PRICES

Prices reached record highs in 2025 exceeding $6.2 million for the first time and remaining above $6 million for 3 out of the last 4 years. The high end of the market was very strong with 9 sales for more than $10 million. Six of these homes sold in the second half of the year, however the two most expensive sales were in the first half, which resulted in the average price being $6,310,395.

The majority of the sales, 49%, were between $4 million and $7 million. 15% were between $7 million and $10 million.

There were 53 homes, or 41%, that sold for more than list price; this compares to 39% in 2024 and 35% in 2023. As the year went on, fewer homes sold over list price: 55% in the first half and 44% in the second half

LENGTH OF TIME TO SELL

Homes sold very quickly in 2025. Half of all homes sold in 11 days or less; 20% sold in 7 days or less, which is a clear indication of demand. However, there were still 5 homes that were on the market for 100 days or more, each of which had a significant price reduction prior to selling.

There was a direct correlation between days on market and price. For the 21 homes that were not accurately priced when listed and therefore required a price reduction, the average days on market was 73. All other homes had average days on market of just 13. Setting the correct price based on local market knowledge and market conditions is essential to obtaining maximum value and a timely sale.

OUTLOOK

In our report to you last year, we anticipated a more balanced market. It turns out it was indeed a seller’s market with record-high average prices. Demand for Los Altos Hills homes was exceptional and we expect that demand to continue into 2026. Property values are projected to show continued growth, and the number of home sales is anticipated to increase at a moderate pace.

Mortgage rates are forecasted to remain around the low-6% range through 2026, with many analysts expecting them to hover near 6.0%–6.5% on a 30-year fixed mortgage and only modest declines through the end of the year. Periodic dips below 6 percent could provide a modest boost to buyer confidence and transaction activity.

That said, in Silicon Valley, interest rates typically play a smaller role than in many other markets. Buyers often rely on significant financial flexibility – including cash holdings, equity from prior sales, or stock-based compensation – reducing dependence on conventional mortgage financing. As a result, local market behavior continues to be driven primarily by inventory, competition, schools, and the appeal of individual properties rather than rate volatility.

For buyers, decisiveness will remain critical when well-located, well-priced homes come to market. Sellers continue to benefit from solid demand, but results will depend on careful pricing, presentation, and timing – areas where Troyer & Cabot Group provides a clear advantage.

As always, real estate is a deeply local business, with conditions varying significantly from one area of town to the next. By staying attuned to these local nuances and understanding the latest trends – guided by Troyer & Cabot Group, buyers and sellers can navigate the 2026 market with confidence. We remain optimistic on the long-term value of owning a home in Los Altos Hills, which continues to be one of the best places to live in the Bay Area. If you would like more information on any of the information in this report, or if you would like to discuss your specific real estate needs, please give us a call.

The Troyer & Cabot Group represented buyers and sellers of 14 Los Altos Hills homes in 2025. It’s results like this that place The Troyer & Cabot Group as the #2 Large Team in Northern California and #14 in the United States, per RealTrends, 2025.