Average home price in san jose ca

The plunge in housing prices in San Jose this past spring was the steepest of any large city in the U.S.

From April to June in the South Bay city, home prices fell an average of $75,000, which is the most among the 50 top U.S. markets, the Silicon Valley Business Journal reported, citing a new study.

The average home price in San Jose decreased from $1.56 million in April to $1.49 million two months later, which is a 5.1 percent decline, according to a report from Black Knight.

Home prices also cooled over the two-month period in 11 other top 50 markets, with seven seeing prices fall by at least 1 percent.

California alone had four cities on the list, including San Francisco, where average home prices fell by 2.8 percent, San Diego was down 2 percent, Los Angeles was down 1.3 and Sacramento was down 1.1-percent.

Riverside fell somewhere in the middle of the declining cities and was down 0.7 percent.

Despite those rough two months, average home prices are still up from a year ago in those declining markets. But prices are rising slower on an annualized basis than they were prior to the spring.

San Jose’s housing price growth is down 11.4 percent from its highest point over the past year, while Riverside is down 10.5 percent, San Diego is down 9.8 percent and San Francisco is down 9.6 percent.

You’ll need to look in Texas to find the city that’s seen its housing appreciation fall the most. In its capital city of Austin, the annualized price increase fell 22 percent.

– Dana Bartholomew

Read more

• San Jose has nation’s largest decline in home prices
  
• Bay Area home prices fall a record 7 percent from May to June
  
• Bay Area leads nation on $1M+ homes as piece of market
  

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 September 2022 sale price to list price ratio for San Jose single family homes rose a hair to 100.4% of asking (+0.4% from last month), and remains below last year for the fourth month in a row.
• Average monthly home prices are up from a year ago after falling below last year in August for the first time since 2019
  • The median sale price is $1,450,000 (+3.6% from the month before, and +2.7% from a year ago)
  • The average sale price was $1,556,090 (+2.0% from the month before, and +3.5% from last year)
• The days on market slowed again to an average of just under a month at 28 days, almost twice as long as last year

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”.

For some, the rising interest rates combined with the lower stock values have been a double whammy on affordability in a market still seeing sky high prices. If the most amply capable buyers don’t want to sell their holdings at a 10% or more discount from what they were, that will impact how much they are willing to pay.

We are finally seeing signs of cooling in the market with homes recieving fewer offers than they may have at the peak of the market, and prices are coming down. That said, much of the entry-level market is still raging hot. The best homes, when appropriately priced and marketed, are still recieving multiple offers and selling well above asking.

However one thing is keeping the market hot: limited inventory. Nationwide, inventory has begun to drop again and overall we remain in a housing supply shortage (each market will vary, of course). So how far off are we from “normal” inventory levels? Let’s have a look at historic active listings in San Jose. (If the chart is too small, click to see in full size.)

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 limited and well below that of more balanced market years like 2013 and 2014.

Will the shortage of homes lead to wild market action like earlier this year? Unlikely. With everything else that’s changed such as the interest rates rising. But will it continue to cool or will it heat up again in autumn? We’ll have to wait and see.

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)

Please keep reading below for more data and market analysis.

Year over year and related charts from MLS Listings

I pulled these directly from the MLS myself today (10/14/2022). The partial data from this month is included in gray, but as it is an incomplete picture of the month 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 –  what a rollercoaster! The streak of record breaking highs that going from around mid-2021 through spring of 2022 is mind boggling! After reaching astronomical heights, the streak came crashing down in June 2022. August was the coolest we’ve seen since 2011 for this ratio! September picked back up, but it was cooler than most years.

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 very rapidly.

Average price per square foot

This one has also seen a dramatic increase and remains a little above last year. Prior to February 2022, the monthly average price per SF never topped $1,000, but it moved well past it and held there for the first half of 2022. Now that number has finally come down like the rest of the market.

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. Prices peaked a tad earlier than usual in April 2022 and the average price has been declining significantly since – roughly $100K a month from April to August! Prices are slightly higher than last year and still significantly higher than 2019 or 2020.

The market has been cooling almost as dramatically as it was accelerating earlier this year!

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. Compared to list pricing, sales higher – sometimes 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. These update about once per week, so check often.

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

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

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

Things were looking hopeful in summer that more inventory was on the way, but 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:

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

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

Inventory of available properties among condos and townhomes:

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 have come down from spring heights, and this market has also finally dropped below a year ago. The sale to list price ratio has finally risen again month-over-month and prices are up. Closed sales rose, as did inventory, however pending sales fell significantly. There are mixed signals in this data, but overall it remains a sellers market that’s significantly cooler than what we saw last spring or winter.

San Jose’s markets may have faced some major challenges this year and last, but as long as demand remains high and we have a scarcity of homes it’s likely to stay in the seller’s favor – even while it’s cooling down.

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.

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

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

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