The San Jose real estate market is a strong seller’s market, and it has been for months. Available inventory remains unbelievably low and can’t keep up with the high demand. This article is updated monthly with the latest market data. Here’s a sample of the latest for San Jose’s single family housing market:
- The September 2021 market was distinctly hotter than the year before.
- San Jose homes took an average of only 14 days to sell.
- The average sale to list price ratio was a red hot 108.1%.
Last year the spring market experienced mild unseasonable cooling, but from the summer of 2020 on it’s been heating up in San Jose. Early winter saw a hint of seasonal cooling, but by mid-winter it was heating right back up again! Finally, after a hyper-competitive spring, summer 2021 finally experienced some slight market cooling. This is shown in the San Jose housing market data below, and I’ve also experienced it in my own real estate practice.
These charts will not reflect the full effect of the pandemic on the market. It will take a while before we see the full picture on how it impacted realty, but for now you can read about the Coronavirus’ impact on real estate sales on my other post.
Early on in the shutdown, the Multiple Listing Service (MLS) stopped the timer on all Days on Market (DOM). Therefore these numbers will be off beginning from March 17th through around May 17th of 2020. In the data below, this will affect any numbers related to the days on market, the absorption rate, and the days of inventory. Current numbers are accurate, but disregard this data for those previous months.
First please find the Altos Research Charts, a live feed of data on the housing markets in San Jose. You will then also find the RE Report, charts with statistics comparing sales in the last month and comparing them month-over-month and year-over-year. These are both the usual tools I use to gauge a market. Directly below are links to the market analysis of specific neighborhoods in San Jose. Some of these, where I work the most, are updated monthly, and others are updated every few months.
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. The RE Report further down uses SOLD prices (which is part of the reason why I utilize both).
This real time market San Jose housing market profile (updated October 11th) shows steady low inventory, speedy days on market, and high market action bouncing back after a recent decline. San Jose is in a strong seller’s market and holding, according to Altos! The Median List Price (for condos and houses combined) is usually stable around $1,250,000, though it has been getting nearer and nearer to $1.3 mil since last year and, around the spring peak was sticking close to $1.35!
List prices of single family homes / houses by price quartile:
The chart above showed growth throughout every price tier into late spring and mid-summer. There was a slight drop in late summer, and most areas are holding level into autumn. Usually all four price sectors parallel each other almost exactly, following the same gentle ups and downs throughout the year. The highest price point tends to follow similar trends but with more dramatic fluctuations than the rest.
Average days on market of listed homes (houses) by pricing tier:
Here we see more variation between tiers. While overall pricing ups and downs follow clear trends across all sectors, the days on market can vary and shift wildly between individual segments. At times the fastest or slowest markets might change positions. Recently, the second highest price tier did just that, moving from the slowest to the fastest spot from around January – April 2021. Right now the bookends of the market (the highest and lowest priced homes) are moving slightly slower than the middle tiers with the upper tier moving fastest. Remember that the data for March 2020 through May of 2020 for this chart is inaccurate.
Inventory levels for the last 3 years for houses for sale in San Jose:
This chart shows the total inventory over the last 3 years. For a while, just around the end of 2016 was the peak of inventory, but that was beaten just in the second half of 2019. After plummeting through winter, 2020 hit it’s highest inventory earlier than usual and began it’s seasonal decline ahead of normal, falling to winter lows we haven’t seen since 2018. We’re still seeing those extreme lows in 2021 and inventory hasn’t grown as quickly as it has in past years, staying unseasonably low all spring. Summer of 2021 finally saw growth again, but it’s remained well behind previous years and topped-out by September.
Altos Research charts for the condominium and townhouse realty market in San Jose – automatically updated each week
Condominium and townhouse LIST prices by quartile:
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:
Everything’s a little tighter in the condo charts, but this data swings wildly. Right now the lowest priced tier of the condo market is selling more slowly than the higher tiers. All areas have a good average turnover with most taking about 1 month on average, and the lowest price tier being the slowest at almost 50 days.
Inventory of available properties among condos and townhomes:
Condos didn’t have quite as big a peak as houses did for inventory in recent years (though they did well in 2019), nor did they take as sharp a drop at the start of the year low. Usually they follow the same trends as single family homes with more mild swings. As in the housing market, inventory skyrocketed in 2019. While 2020 peaked above the 2018 high it fell short of 2019 and has been stuck in that low for much longer than usual. That said, inventory has seen almost no growth 2021!
But the San Jose market is a very general gauge. This expansive city is made up of many communities which can have vastly different markets.
I try to update these housing market posts regularly every month as the RE Reports come in, so around the second week of the month, maybe earlier. These are the areas I am most active in San Jose.
And these are areas I also work in. These areas are updated every month or so.
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.
Now for a market update on the City of San Jose as a whole:
First, using the ReReport. You can find the whole ReReport here.
Here is the chart for the market in single family homes in the city of San Jose.
City of San Jose real estate market – Trends at a Glance
If you are viewing the table below on mobile, it is responsive: please swipe to see more of it.
|Trends At a Glance||Sep 2021||Previous Month||Year-over-Year|
|Median Price||$1,425,000 (-0.8%)||$1,437,000||$1,242,100 (+14.7%)|
|Average Price||$1,507,610 (-3.3%)||$1,558,700||$1,338,910 (+12.6%)|
|No. of Sales||478 (-3.0%)||493||503 (-5.0%)|
|Pending||688 (+8.2%)||636||576 (+19.4%)|
|Active||275 (-13.2%)||317||383 (-28.2%)|
|Sale vs. List Price||108.1% (-0.6%)||108.8%||103.3% (+4.7%)|
|Days on Market||14 (+19.8%)||12||20 (-26.0%)|
|Days of Inventory||17 (-13.5%)||19||22 (-24.4%)|
September closed sales and active inventory took a dip from the month before, while pending sales saw increases. Compared to last year pending sales were up by a good deal, closed sales fell short, and active inventory is extremely low. Days on market held at 2 weeks with the average sale speeding at only 14 days. The sales vs list price ratio cooled a hair from last month and rose well above last year to a whopping average of 108.1% of asking!
It’s an extremely strong seller’s market still red hot and heavily impacted by a backlog of demand and continual low inventory.
Now let’s turn to the condo and townhouse market, which is looking more volatile than the single family housing 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.
|Trends At a Glance||Sep 2021||Previous Month||Year-over-Year|
|Median Price||$775,000 (-0.6%)||$780,000||$730,000 (+6.2%)|
|Average Price||$809,584 (-1.6%)||$822,900||$756,924 (+7.0%)|
|No. of Sales||239 (+7.7%)||222||216 (+10.6%)|
|Pending||296 (+4.6%)||283||216 (+37.0%)|
|Active||192 (+3.2%)||186||331 (-42.0%)|
|Sale vs. List Price||103.8% (-0.2%)||104.0%||100.3% (+3.5%)|
|Days on Market||16 (+8.3%)||15||26 (-38.2%)|
|Days of Inventory||23 (-7.3%)||25||44 (-47.6%)|
Closed sales, pending sales, and active inventory all increased for condos in September. Both closed and pending sales rose well above last year, meanwhile active inventory was only a drop in the bucket year-over-year. This market is following similar trends to the housing market, but isn’t facing the same level of activity; so while it is in a strong seller’s market it’s not as competitive for buyers. The sales to list price ratio cooled a hair to 103.8%, keeping high above last year, and days on market slowed a hair to a speedy 16 days. The townhouse and condo market in San Jose is in a reliable seller’s market.
San Jose’s markets may have faced some major challenges this year and last, but it’s remained consistently in the seller’s favor.