The San Jose real estate market remains red hot. While it is a clear seller’s market, remaining active into late summer, it’s a very different market compared to last year’s spring peak. Demand may have shrunk, but inventory has plunged to extreme lows so it’s still far from balanced!
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 August 2023 sale price to list price ratio for San Jose single family homes slipped to 105.8% of asking, that’s -1.3% from last month per the RE Report and +5.9% from this time last year when the market was falling. For the MLS stats we pulled today, however, it shows 105.2% average in August, down from 106.9% (-1.7%) in July. Either way, the average home is selling consistently over list price in San Jose with consistent overbidding through summer.
Home prices are up from last year by approximately 12%-15% after being behind for much of this year (RE Report), and month-over-month closed sales values remained mostly stable.
The time on market sped up a hair month-over-month to a 15 day average (RE Report). When I pulled them directly, it was 17 in August and 16 in July (not shown below). Either way, it’s quick turnover averaging well below a month, making it a clear seller’s market.
Market Data: What Numbers Make a Difference
While prices and overbids have fallen significantly since last year, in some ways this year has been even more challenging for buyers. For most buyers, their ability to purchase has been severely impacted by higher rates on home loans. But the biggest hurdle for many buyers is the extreme lack of available homes.
Since March 2023 San Jose has had record breaking low inventory, continually breaking records as the lowest available listings by month in over a decade, according to the MLS data pulled today in the chart below. And it doesn’t look like inventory will be picking up any time soon, either.
Why such low inventory?
While in a more typical market we might have a number of sellers looking to “move up” or downsize, most homeowners today couldn’t afford to move or don’t want to take on a higher-rate mortgage. Now it seems like a higher percentage of the listings we are seeing comes from investors, people leaving the area, and sales by family after a death – cases where there is no pressure to repurchase or where selling is the only option. That limits significantly what is available to buyers!
Although inventory remains at record-breaking lows with higher demand than availability, sale prices and overbids are not breaking records like last year’s peak. Many buyers are experiencing significantly more pressure from higher interest rates, fluctuating stocks, and other factors limiting purchase power and lowering confidence. That said, not every home will face the same challenges – there are loads of micro markets that influence how well any given home does, so take this city-wide data with a grain of salt.
Inventory remains severely low – if you’re an active home buyer, it is slim pickings!
San Jose Real Estate Market Trends at a Glance (RE Report)
Trends At a Glance
Aug 2023
Previous Month
Year-over-Year
Median Price
$1,610,000 (-0.6%)
$1,620,000
$1,400,000 (+15.0%)
Average Price
$1,707,110 (+0.4%)
$1,701,140
$1,522,860 (+12.1%)
No. of Sales
311 (+16.5%)
267
358 (-13.1%)
Pending
272 (+5.4%)
258
501 (-45.7%)
Active
224 (+5.2%)
213
532 (-57.9%)
Sale vs. List Price
105.8% (-1.3%)
107.2%
100.0% (+5.9%)
Days on Market
15 (-8.1%)
17
23 (-34.0%)
Days of Inventory
22 (-9.7%)
24
45 (-51.5%)
Available inventory is about a third of what it was this time last year, while pending sales are not quite down by half, and closed sales have barely budged by comparison. Please keep reading below for more data and market analysis.
Willow Glen is one of the most charming areas of San Jose, consisting of many older homes which feature lovely, classic architecture. Most Silicon Valley home buyers treasure the Willow Glen charm and ambiance, but many are seeking newer homes. A fabulous option is “The Willows“.
KB Homes built “The Willows” in 1999 to 2000. It is tucked away at the southernmost tip of Willow Glen, off of Foxworthy Avenue & close to Almaden Expressway, but only about 2.5 to 3 miles from all the action on Lincoln Avenue.
The tree-lined streets are built in something of a loop shape with Rubino Circle being the main access or loop road. Situated on the inner part of the loop are homes with smaller lots that are a little more affordable. The outer part of the circle is built with slightly larger homes on larger lots (but none of the lots are “big”). Sidewalks with soft curbs at the corners accompany the streets and make for a pedestrian-friendly, bike, wheelchair or stroller friendly area. Visit in the early evenings and you will see children and adults walking, strolling, taking dogs for a walk etc. – always a good sign! Because the neighborhood is a bit like an oversized cul-de-sac (no through traffic), it is very quiet in terms of traffic. The area has large street lights, too, making for a safe feeling community.
When locals think of Willow Glen, most will picture the charming historic homes and bustling downtown strip, but this attractive community extends beyond the historic blocks. The Willow Glen Neighborhood Association defines the Central and Historic Willow Glen area apart from the Greater Willow Glen Neighborhood and Planning Area, roughly 10.4 square miles with approximately 82,000 residents. One of the scenic communities of the greater Willow Glen area is Doerr Park.
Doerr Park
Doerr Park, sometimes called Doerr-Steindorf or simply Doerr, is within the 95124 zip code of San Jose, not far from the Cambrian border. The boundaries of this community are Curtner Ave, Meridian Ave, Foxworthy Ave, and Leigh Ave (See it on this Google Map). It is marked by tidy homes and yards with neat green lawns and airy street trees. Towards the center of this highly walkable neighborhood sits a nearly 12 acre city park. Doerr Park is a sunny community park with expansive lawns, open tree groves, picnic benches with barbeque stations, two magnificent playgrounds for different age groups (one of them has 3-tiered climbing towers and long slides for the older children!), a basketball court, softball field, four tennis courts, and restrooms. The park is very popular!
This neighborhood is accessible, too! There’s shopping and an office complex at the corner of Foxworthy Ave and Meridian, with a Grocery Outlet, gas station, and bank. It’s very close to more shopping including restaurants, Target, Home Depot, and more. For commuters, it’s only a 6 minute drive to 85, 17, and Almaden Expy, and there are bus lines which run along Curtner and Leigh.
There are a few possible negatives to consider, however. Some areas are beside easements for high voltage power lines, though a large portion of the easement connecting to the park has recently been transformed into a community trail. Not all phone lines are under ground, which might be considered an eyesore by some.
The Hacienda Gardens subdivision in San Jose straddles the Willow Glen and Cambrian districts, and it enjoys the highly regarded Cambrian schools. Homes and lots tend to be a little on the small side, so prices are relatively affordable as Willow Glen or Cambrian neighborhoods go, especially for such a strong school district. As San Jose real estate goes, this is a good value area due to great schools, more modest prices and lots of great amenities in the immediate area.
What are homes like in the Hacienda Gardens neighborhood?
There are around 550 houses in this San Jose subdivision. They were built originally in 1953 and 1954, though some may be newer or rebuilt since then. Ranch style homes, they were constructed with 3-4 bedrooms and 1 or 2 bathrooms and came with an attached one or two car garage. The builder used slab foundations and wall heaters, but many home owners have since added forced air heat (and central air conditioning).
Square footage of these houses runs from 1060 SF to 1400 SF in 82% of the homes (I crunched the numbers using county real estate records via the Realist Report), but 78 are larger than this (18%) and one is a hair over 3,000 SF.
Most of the neighborhood has parcels of around 5500 square feet, as a ballpark. I ran the data on this too and found 486 of the 550 or so homes had lot sizes of 6000 SF or less (88% of the homes). But just like with the house sizes, there are a few that are bigger – 64 or 12% are larger than this, and the largest parcels are 1/4 acre or more.
There’s some new construction close to the shopping center too – it was built in very recent years. When I get more info on those homes, I will update this article.
Where is the Hacienda Gardens area?
This corner of San Jose is entirely in the 95124 zip code, but about one third is north of Foxworthy (and just south of beautiful Doerr Park), which our MLS refers to as the Willow Glen area, and the other two thirds is between Foxworthy and Hillsdale, just west of Meridian Avenue, in the Cambrian area.
Adjacent to this neighborhood is the Hacienda Gardens Shopping Center, which runs between Hillsdale, Meridian, and Foxworthy Avenues. In recent years that shopping center changed hands and has been given a gorgeous facelift, making it a place neighbors will appreciate having in close proximity. It is home to a good-sized Rite Aid store, the long-term tenant Hometown Buffett, and a number of other restaurants offering pizza, Chinese food, and BBQ as well as other shops, institutions, and stores, such as Wells Fargo. (more…)
Located on a quiet, tree lined street in the St. Francis Woods neighborhood of Willow Glen, San Jose, a stunningly remodeled and spacious home at 1548 Santa Inez Drive is a dream home in a fabulous neighborhood.
Offered for sale at $875,000 – Approximately 2028 square feet on a comfortable 8250 SF lot (per county records), this lovely 3 bedroom, 2.5 remodeled bath home has truly spacious living areas, a kitchen that will knock your socks off and a backyard perfect for entertaining. Please enjoy the virtual tour, below, then get all the details next.
Highlights of this Willow Glen home for sale include:
3 bedrooms with lovely crown molding & large, classic base
2.5 elegantly remodeled bathrooms
High-end, remodeled kitchen featuring slab granite counter tops and complimentary tile back splash with granite accent pieces
Stainless steel sink and appliances
GE Profile set of ovens (2 plus warming drawer)
Miele 5 burner gas range
Bosch dishwasher
GE Profile microwave
Extra high ceiling with a canopy of recessed lights
Tasteful and unique two tone cabinets – wood on bottom, black on top pieces with under-cabinet lighting installed, pullouts and “lazy Susan” too
Loads of storage & counter space plus a pantry
Floor made of large tiles, theme carried from entry hall into half bath, laundry area and pantry too
Christie's International Real Estate Sereno, Los Gatos, CA 95030 408 204-7673 Mary@PopeHandy.com License# 01153805
Clair Handy, Realtor
GREEN
Christie's International Real Estate Sereno 214 Los Gatos-Saratoga Rd Los Gatos, CA 95030 ClairHandy@sereno.com License# 02153633
Mary & Clair sell homes throughout Silicon Valley: Santa Clara County, San Mateo County, and Santa Cruz County. with a special focus on: San Jose, Los Gatos, Saratoga, Campbell, Almaden Valley, Cambrian Park.
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The San Jose real estate market remains red hot. While it is a clear seller’s market, remaining active into late summer, it’s a very different market compared to last year’s spring peak. Demand may have shrunk, but inventory has plunged to extreme lows so it’s still far from balanced!
