Published October 18, 2026 in Market Update

Mid-Peninsula sales held steady even with rates above 7%

By Brad Bell

Real estate, Mid-Peninsula - $1M+

Realtor.com reported mortgage rates topped 7% for the first time since January 2025. Then Redfin put the weekly average at 7.4% as of October 8. That is the kind of number that usually slows things down. Here, it did not. The Real Estate Data Aggregator counted 742 homes sold across the Mid-Peninsula in the three months ending August 31, 2026. That is up 1.6% from the same months of 2025. Pending sales rose 1.7% over the same stretch. Demand did not disappear. What it did do is sort itself by location.

Supply barely moved. The Real Estate Data Aggregator shows homes for sale across the market up just 0.9% and new listings up 1.4%. That thin inventory is one reason prices in several ZIPs held or rose even with rates at a 3-year high. But not every ZIP moved the same way. Some saw prices rise sharply. Others dipped. The difference comes down to which part of the Mid-Peninsula you are in.

Where prices rose

ZIP 94070, San Carlos, was the clearest mover. The Real Estate Data Aggregator put the median sale price there at $2,480,000 for the three months ending August 31, 2026. That is up 11.5% from the same period a year earlier. Homes sold in 97 transactions, up 12.8%. The median sat at just 13 days on market, 4 days shorter than a year ago. More than half of homes, 54.6%, sold above list price.

ZIP 94040, Mountain View's higher-end pocket, showed the largest price jump in the data. The Real Estate Data Aggregator recorded a median of $2,850,000, up 49.7% year over year. That number warrants a note: only 44 homes sold there, down 35.3% from a year ago. A smaller pool of sales can move a median sharply. Still, homes averaged 104.5% of list price and 56.8% sold above list. The market there was competitive.

ZIP 94041, also Mountain View, recorded a median of $2,300,000, up 9.1%. Only 17 homes sold, so treat that figure carefully. What stands out: the Real Estate Data Aggregator shows 64.7% of homes went under contract within two weeks of listing, up 14.7 points from a year ago. Homes that did sell moved fast and at 108.2% of list price.

ZIP 94061, Redwood City's east side, recorded a median of $2,021,500, up 7.4%. The Real Estate Data Aggregator counted 90 homes sold, up 2.3%. Homes went under contract in a median of 13 days, 7 days faster than a year ago. The share selling above list jumped 14.5 points to 61.1%.

ZIP 94402, San Mateo's hillside ZIP, came in at a median of $2,550,000, up 6.5%. The Real Estate Data Aggregator counted 84 homes sold, up 9.1%, with a median of just 12 days on market. Nearly two thirds of homes, 63.1%, sold above list price, up 9.8 points from a year ago.

ZIP 94065, Redwood Shores, posted a median of $1,387,500, up 6.9%. Sales volume jumped 61.5% to 42 homes. Days on market fell 6 days to a median of 24. The sale-to-list ratio was 102.3%, modest compared with other ZIPs here, but moving in the right direction.

Where prices slipped

Not every ZIP followed that pattern. ZIP 94404, Foster City, recorded a median of $1,333,000, down 11.1% from a year ago. The Real Estate Data Aggregator counted 78 homes sold, up 6.8%, but days on market stretched to 28, five days longer than last year. The sale-to-list ratio was 100.6%, essentially flat. Homes sold, but buyers had more room to negotiate.

ZIP 94403, San Mateo's flatlands and mid-city area, saw a median of $1,760,000, down 5.5%. Sales fell 11.1% to 80 homes. New listings dropped 31%, yet days on market still crept up 2 days to 14. The sale-to-list ratio of 108.2% and the 68.8% above-list share tell you competition stayed real. The price dip likely reflects the mix of homes that traded, not a softening in demand.

ZIP 94401, downtown San Mateo and its flats, came in at a median of $1,150,000, down 3.6%. That is the lowest median in this market. Days on market fell 11 days to 29, and the share going under contract within two weeks rose 8.4 points to 39.7%. Homes for sale fell 26.1%. So prices dipped a little while competition tightened. That is a mix worth watching.

ZIP 94043, Mountain View's lower-priced corridor near the tech campuses, posted a median of $1,530,000, down 5.8%. Sales fell 20.8% to 57 homes. Inventory rose 54.5% and months of supply climbed 0.9 months to 1.8. The share selling above list dropped 8.5 points to 52.6%. More supply and softer competition pushed prices lower.

ZIP 94002, Belmont, recorded a median of $2,200,000, down 2.2%. Sales rose 15.7% to 59 homes. But inventory more than doubled, up 118.8%, and months of supply rose to 1.8. The share going under contract within two weeks fell 9 points to 44.1%. More choices for buyers meant less urgency.

ZIP 94063, Redwood City's north and central areas, posted a median of $1,500,000, down 2.6%. Sales nearly doubled, up 88.9% to 34 homes. Days on market rose 7 days to 20. But 64.7% of homes sold above list, up 9.1 points. The price dip and the above-list share moving opposite directions suggest the mix of homes that sold shifted, not that buyers pulled back.

How this ZIP compares, sale price to list price

Median sale price by ZIP

What rates above 7% mean here

Nationally, Realtor.com reported that 20.8% of listings took a price cut in September, the highest share since October 2022. Redfin put the typical homebuyer's monthly payment at $2,777, near a record high. The Federal Housing Finance Agency reported U.S. home prices rose just 2.6% year over year through July.

The Mid-Peninsula did not follow that national softness. Buyers here are largely employed in tech, with short commutes to Apple, Google, Nvidia and similar campuses along 101 and 280. That demand is more rate-resistant than most markets. But it is not rate-proof. The ZIPs with rising inventory and longer days on market, 94002, 94043 and 94404, show that even here, buyers have started to push back where supply gives them room.

Speed: how fast homes moved