May is where the 2026 story really begins: the South Bay hit its flat point. Year-over-year appreciation across the seven cities I cover sat at exactly 0.0%, the market's floor, with the Peninsula already pulling up and the East Bay still finding its footing. Here are the real numbers from Zillow's May 2026 data.

The headline numbers

  • Median typical value (7 cities): $1.97M
  • Average YoY: 0.0%, dead flat, the low point of the year so far
  • Median days to pending: 13, the fastest pace of the summer
  • Direction: 5 of 7 cities positive YoY, 2 negative

Flat isn't weak. A 0.0% annual read with homes going pending in 13 days is a market in balance: buyers and sellers meeting, not a standoff. Everything that happened in June and July (the annual number climbing to +0.6%, then +1.4%) started from this base.

City by city

Positive:

  • Palo Alto: $3.58M, +2.6% YoY (11 days to pending)
  • Cupertino: $3.02M, +2.2% YoY (12 days)
  • San Mateo: $1.68M, +1.6% YoY
  • Mountain View: $1.97M, +0.3% YoY
  • Sunnyvale 94087: $2.07M, +0.1% YoY

Negative (the cyclical low):

  • Fremont: $1.49M, −4.1% YoY, the deepest decline of the year
  • Milpitas: $1.44M, −2.5% YoY

What it means

May marks the bottom for the East Bay value cities. Fremont's −4.1% and Milpitas' −2.5% are the widest year-over-year gaps you'll see in this three-month window. Both narrow from here. If you were waiting to catch Fremont or Milpitas near the floor, May was the month the floor showed up.

Meanwhile the Peninsula was already off the mat: Palo Alto and Cupertino going pending in 11–12 days at 2%+ appreciation.

What I'm telling clients

Buyers: This is the "buy the dip" month in hindsight for Fremont and Milpitas. In the prestige tier, a 13-day pace means bring your best offer, not your lowest.

Sellers: Speed was on your side in May. Well-prepped homes cleared in under two weeks; the fast pace rewarded sellers who were ready.

Investors: A 0.0% regional floor with strong schools and fast absorption is exactly the setup for disciplined entry. Milpitas duplex math still works. Verify rents with live comps before you move.

Data: Zillow Research, ZHVI typical home value and median days-to-pending, seven-city set, month ending May 2026. ZHVI reflects typical home value, not median sale price. Figures update monthly.

Swati