San Jose Real Estate Market Update January 2018

SAN JOSE REAL ESTATE MARKET UPDATE VALUE RANGES JANUARY 2018

San Jose Real Estate Market Update January 2018

In this blog post, Pedro M Romero, Coldwell Banker The Professional Group describes the San Jose Real Estate Market Update for December 2017. As well as insights on major trends such as the number of homes sold, median price, days on market, list price to sales price ratios, months of inventory. starter, move up, & luxury homes.

In the San Jose real estate market, conditions continue to favor sellers, even as more houses become available compared to this time last year.

The 222 new listings in December 2017 represents an increase over December 2016 with 166 listings.

SAN JOSE REAL ESTATE MARKET UPDATE NEW LISTINGS JANUARY 2018

SAN JOSE REAL ESTATE MARKET UPDATE NEW LISTINGS JANUARY 2018

San Jose Real Estate Market Update Units Sold

The Multiple Listing Service reports that in December a total of 364 single family homes were sold in the San Jose area. This indicates a 14.35% percent decrease over sales in December in 2016 with 425 home sales.

SAN JOSE REAL ESTATE MARKET UPDATE Units Sold JANUARY 2018

SAN JOSE REAL ESTATE MARKET UPDATE Units Sold JANUARY 2018

San Jose Real Estate Market Update Months Of Inventory

If we look at the absorption rate which shows how fast all the homes currently on the market would sell if no other homes came up for sale, it shows that there are only .4 months of supply which is indicative of a very hot real estate market.

SAN JOSE REAL ESTATE MARKET UPDATE MONTHS OF INVENTORY JANUARY 2018

SAN JOSE REAL ESTATE MARKET UPDATE MONTHS OF INVENTORY JANUARY 2018

San Jose Real Estate Market Update Median Price

Prices in the San Jose real estate market continued to climb during that year-long period. The median price of a single-family home in the San Jose area increased 32.44% percent between $860,000 in December 2016 to $1,139,000 in December 2017.

SAN JOSE REAL ESTATE MARKET UPDATE Median Price JANUARY 2018

SAN JOSE REAL ESTATE MARKET UPDATE Median Price JANUARY 2018

San Jose Real Estate Market Update Dollar Volume Of Sales

The dollar volume of sales year over year increased 8.02 percent. In total, $436,046,780 worth of homes were sold in December 2017.

SAN JOSE REAL ESTATE MARKET UPDATE Value of solds JANUARY 2018

SAN JOSE REAL ESTATE MARKET UPDATE Value of solds JANUARY 2018

San Jose Real Estate Market Update Sales Trend

If we look at the trend, you’ll see that in December 2016 “Starter” home sales were well above “Luxury” & “Move Up” Homes, which caused the number of home sales to go up. In December 2017 “Luxury” & “Move Up” Home sales are well above “Starter”  home sales resulting in an increase of the median price, & dollar volume of sales.

SAN JOSE REAL ESTATE MARKET UPDATE VALUE RANGE SALES TREND JANUARY 2018

SAN JOSE REAL ESTATE MARKET UPDATE VALUE RANGE SALES TREND JANUARY 2018

San Jose Real Estate Market Update Days On Market

Homes spend an average of 18.1 days on the market in San Jose, which is a dramatic decrease from the same as in December 2016 with 30.8 days.

SAN JOSE REAL ESTATE MARKET UPDATE Average Days on Market JANUARY 2018

SAN JOSE REAL ESTATE MARKET UPDATE Average Days on Market JANUARY 2018

San Jose Real Estate Market Update Overbidding Percentage

85.99% percent of homes that sold, sold for their asking price or above. This reflects a 58.82% percent increase over the same time last year.

SAN JOSE REAL ESTATE MARKET UPDATE Homes that sold at 100% or more of last asking price JANUARY 2018.

SAN JOSE REAL ESTATE MARKET UPDATE Homes that sold at 100% or more of last asking price JANUARY 2018.

San Jose Real Estate Market Update Sold Price To List Price Ratio

Generally high prices, limited availability, and quick sales of those homes that come up for sale make the San Jose real estate market a favorable environment for Sellers.

With the average sales price to list price ratio of 109.75 percent, assuming the home is priced right, sellers can expect to sell their home for at least 9.75% above the list price.

At the same time buyers can expect to pay at least 9.75% more than a home’s list price.

SAN JOSE REAL ESTATE MARKET UPDATE Average Sold to Asked Ratio JANUARY 2018

SAN JOSE REAL ESTATE MARKET UPDATE Average Sold to Asked Ratio JANUARY 2018

Diving a little deeper into the San Jose Real Estate Market stats we come across Value Ranges. Value Ranges were invented by REality’s founder Leon d’Ancona in 1989 while working on his book “The Home Price Guide”. The formula proved that a “60%-25%-15%” breakdown is the right way to determine price value ranges in North America.

It works this way: We look at all home prices and divide them into the first 60% “starter” the next 25% “move-up” and the last 15% “luxury”. You will notice that usually, “luxury” represents only 15% of the units sold, but has 30% of the value in a given market.

Overall Value Ranges in San Jose

Our Value Ranges begin with “Starter” homes, they range from $0-$1,078,00 which account for 44.4% of the value in the real estate market. Next is our “Move Up” which range from $1,080-$1,448,000 they make up 29.5% of the value in the real estate market. And last is our “Luxury” which are between $1,450,000-$4,500,000 which accounts for 26.1% of the value of the real estate market in San Jose.

SAN JOSE REAL ESTATE MARKET UPDATE VALUE RANGES JANUARY 2018

SAN JOSE REAL ESTATE MARKET UPDATE VALUE RANGES JANUARY 2018

Below you’ll find a map showing the home sales in San Jose over the past 3 months broken down by “starter”, “move up” & “luxury” value ranges.

SAN JOSE REAL ESTATE MARKET UPDATE VALUE RANGE SALES MAP JANUARY 2018

SAN JOSE REAL ESTATE MARKET UPDATE VALUE RANGE SALES MAP JANUARY 2018

San Jose Real Estate Starter Value Range

Going deeper into the “Starter” homes the bottom ranges from $0-$869,620 and represents 52.9% of the value. The middle ranges from $870,000-$974,000 and makes up 27.3% of the value. Lastly, the top-level ranges from $975,000-$1,078,000 and accounts for 19.9% of the value in the “Starter Value Range”.

SAN JOSE REAL ESTATE MARKET UPDATE STARTER HOME VALUE RANGES JANUARY 2018

SAN JOSE REAL ESTATE MARKET UPDATE STARTER HOME VALUE RANGES JANUARY 2018

SAN JOSE REAL ESTATE MARKET UPDATE STARTER HOME SALES JANUARY 2018

SAN JOSE REAL ESTATE MARKET UPDATE STARTER HOME SALES JANUARY 2018

In December 2016 there were 312 “Starter” Home sales. Whereas in December 2017 there were 162 “Starter” Home sales.

SAN JOSE REAL ESTATE MARKET UPDATE STARTER HOME SALES UNITS JANUARY 2018

SAN JOSE REAL ESTATE MARKET UPDATE STARTER HOME SALES UNITS JANUARY 2018

Below you’ll see a map of “Starter” home sales separated by starter, middle & top value range.

SAN JOSE REAL ESTATE MARKET UPDATE STARTER HOME SALES MAP JANUARY 2018

SAN JOSE REAL ESTATE MARKET UPDATE STARTER HOME SALES MAP JANUARY 2018

San Jose Real Estate Move Up Value Range

The Move Up Value Range starts with homes between $1,080,000-$1,249,000 and represents 51.6% of the value. The middle ranges from $1,250,000-$1,349,998 and makes up 29.4% of the value. The top-level ranges from $1,350,000-$1,448,000 and accounts for 19% of the value in the “Move Up Value Range”.

SAN JOSE REAL ESTATE MARKET UPDATE MOVE UP HOME VALUE RANGES JANUARY 2018

SAN JOSE REAL ESTATE MARKET UPDATE MOVE UP HOME VALUE RANGES JANUARY 2018

SAN JOSE REAL ESTATE MARKET UPDATE MOVE UP HOME SALES JANUARY 2018

SAN JOSE REAL ESTATE MARKET UPDATE MOVE UP HOME SALES JANUARY 2018

In December 2016 there were 71 “Move Up” Home sales. Whereas in December 2017 there were 117 “Move Up” Home sales.

SAN JOSE REAL ESTATE MARKET UPDATE MOVE UP HOME SALES UNITS JANUARY 2018

SAN JOSE REAL ESTATE MARKET UPDATE MOVE UP HOME SALES UNITS JANUARY 2018

Below you’ll see a map of “Move Up” home sales separated by starter, middle & top value range.

SAN JOSE REAL ESTATE MARKET UPDATE MOVE UP HOME SALES MAP JANUARY 2018

SAN JOSE REAL ESTATE MARKET UPDATE MOVE UP HOME SALES MAP JANUARY 2018

San Jose Real Estate Luxury Value Range

The Luxury Value Range starts with homes between $1,550,000-$1,880,000 and represents 49.9% of the value. The middle ranges from $1,900,000-$2,180,000 and makes up 26% of the value. Lastly, the top-level ranges between $2,200,000-$4,257,500 and accounts for 24.1% of the value in the “Luxury Value Range”.

SAN JOSE REAL ESTATE MARKET UPDATE LUXURY HOME VALUE RANGES JANUARY 2018

SAN JOSE REAL ESTATE MARKET UPDATE LUXURY HOME VALUE RANGES JANUARY 2018

SAN JOSE REAL ESTATE MARKET UPDATE LUXURY HOME SALES JANUARY 2018

SAN JOSE REAL ESTATE MARKET UPDATE LUXURY HOME SALES JANUARY 2018

In December 2016 there were 42 “Luxury” Home sales. Whereas in December 2017 there were 85 “Luxury” Home sales.

SAN JOSE REAL ESTATE MARKET UPDATES LUXURY HOME SALES UNITS JANUARY 2018

SAN JOSE REAL ESTATE MARKET UPDATES LUXURY HOME SALES UNITS JANUARY 2018

Below you’ll see a map of “Luxury” home sales separated by starter, middle & top value range.

SAN JOSE REAL ESTATE MARKET UPDATE LUXURY HOME SALES MAP JANUARY 2018

SAN JOSE REAL ESTATE MARKET UPDATE LUXURY HOME SALES MAP JANUARY 2018

Coldwell Banker The Professional Group provides expert real estate services to residential buyers and sellers in San Jose and surrounding communities.

To get a free home value evaluation or to discuss the sale of your home call us at (408) 482-5064, there’s no obligation to list your home when you call.

For additional information about the overall real estate market such as price predictions, interest rates, consumer confidence etc. click on the link below.

Real Estate With Pedro Romero

Glossary of Terms

Average Days On Market (DOM): The average marketing time it has taken properties to sell.

Median Price: Sale Price that is midway between the least expensive and most expensive properties. Half of the properties sold for more than the median price and half the properties sold for less than the median price.

Months Of Inventory: The amount of time it would take to sell all current listings at the current sales pace if no new listings became available. The number of active OR pending(ie: on market) listings for the month / Number of closed sales for the month.

Sales Price to List Price Ratio: The percentage of the list price that buyers ultimately paid for the property.