Monterey Bay Wayback Machine
Capitola Secures Grant to Restore the Esplanade (February 20, 1968)
Capitola officials formally accepted a grant to fund beautification efforts along the Esplanade, with a primary focus on repairing the aging seawall. The project aimed to protect the beachfront promenade from storm damage while enhancing its appeal for residents and visitors. Strengthening the seawall was critical to preserving nearby businesses and public access along the shoreline. The grant reflected Capitola’s commitment to balancing coastal protection with tourism-driven economic vitality during a period of steady community growth.
Pajaro Valley Growers Confront “Red Stele” Threat (February 16, 1953)
Watsonville-area agriculture officials reported a record turnout at a regional meeting addressing the spread of “Red Stele,” a destructive root disease threatening strawberry crops in the Pajaro Valley. Growers, researchers, and industry leaders gathered to discuss containment strategies and potential soil treatments. With strawberries a cornerstone of the local economy, the disease raised serious concerns about yields and long-term viability. The strong attendance reflected both the urgency of the threat and the valley’s deep reliance on agricultural innovation and cooperation.
UCSC Students Rally to Protect Nearby Redwoods (February 18, 1966)
Students at the newly opened University of California, Santa Cruz held a small campus demonstration advocating for preservation of the nearby redwood groves. As the young campus expanded, students voiced concern that development and increased activity could threaten the surrounding forest that shaped UCSC’s identity. The demonstration reflected early environmental awareness on the Central Coast and highlighted how the university’s setting inspired activism. Though modest in size, the event signaled a growing student role in local conservation discussions.
This Week in Santa Cruz County
Reluctant Yes: Live Oak Housing Project Approved
The Santa Cruz County Board of Supervisors voted 4-1 to approve a controversial five-story, 57-unit apartment development at 841 Capitola Road in Live Oak, despite strong community opposition. Residents raised concerns about traffic, neighborhood character, and the overall scale of the project. The decision followed more than two hours of discussion and reflected deep frustration among many locals who argued the county should prioritize smaller, community-supported development.
The project had previously been approved by the county Planning Commission in October 2025, but neighbors appealed the decision, pushing the issue to the supervisors for a final vote. Several supervisors expressed hesitation and discomfort, saying they felt pressured by California state housing laws that limit local control, especially when jurisdictions risk losing housing compliance status.
Both the developer, Workbench, and project opponents suggested legal action could follow depending on the outcome, highlighting growing tensions between state housing mandates and local community opposition.
Moving in Harmony with Life, Self-care Exercises for Vitality and Balance
Date: Wednesday, February 18
Time: 12:00 pm – 12:45 pm
Location: Hummingbird Valley, 1690 Glen Canyon Rd., Santa Cruz
Self-Breema offers simple, dynamic exercises that help you reconnect body and mind and bring more presence into everyday movement. In this nurturing class, you’ll feel revitalized, grounded, and more positive, tools you can carry into the rest of your day. Attend online or drop in in person at Hummingbird Valley for free, with no registration required.
Dreamgirls
Date: Friday, February 20; Saturday, February 21; Sunday, February 22
Time: Friday & Saturday, 7:30 pm – 9:30 pm; Sunday, 2:00 pm – 4:00 pm
Location: UCSC Theater Arts Mainstage, 1156 High St., Santa Cruz
Step into the spotlight with Dreamgirls, an electrifying Motown-inspired musical that follows three young women on their rise from big dreams to superstar fame. Packed with powerhouse vocals, dazzling choreography, and iconic hits like “And I Am Telling You I’m Not Going,” this production pulses with ambition, heart, and show-stopping energy.
Thee Sinseers & The Altons
Date: Saturday, February 21
Time: 7:00 pm
Location: The Catalyst, 1011 Pacific Ave., Santa Cruz
Chicano soul was born in mid-’60s East L.A., led by legends like Thee Midniters and Cannibal & the Headhunters. Today, Thee Sinseers carry that sound forward, blending vintage soul vibes with a fresh modern energy on their 2024 debut album Sinseerly Yours.
Clam Chowder Cook-Off
Date: Saturday, February 21 – Sunday, February 22
Time: 10:00 am – 4:00 pm
Location: Santa Cruz Boardwalk, 400 Beach St., Santa Cruz
Taste your way through the country’s largest clam chowder cook-off at the Santa Cruz Beach Boardwalk, featuring amateur and professional chefs. Pick up a tasting kit to sample six chowders and vote for your favorite Boston or Manhattan style, with proceeds benefiting City of Santa Cruz Parks and Recreation.
Time to talk to a REALTOR?
Senior Friendly Homes in Silicon Valley South
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