San Jose Real Estate Market Trends 2026

San Jose CA Homes Statistics, Data and Facts

1. The median home sale price in San Jose in August 2025 was $1.4 million
2. 57.6% of sales in July 2025 were over the list price
3. The average time on market is 25 days
4. San Jose has 315 neighborhoods
5. The average yearly home value appreciation rate is 10%
6. The annual income required to own a median-priced single-family house is $431,962
7. The current average rate for a 30-year fixed mortgage is 6.0% to 7.5%
8. San Jose’s 10-year average is 450 sales per month
9. 807 houses have been sold as of 2025 Q3

It Is a “Somewhat Competitive” Market

In August 2025, the median sale price for a home in San Jose, California, hovered around $1.4 million, a slight dip of about 0.67% from last year. The median sale price per square foot came in at $846. Even with these small downward nudges, however, houses in the city receive four offers on average.

 

Interestingly, 3% of homebuyers across the U.S. are actively looking to relocate their from outside metropolitan areas. 76% searched within the San Jose metropolitan area. For a market already rich with local demand, these movements add extra fuel to the fire.

Selling Under and Over the List Price

In July 2025, 57.6% of home sales closed above the list price. Meanwhile, 37.4% closed under the list price. That leaves 5% closing right at the list (assuming rounding).

 

These San Jose real estate statistics suggest that, in many cases, there is a bidding component, negotiation, or seller confidence in the listing. But not every house commands over-asking offers. The median sale-to-list ratio of 1.006 indicates that listing price matters in the city.

Time on the Market and Demand

Time on market has slowed a bit month over month, but it is still a brisk average of 25 days. Properties are moving relatively quickly. The available inventory has also decreased slightly from July 2025, yet it remains higher than it was at this time last year.

 

According to MLS data, August 2025 in San Jose boasts the second-highest inventory levels for that month since 2021, though it is shy of the August average over the last decade. Demand is still strong, with buyers coming even as more listings pop up.

Why Buyers Choose It

It helps to understand how much a property is worth and why people want to live here.

 

The city spans 315 neighborhoods, and among the most appealing are Downtown San Jose, The Villages, and Silver Creek. Homeowners may find 331 public schools rated “Good” or higher, according to GreatSchools, plus 125 private or charter schools. That speaks to choices for families and high standards of quality education.

 

Employment prospects are bountiful, too, especially in tech. Moreover, there are grocery options, cafés, restaurants, and other amenities for residents.

Valuable Real Estate Properties

Numbers back San Jose’s long-standing reputation for real estate value. Over recent years, the average annual home appreciation rate has been 10%. That compounding effect is powerful. For example, someone who bought a home in the city just three years ago may have seen their property rise by $330,000 in value in that span.

 

Even stretching the timeframe further, those who purchased nine years ago have seen substantial gains.

 

In practical terms, if you are a buyer worried about market downturns, the city is among the safer bets. The probability of long-term value loss is lower here.

Affording a Single-Family House

To own a median-priced single-family home today, a household would need around $431,962 in annual income or $208 per hour in total. Meanwhile, for a median townhome or condo, the cost is $228,097, or $110 per hour.

 

The dramatic gap is pushing many buyers to consider smaller houses or multi-unit living to get a foothold in the city. Yet, people are still making it work because they see the long-term appreciation, the tax rationale, and the quality of life.

Fluctuating Mortgage Rates

Mortgage rates have been a central conversation in real estate because they shape real-world affordability. The Fed’s policy shifts have steered interest rates to ebb and flow, and buyers are watching that closely.

Right now, 30-year fixed mortgage rates are averaging between 6.0% and 7.5%, translating to higher monthly payments. Higher rates reduce the maximum purchasing power and, of course, the total buyer pool, but also cool down hyper-competition. Generally, buyers must be more deliberate.

It is Is a Seller’s Market

Over the past decade, San Jose has seen 450 monthly sales on average. In the summer, that peaks near 600 houses per month. In August 2025, the city was firmly a seller’s market.

 

Sellers enjoy multiple offers, timing leverage, favorable closing dates, and more. To truly make the most of this market, sellers must be smart and price accurately, stage and present properties properly, strategize on contingencies, and be ready for quick turnaround.

Sellers’ Advantage in 2025

As of Q3 2025, 807 houses in San Jose have sold. That is a robust quarterly performance.

 

There is a pronounced seasonal rhythm; the lowest sales volumes tend to fall around December and January, while the highest volumes show up in May and early summer.

 

Note that a brand new home typically commands a premium over a similarly sized, older one in the same neighborhood.

Final Words

Is now a good time to invest in San Jose, California, as a buyer or seller? Yes, for the right person, at the right property, with the right strategy.

On the one hand, for sellers, inventory levels are not overwhelming, but buyers are chasing. You can expect great offers, especially if you are careful with pricing and presentation.

 

On the other hand, higher rates, income thresholds, and still-competitive conditions bring more complexity for buyers. But if you think long-term, the city’s track record of appreciation, complete amenities, and education and career options make a purchase a solid bet.

 

The key for both sides is vigilance and insight. Always check the stats and use data to guide decisions. Seek expert help as well; real estate professionals have a deep understanding of the figures if you need to sell my house fast Bay Area. Never go in blind, as what works today may not work tomorrow.