Are home prices dropping in San Jose?

Are home prices dropping in San Jose? The Bay Area housing market is cooling all over.

  • Overall, yes, we have home prices dropping in San Jose month over month.
  • As of now, home prices are not down year over year for the city generally.
    • in some areas, price points, or select segments, year over year prices could be up or down as compared to a year ago
    • in part of the market, the year over year number is flickering back and forth (see the $2 million pricing band, below)

Let’s see what the data says. I pulled this from MLS Listings just now for all of the city.

In what price points do we see home prices dropping in San Jose?

If we look at all San Jose single family homes (mostly houses, but a few duet homes), we can see that prices were higher in April 2022 than they are now. In general, values have been falling month over month since April’s peak.

We also note that prices do not only go up, that there are many movements up and down over the course of a few years. The first question we should ask is if this is seasonally normal or not. From the graph below, it appears clear that while home values do rise and fall seasonally, this is a larger drop than is typical, and it’s both faster and steeper. Please also see Seasonal Pricing Patterns on this site.

 

Month over month, home prices are dropping in San Jose, CA for single family homes - chart from 2016 to present

This is a lot of sales over the years – 30,691 in all.

If we view this same info in a data table of average sale prices, we can better compare any particular month to the same month in other years. This eliminates the normal seasonal fluctuation.

The peak pricing was April 2022. The average sale price for July 2022 remains above July 2021 and all previous Julys. In 2018 prices got a bump and went down in 2019, but marched upward again after that.

 

Data table - Average sale price in San Jose - SFH all price points

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