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San Jose Real Estate MarketThe San Jose real estate market continues to be a deepening seller’s market with no signs of letting up.

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 May 2022 sale price to list price ratio for San Jose single family homes slipped again to 113.0% of asking (-3.1% from last month), but remains up from a year ago when was 111.2% (+1.6% from then)
  • Home prices are up roughly 17-19% from a year ago (almost a typical 20% down payment!)
    • The median sale price is $1,742,500 (a dip from the prior two months, but way up from a year ago, when it was $1,470,000 (+18.5%)
    • The average sale price was $1,864,960 (-3.2% from last month, and +17.6% from May 2021)
  • The days on market slowed a hair to 11 (same as in May 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 in a market still seeing historically high prices.

We are seeing slight signs of cooling in the market with fewer offers and some data points just a hint calmer than a month ago. Prices are not climbing like they were earlier this year, but they’re not falling either and interest rates are rising.

Nationwide, inventory is rising pretty noticeably, and we’re starting to see some growth around Silicon Valley, too. So are we getting back to normal inventory? Let’s have a look at what has historic inventory has looked like in San Jose. (If the chart is too small, click to see in full size.)

San Jose Historic Active Inventory of Listings 6-8-2022

At the start of the chart, 2010, the market was still reeling from the 2008 recession, but by 2017 we were seeing a strong sellers market with record low inventory. While listings are certainly up from 2021’s rock-bottom lows, it’s still extremely limited and nowhere near the inventory of more balanced years like 2013 and 2014.

So while inventory has been growing, there is still a shortage. If it continues to grow, prices should level out or drop. But will it be 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 May 2022 Previous Month Year-over-Year
Median Price $1,742,500 (-0.4%) $1,750,000 $1,470,000 (+18.5%)
Average Price $1,864,960 (-3.2%) $1,926,180 $1,585,920 (+17.6%)
No. of Sales 450 (-9.8%) 499 551 (-18.3%)
Pending 656 (-2.4%) 672 652 (+0.6%)
Active 441 (+19.5%) 369 295 (+49.5%)
Sale vs. List Price 113.0% (-3.1%) 116.6% 111.2% (+1.6%)
Days on Market 11 (+18.5%) 9 11 (-1.0%)
Days of Inventory 29 (+37.1%) 21 16 (+83.0%)

 

Year over year and related charts from MLS Listings

I pulled these directly from the MLS myself today (6/8/2022). The limited data from this month is included in red, but as it is an incomplete picture with data based only on home sales that closed between June 1th – June 8th it should be taken with a grain of salt. As with the earlier chart, click to view the full size.

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!

San Jose Historic Sales to List Price Ratio 6-8-2022

San Jose sale price to list price ratio – click to view larger

Notice that MOST YEARS, but not always, the sale price to list price ratio tends to peak around April with a rise between March and April and a dip from April to May. It fell a little in 2020, but that did not turn into the correction we all anticipated at the start of COVID. Look into late 2020 and you’ll see that all we were actually experiencing was a slight breather – very slight.

Now looking at the most recent numbers, winter 2022 started off raging hot and spring hit it’s peak for overbids in March and began to decline in April. While the sales to list price ratio is slipping, it’s still higher than any past year.

Please keep reading below.

Average price per square foot

This one had a dramatic increase. Prior to February 2022, the monthly average price per SF never topped $1,000, but it moved well past it and seems determined to stay there.

San Jose Historic Price per SqFt 6-8-2022

 

Average sales price of homes in San Jose, CA

Finally, the average sale price. With fewer offers (not a data point that is well tracked by the MLS as it is an optional entry field for the listing agents), we would expect prices to flatten or lower a bit. May 2022 has dropped from April, and the incomplete data from June suggests that might continue to the next month.

San Jose Real Estate Market Analysis - Average Sale Price

 

That’s it for the hand pulled data this month, now for some live charts which update weekly.

 

Altos Charts for the San Jose real estate market as a Whole – automatically updated each week – single family homes

First, the market profile and then the basic charts for single family homes or houses in San Jose. FYI, Altos uses LIST prices, not sold prices.

The Altos chart above provides a good sense of the market, but it uses list pricing, and sales are often about 10% – 30% higher – hundreds of thousands of dollars more!

 

 

Altos Charts, updated automatically, by price quartile for San Jose single family homes

If you aren’t on data overload yet, next please check out the live charts.

List prices of single family homes / houses by price quartile:

 

Real Estate Market Chart by Altos Research www.altosresearch.com

 

Average days on market of listed homes (houses) by pricing tier:

 

Real Estate Market Chart by Altos Research www.altosresearch.com

 

Inventory levels for the last 3 years for houses for sale in San Jose:

 

Real Estate Market Chart by Altos Research www.altosresearch.com

 

Just look at it fall! We’re not out of the red yet!

Altos Research charts for the condominium and townhouse realty market in San Jose – automatically updated each week

Condominium and townhouse LIST prices by quartile:

 

Real Estate Market Chart by Altos Research www.altosresearch.com

Again, like the housing market, these separate quartiles parallel the up and down trends very closely.

Average Days On Market for condos and townhomes in San Jose:

 

Real Estate Market Chart by Altos Research www.altosresearch.com

 

Inventory of available properties among condos and townhomes:

 

Real Estate Market Chart by Altos Research www.altosresearch.com

 

 

Now let’s go back to the ReReport to see what it says about the San Jose townhome and condo market.

Trends at a Glance: San Jose real estate market for condos & townhomes

If you are viewing the table below on mobile, it is responsive: please swipe to see more of it. See the full condo ReReport here.

San Jose real estate market: condo summary from the RE Report

Prices haven’t changed much from April, but are up about 16% – 26% from a year ago. The sale to list price ratio is steep, but it’s not nearly as high as it is for the single family home market.

Trends At a Glance May 2022 Previous Month Year-over-Year
Median Price $912,500 (+1.4%) $900,000 $725,000 (+25.9%)
Average Price $931,407 (-3.5%) $964,816 $798,794 (+16.6%)
No. of Sales 216 (-18.5%) 265 249 (-13.3%)
Pending 271 (-6.2%) 289 312 (-13.1%)
Active 184 (+36.3%) 135 198 (-7.1%)
Sale vs. List Price 110.0% (-2.1%) 112.3% 103.9% (+5.9%)
Days on Market 11 (+35.3%) 8 20 (-42.0%)
Days of Inventory 26 (+73.0%) 15 24 (+7.1%)
San Jose’s markets may have faced some major challenges this year and last, but it’s remained consistently in the seller’s favor.

Related info:

The Evergreen area of San Jose (includes a market report)

Willow Glen real estate market – San Jose 95125

The Cambrian Park Real Estate Market Update

Almaden Valley Real Estate Market Conditions

And these are areas we also work in. These areas are updated every month or so.

The real estate market in San Jose’s Santa Teresa area

The real estate market in San Jose’s Blossom Valley area

The Cupertino Border, or San Jose CA 95129 Real Estate Market Info

Interested in areas outside of the City of San Jose? I make monthly updates for many areas around Silicon Valley, such as Los Gatos, Campbell, Saratoga, Santa Clara, and Sunnyvale, so feel free to check out my other market posts as well, under How’s the Market? or Market Reports! You can also find City, Town, and Neighborhood descriptions here to help you get acquainted with the area.

Authors

  • Realtor, GREEN | DRE 02153633 | Christie's International Real Estate - Sereno

  • Silicon Valley Realtor, selling homes in Los Gatos, Saratoga, San Jose, Silicon Valley, and nearby since 1993. Prolific blogger with a network of sites.