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Depending on the neighborhood, Palo Alto’s housing market varied during the first half of this year with some areas seeing prices and sales surge and others experiencing declines.
Overall, the city saw new sales listings jump 14% in 2025 compared to the same time last year. The number of homes that went on the market increased in all but four neighborhoods, with one neighborhood seeing its inventory surge by a whopping 233%.
Overall, sales prices also saw an increase. Even after experiencing a 7% quarter-over-quarter dip this year, the city’s median sales price remains about 6% higher compared to the first half of 2024. In particular, the city’s luxury segment has remained notably strong, with the sale of homes priced $8-million and over jumping by 36%.
Despite rising prices and inventory, sales activity dropped. While seven, or a little more than half, of the city’s 13 neighborhoods closed more deals in 2025 than during the same time period in 2024, overall activity declined about 7%.
So which neighborhoods saw more activity? fewer sales? higher price tags?
Here’s a look at sales activity for single-family homes in each of Palo Alto’s 13 neighborhoods from January through June 2025 compared to the first half of 2024 based on data from MLSListings.
(Editor’s note: Sales activity based on neighborhoods and boundaries as defined by MLSListings.)
Palo Alto real estate activity at a glance:
• Palo Alto’s overall median sales price increased nearly 6% in 2025 compared to the first half of 2024. The median home price from January to July 2025 was $3.8 million compared to $3.63 million during the same time period in 2024.
• Overall home sales dipped 7% in 2025 compared to the first half of 2024. From January to July of this year, 203 homes sold in Palo Alto compared to 218 in the first half of 2024.
• Active listings increased about 11% in 2025. There were 315 homes listed for sale in Palo Alto in the first half of 2025 compared to 270 home listings in 2024.
• Median sales prices rose in seven Palo Alto neighborhoods and declined in six.
• Crescent Park came in as the most expensive neighborhood in Palo Alto with a median sales price of $5.93 million, followed by Old Palo Alto at $5.6 million.
• The sale of $8-million-plus homes jumped to 13 in 2025 compared to nine in the first half of 2024, with Old Palo Alto accounting for six of these luxury transactions.
• Palo Alto Hills saw the sharpest decrease in its median sales price with a 16.46% year-over-year decline. The median price dropped from $5.3 million in the first half of 2024 to $4.49 million in 2025
• All but four neighborhoods — Crescent Park, Green Acres, Professorville and South Palo Alto – saw the number of single-family homes listed for sale increase.
• Community Center saw the biggest jump in homes on the market with a 233% increase year-over-year. New listings rose from six in 2024 to 20 in 2025.
• Professorville saw the sharpest decline in homes on the market with a 38.9% drop year-over-year. Sale listings fell from 18 in 2024 to 11 in 2025.
• Palo Alto Hills, Midtown, Ventura, College Terrace, Old Palo Alto, Green Gables and Community Center closed more deals in 2025, while Barron Park, Crescent Park, Downtown, Green Acres, South Palo Alto and Professorville saw less sales activity.
• South Palo Alto closed fewer deals in 2025 than compared to the first half of 2024 but still saw the most activity with 44 sales, or about 21% of all home sales citywide.
• Community Center saw the biggest jump in sales activity with a 260% increase year-over-year. Sales rose from five in the first half of 2024 to 18 in 2025.
• Green Acres saw the least activity with one sale.
• The total number of pending and recorded sales in Palo Alto decreased 2.79% from 218 in 2024 to 212 in 2025.
Contributing writer Xin Jiang is a real estate agent with Compass in Palo Alto.
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