San Jose’s Housing Market Is A California Standout

San Jose continues to operate under extreme supply constraints even as the broader California housing market normalizes. The metro carries just 1.1 months of inventory, compared with 2.3 months statewide, underscoring the region’s sharply limited supply and persistent seller leverage.

San Jose also maintains premium pricing. The median price per square foot sits at $939, or 129% above California’s $409 median. Price reductions remain less common as well, with 24.9% of San Jose listings cutting prices vs. 36% statewide.

Supply constraints drive market velocity

Active inventory stands at 389 homes. Weekly absorption reached 92 homes, while just 57 new listings came to market, reinforcing the structural imbalance between supply and buyer demand.

Homes spend a median of 35 days on market, half of California’s 70-day median. The Market Action Index remains above the neutral threshold, signaling continued seller advantage even as statewide dynamics move closer to balance.

Pricing power remains concentrated

The median list price reached $1,668,888 in October, up 4.4% from $1,599,000 a year earlier. Meanwhile, 2.6% of active listings increased their asking prices, slightly above the statewide 2.2% rate. Relisted homes represent 11.3% of activity, close to California’s 10.3%, signaling stable transaction completion in a tight market.

What to watch

The 1.1-month supply remains the defining constraint in San Jose. Use the 35-day median days on market as a benchmark for setting speed-to-offer expectations. The $939 per square foot pricing benchmark, second highest in the nation, helps frame valuation discussions in a premium-priced market.

Tracking buyer activity through absorption can help determine whether tight supply continues to support firm pricing even as other California markets move toward balance.

HousingWire used HW Data to source this story. To see trends in your market, generate a local housing report. Enterprise users can license market data at scale through HW Data.