Palo Alto Housing Market Report – March 2026
Here's a look at how the Palo Alto, CA real estate market performed in March 2026, based on actual sold data from the MLS.
Market Snapshot
- Homes Sold: 51
- Median Sale Price: $3,455,750
- Average Sale Price: $4,243,384
- Average Price Per Sq Ft: $1,936
- Average Days on Market: 43
- Sale-to-List Price Ratio: 106.9%
Month-Over-Month Trends
Compared to February, the median sale price in Palo Alto moved 4.7% down (from $3,628,000 to $3,455,750). The number of homes sold was 50.0% up compared to the prior month (34 vs. 51). Average days on market shifted 7.5% up (40 days to 43 days).
Year-Over-Year Comparison
Compared to March 2025, the median sale price is 8.5% down (from $3,777,500 to $3,455,750). Sales volume is 17.7% down year-over-year.
What This Means
Palo Alto's housing market is showing some interesting contradictions this March. Sales volume jumped 50 percent month-over-month, which sounds great on the surface, but that's partly just spring seasonality kicking in—we're seeing the typical uptick as weather improves and families prepare for school year moves. More telling is the year-over-year decline of 17.7 percent in sales volume, suggesting that underlying demand remains softer than it was a year ago. The median price dip of 8.5 percent annually tells a similar story: the market is cooling from its peak.
What's particularly revealing is that homes are selling above asking price (106.9 percent sale-to-list ratio), yet prices are still trending down. This suggests sellers are being more realistic with their initial asking prices rather than seeing across-the-board appreciation. At 43 days on market, homes aren't moving dramatically fast, especially compared to the frenzy of recent years. The gap between median and average prices also indicates that ultra-luxury properties are skewing the average upward, while typical homes are moderating.
For buyers, this represents a shift toward a more balanced market. For sellers, the message is clear: pricing right from day one matters more than it has in years.
Palo Alto Sales by Zip Code
| Zip Code | Homes Sold | Median Price | Avg $/SqFt | Avg DOM |
|---|---|---|---|---|
| 94306 | 20 | $3,150,000 | $1,871 | 30 |
| 94301 | 14 | $4,722,750 | $1,985 | 47 |
| 94303 | 12 | $3,260,500 | $1,951 | 36 |
| 94304 | 5 | $4,220,000 | $2,027 | 348 |
Sales by Property Type
| Property Type | Homes Sold | Median Price | Avg $/SqFt |
|---|---|---|---|
| SINGLE_FAMILY | 34 | $3,604,400 | $2,156 |
| CONDOS | 6 | $2,357,818 | $1,370 |
| TOWNHOMES | 4 | $1,880,000 | $1,311 |
| MULTI_FAMILY | 3 | $3,802,888 | $1,919 |
| CONDO | 2 | $1,574,000 | $1,178 |
| OTHER | 1 | $2,068,000 | N/A |
| LAND | 1 | $4,995,500 | N/A |
Sales by Price Range
| Price Range | Homes Sold |
|---|---|
| $750K+ | 51 |
Current Active Listings
As of this report, there are 82 active listings in Palo Alto with a median asking price of $2,737,500 and an average of 39 days on market.
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