Published October 18, 2026 in Market Update

More condos are coming on, but this market is still moving

By Brad Bell

Real estate, Sunnyvale & Santa Clara Condo - $700K+

The one thing sellers need to know right now: there is more competition. The Real Estate Data Aggregator counted 240 condos for sale across Sunnyvale and Santa Clara in the three months ending August 31, 2026. That is up 66.7% from the same period a year before. More supply means buyers have options, and a home that is priced a little off will sit longer than it would have last year.

That said, this is not a stalled market. The Real Estate Data Aggregator counted 434 pending sales across the same ZIP codes in those three months. That is up 7.2% from a year before. More homes came on, and more went under contract. Both things are true at once.

Realtor.com reported that 17.4% of listings in the San Jose-Sunnyvale-Santa Clara area had price cuts in September 2026. That is worth noting. It does not mean prices are falling across the board. It means some sellers priced ahead of the market and had to adjust. Pricing carefully from the start matters more now than it did a year ago.

What the ZIP codes show

The story is not the same in every pocket. ZIP 94087, which covers much of central Sunnyvale near Monta Vista High School's attendance boundary, is moving faster than the rest. The Real Estate Data Aggregator counted a median of 9 days on market there in the three months ending August 31, 2026. That is 1 day shorter than a year before, even as inventory rose 61.9%.

In ZIP 94087, the Real Estate Data Aggregator also counted 63.3% of homes selling above list price. The average sale came in at 106.4% of list. That is the strongest reading of any ZIP code here. Buyers are still competing there, even with more choices.

ZIP 95054, near the north Santa Clara tech campuses with quick access to Highway 101 and Central Expressway, told a different story on price. The Real Estate Data Aggregator put the median sale price there at $1,550,000, up 18% from a year before. The share of homes selling above list jumped 18 points, to 56.7%. That is a notable move in one year.

ZIP 94089, in north Sunnyvale near the Lockheed corridor and close to Highway 237, saw the biggest jump in homes sold: up 52.4% from a year before. Pending sales there rose 58.8%. But the median sale price fell 10.3%, to $1,415,000. More activity, lower prices. That combination usually means a mix of product, not a single trend.

What the wider market adds

Rates are not helping buyers right now. CNBC reported that Fannie Mae is forecasting a 30-year fixed mortgage rate of 7.4% in the fourth quarter of 2026, and 7.5% through 2027. Realtor.com reported that rates topped 7% for the first time since January 2025. That keeps monthly costs high and pushes some buyers to the sidelines.

CNBC also reported that pending home sales nationally were down 8.5% year-over-year in September, according to Zillow. Locally, the picture is different: the Real Estate Data Aggregator counted pending sales up 7.2% across these ZIP codes in the same period. This market is not moving in step with the national number.

The Federal Housing Finance Agency reported that U.S. house prices rose 2.6% from July 2025 to July 2026, and 0.3% from June to July on a seasonally adjusted basis. That is a slow, steady national pace. Silicon Valley condos above $700K are their own story, and the ZIP code numbers above tell it more directly than any national figure.

What this means if you own here

More inventory is real competition. The Real Estate Data Aggregator counted 491 new listings across these ZIP codes in the three months ending August 31, 2026. That is up 23.1% from a year before. Buyers have more to compare yours against. Pricing and condition matter more than they did when supply was thin.

The good news is that absorption is holding. Homes are still selling. The sale-to-list ratios are above 100% in every ZIP code here. That means the market is not broken. It is just more balanced than it was, and it rewards sellers who price to where the market actually is.