First, some quick data from my RE Report via the bullets and chart below. There appears to be a small amount of undercounting or overcounting between the RE Report and MLS Listings, but the information is still good for tracking trends.
- The April 2022 sale price to list price ratio for San Jose single family homes shrunk slightly to 116.6% (-1.8% from last month), but a year ago it was 111.2% (+4.9% from then)
- Home prices are up roughly 24% – 25% from a year ago (more than the typical 20% down payment!)
- The median sale price is $1,750,000 (unchanged from March, but way up from a year ago, when it was $1,415,000 (+23.7%)
- The average sale price was $1,926,180 (+4.0% from last month, and +25.2% from April 2021)
- The days on market slowed a hair swung back to 9 from 10 (it was 12 in April 2021).
War, inflation, stock market, recession concerns – and real estate
Many of our home buyers are financially powered by tech stocks, stock options, and RSUs. When the stock market tanks, some buyers will rush to put their cash into real estate (the quip we often hear is that “real estate does not go to zero” and “at least you can live in it”. At the same time, if the most amply capable buyers don’t want to sell their holdings at a 10% or more discount, that will impact how much they are willing to pay.
For some, the rising interest rates combined with the lower stock values have been a double whammy on affordability.
We are seeing some slight signs of cooling in the market with fewer offers and some data points just a hint calmer than a month ago. Prices continue to rise, though, and so do interest rates. Nationwide, inventory is rising pretty noticeably. If that happens here, prices should level out or drop. But will they do it on par with interest rates rising? No one knows.
The data below in the “trends” chart is from our Real Estate Report for the City of San Jose.
San Jose Real Estate Market Trends at a Glance (RE Report)
|Trends At a Glance||Apr 2022||Previous Month||Year-over-Year|
|Median Price||$1,750,000 (0.0%)||$1,750,000||$1,415,000 (+23.7%)|
|Average Price||$1,926,180 (+4.0%)||$1,852,840||$1,538,330 (+25.2%)|
|No. of Sales||499 (+22.3%)||408||636 (-21.5%)|
|Pending||672 (-1.2%)||680||589 (+14.1%)|
|Active||369 (+33.7%)||276||314 (+17.5%)|
|Sale vs. List Price||116.6% (-1.8%)||118.7%||111.2% (+4.9%)|
|Days on Market||9 (-4.1%)||10||12 (-24.6%)|
|Days of Inventory||21 (+5.7%)||20||14 (+49.8%)|
Year over year and related charts from MLS Listings
I pulled these directly from the MLS myself today.
The San Jose Real estate market’s sale price to list price ratio – notice the huge jump from last year, and then notice the ongoing streak of record breaking highs!
Notice that MOST YEARS, but not always, the sale price to list price ratio rises between March and April. It fell a little in 2020, but that did not turn into the correction we all anticipated with the start of COVID. Look into late 2020 and you’ll see that all we were actually experiencing was a slight breather – very slight.
Please keep reading below.