Why Does It Feel Like There’s No Inventory in the Stanford Circle Market?
Over the past few weeks, whether at open houses or in conversations with clients, I've heard the same question repeatedly: "Why does it suddenly feel like there's so little inventory available in Silicon Valley right now?"
Interestingly, the real estate data tells a more nuanced story. In the Stanford Circle markets—including Palo Alto, Atherton, Los Altos, Los Altos Hills, Menlo Park, Woodside, and Portola Valley—the main issue isn't a dramatic shortage of total new listings. The real question is how quickly the best homes disappear.
Silicon Valley Housing Market Data: April vs. May 2026
Through May 2026, the Stanford Circle market recorded 845 new listings—nearly identical to 2024 and only slightly below 2025. Looking at the aggregate data, homeowners haven't stopped listing their properties. However, a closer look at the last 60 days reveals an important seasonal shift:
April 2026 New Listings: 214 homes
May 2026 New Listings: 156 homes (A decline of roughly 27% month-over-month)
While spring inventory typically remains strong through May, this year's seasonal surge faded earlier than expected.
What is the Current Months of Inventory (MOI) around Stanford?
The true driver of this market tight feeling is the Months of Inventory (MOI), which measures supply versus demand velocity. The lower the MOI, the stronger the competition for available homes.
May 2025 MOI: 2.1 months
May 2026 MOI: 1.3 months
The Disconnect Between Perception and Reality
This 1.3-month MOI explains the gap between what buyers feel and what the numbers show. New luxury inventory is being absorbed by buyers almost instantly, leaving fewer active options on the market at any given time. Buyers experience an increasingly competitive market even though the total number of new listings remains relatively healthy.
For Real Estate Sellers: This continues to be a highly favorable environment with limited active competition.
For Real Estate Buyers: Waiting for more inventory may not necessarily lead to more choices.
In premier Silicon Valley markets, housing scarcity has never been defined by the number of listings alone. It is defined by the availability of truly exceptional homes.
