The San Jose real estate market is cooling with lower numbers of house sales happening and inventory close to level in many areas (and growing in some).  When this happens, prices tend to soften.

The numbers for August’s Real Estate Report are coming in (see links below) and interestingly, the average and median sales prices are up in many parts of Silicon Valley.  Does this mean home values are rising?  Perhaps. Or it could simply mean that some of the more expensive homes are starting to move.  It really depends on the area, price point, school district, and other factors.  This is true across all of Santa Clara County’s real estate market. Please see the report online for full details.

Here are some quick numbers for houses (not condos) in San Jose:

For the city of San Jose as a whole, sales in August dropped 9.8% from July , and were down 23.2% year-over-year.  The median sales price rose  2.8% from the previous month, up 17.0% compared to last year. The average price rose 4.5%, a yearly gain of 14.4%. Inventory fell 0.1% from last month, and was down 11.7% year-over-year.

August 2010 San Jose Real Estate Market

In the Cambrian Park area of San Jose, sales in August fell 26.8% from the month before, and were down 26.8% year-over-year.  Prices improved in Aug 2010 with the median price climbing 2.5% from the previous month, up 3.3% compared to last year. The average price rose 2.3%, a yearly gain of 3.6%.  Inventory fell 7.1% from last month, and was up 15.0% year-over-year.

Almaden Valley, a pricier than average district in San Jose, saw significant market improvement with sales up 23.1% from July, and rose 3.2% year-over-year. The median sales price rose 1.4% from the previous month, up 9.7% compared to last year. The average price rose 0.7%, making for a yearly gain of 2.1%.  Inventory fell 3.5% from last month, and was up 24.6% year-over-year.  Almaden is bucking the tide of most of the rest of San Jose – the market is fairly strong there, while it’s weakening in many other parts of town.

An area with both entry level and expensive homes, Willow Glen saw a dramatic drop in the market with sales falling 37.3% from the month before, and total numbers of sales down 31.5% year-over-year. Despite that, overall, prices improved in Willow Glen with the median price climbing 15.9% from the previous month, up 12.9% compared to last year. The average price rose 14.6%, a yearly loss of 2.4%.  (In some areas I’m following closely, prices are dropping.  It may have to do with price point, school district, proximity to the Lincoln Avenue downtown area, etc.)  Inventory rose 1.3% from last month, and was down 1.3% year-over-year.

in Los Gatos, by the way, Sales fell 21.2% from the month before, and were up 4.0% year-over-year.  Prices improved in Aug 2010 with the median price climbing 5.3% from the previous month, up 22.9% compared to last year. The average price rose 5.7%, a yearly gain of 14.8%.  (We are seeing some more expensive homes selling – this does not mean that individual home values are going up at this time.)

Inventory fell 1.4% from last month, and was down 4.6% year-over-year.

What about San Jose condominiums and townhouses?  Those sales, in contrast, are pretty strong!

For all of San Jose’s condo real estate market, inventory is down (down 2.7% from July and off 10.7% from a year ago) and sales are up.  Sales increased 10.3% from the month before, and were down 6.8% year-over-year.  Prices improved in Aug 2010 with the median price climbing 11.1% from the previous month, up 12.4% compared to last year. The average price fell 2.3%, a yearly gain of 7.8%.

To see info on the market in San Jose and all over Santa Clara County, please visit my Real Estate Report. Or contact me to discuss the market in your area.

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