California is known for many things, including beautiful coastline, amazing peaks and parks, wine country, and plenty of sunshine. But there’s another thing that the Golden State is known for – high housing prices. While we usually think of San Francisco, Los Angeles, or even San Diego first when luxury real estate comes up, it’s another city – San Jose – that may be leading the state in that department.
In fact, San Jose was rated as one of the hottest (and most expensive) places to live, both for home buyers and renters, in the entire nation this year. Thanks to a booming tech industry in Silicon Valley and affordability concerns in San Francisco to the north, San Jose has quietly become the largest city in Northern California, with more than one million residents.
Let’s take a look at some key facts and stats about the housing market in San Jose, CA, both for home buyers and sellers and renters. Please note that we researched this information with a variety of credible sources and aggregated their findings and opinions to paint the clearest picture of the San Jose housing market at this time.
Home values in San Jose, California:
The average median value for a single-family, residential home in San Jose is now $1,263,500.
If we add in all residential property types, the estimated value is now $1,076,677 in San Jose.
Home sales in San Jose, California:
The median listing price for all residential properties in San Jose is now $984,000 (although these numbers climb month-to-month, so it’s likely much higher.
But the median sale price is currently $1,045,400, which leads us to the fact that 83.2 properties sell for above listing price in San Jose!
That percentage of homes that sell higher than asking price again leads the nation, dwarfing the second to third-ranked cities for that metric, San Francisco (76.1 percentage) and Oakland (75.2 percent), respectively.
Across the 174 markets, 23.9% of homes sold for more than what sellers asked for, compared to 22.3% last March.
San Jose’s lightning-fast real estate market:
Not only has San Jose been the hottest real estate market this past year, but it also ranks as the third-fastest market for the speed of home sales (out of 174 markets surveyed).
In fact, the average home that goes up for sale in the city and metro area goes into contract after only nine days!
Of course, that’s significantly lower than the national average of 43 Days On Market (DOM) for a home to sell.
Home appreciation in San Jose, California:
According to national real estate websites, real estate values in San Jose have risen by 22.4 percent all the way up to 32.3 percent over the last year.
That latter appreciation rate would firmly rank San Jose as the number one fastest growing city for home values in the entire nation!
Renting in San Jose:
If you thought home prices were sky-high in San Jose, wait until you see the rental prices! In fact, renters find little relief from the price crunch by renting an apartment, condo, or house in San Jose.
Right now, the median rental price in the greater San Jose area is $3,300, with an astronomical $3,500 median rent in the San Jose metro area.
Amazingly, the average small studio apartment rents for $2,660 per month in San Jose, and the priciest rental listing in a luxury condominium building recently went for $6,950 per month!
Other notable home sale statistics for San Jose:
Thanks to the meteoric real estate prices, the median price per square foot for listings in San Jose area is a whopping $621, or $655 in San Jose city.
Not only are prices being driven up by high demand and technology sector incomes, but San Jose is suffering a severe housing shortage. In fact, in March of 2018, there were less than one thousand homes for sale in all of San Jose (907 to be exact), which was down an astounding 41.5 percent from the previous March!
Forecasting the San Jose housing market through this year and beyond:
Of course, it’s impossible to accurately predict exactly what any real estate market will do in the future. However, based on San Jose’s current housing shortage, ramped up demand, and uber-valuable price appreciation, it’s one of the simplest markets to forecast confidently in the entire country.
Therefore, numerous experts and national real estate websites predict that homes and property in San Jose will appreciate by about 10.1 percent from the rest of 2018 and into spring of 2019 – a steady benchmark, although a drop from its current robust pace that’s impossible to sustain.
However, no matter what the national or even California markets do in 2018, 2019, and beyond, San Jose is unlikely to see a significant drop in prices.
One indicator that speaks to that is the number of foreclosures in any real estate market. But San Jose has a minuscule 0.4 foreclosure rate (0.4 homes – or less than half a home – out of every 10,000 will foreclose!). For reference, the national foreclosure rate is now 1.6, or 400 percent higher than that in San Jose.
The hottest San Jose neighborhoods:
Here are the ten hottest San Jose neighborhoods for home sales and values in 2018:
10. Rex Manor, San Jose
Median sale price: $1.5 million
Percentage of homes sold above asking price: 83.9
9. Blacow, Fremont (San Jose metro area)
Median sale price: $1 million
Percentage of homes sold above asking price: 91.7
8. Sunnyside, San Francisco, California
Median sale price: $1.3 million
Percentage of homes sold above asking price: 89.5
7. Lakewood, Sunnyvale (San Jose metro area)
Median sale price: $1.2 million
Percentage of homes sold above asking price: 92.3
6. Sunnyvale West, Sunnyvale (San Jose metro area)
Median sale price: $2 million
Percentage of homes sold above asking price: 91.3
5. West Santa Clara, Santa Clara (San Jose metro area)
Median sale price: $1.2 million
Percentage of homes sold above asking price: 90.3
4. Ortega, Sunnyvale (San Jose metro area)
Median sale price: $1.9 million
Percentage of homes sold above asking price: 100
3. White Oak, San Jose
Median sale price: $1 million
Percentage of homes sold above asking price: 66.7
2. Cambrian, San Jose
Median sale price: $1.2 million
Percentage of homes sold above asking price: 100
1. Bucknall, San Jose
Median sale price: $1.6 million
Percentage of homes sold above asking price: 100
Given that the housing prices are this high, you need to achieve the best credit rating to get the loans with lowest interest rates, which will save you thousands of dollars in the long run. You can speak with one of our credit specialists in San Jose or learn more about the credit repair process by reading our website bluewatercredit.com
