San Jose, CA Housing Market Report

The San Jose real estate market is currently navigating a period of recalibration as we conclude 2025. While the median home value of $1,379,464 reflects a 2.78% decline compared to the previous year, the market is showing signs of a late-year resurgence. With a sale-to-list ratio of exactly 1, the environment has shifted from the frantic bidding wars of previous years toward a more balanced state. However, the 15.8% increase in active inventory suggests that buyers finally have more options to choose from, even as the market remains competitive due to the region's high-income workforce and limited land availability.

Price trends over the last six months indicate a steady recovery following a mid-year dip. After hitting a low of approximately $1.347 million in August, values have climbed consistently for four consecutive months, gaining over $30,000 in equity since the summer. This upward momentum suggests that despite higher year-over-year inventory, demand for Silicon Valley real estate remains resilient. The rental market reinforces this demand, with median rents rising 4.31% to $3,235, which may push some long-term renters to reconsider homeownership as a means of stabilizing their monthly housing costs.

Looking ahead, both buyers and sellers must adjust their expectations to a market that moves at a more deliberate pace. Homes are now spending an average of 47 days on the market, a full week longer than this time last year. For sellers, this means pricing strategy and property presentation are more critical than ever to stand out among the increased inventory. For buyers, the current window offers a rare combination of rising inventory and prices that are still below their 2024 peaks, providing a potential opportunity to enter the market before the momentum of the last quarter carries over into the 2026 spring season.