San Jose Real Estate Market Update July 2018

In this blog post, Pedro M Romero from Coldwell Banker The Professional Group describes the San Jose Real Estate Market Update for July 2018. 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 685 new listings in June 2018 represents an increase over June 2017 with 545 listings.

Units Sold

The Multiple Listing Service reports that in June a total of 545 single family homes were sold in the San Jose area. This indicates a 13.90% percent decrease over sales in June in 2017 with 633 home sales.

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 1.5 months of supply which is indicative of a very hot real estate market.

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 22.61% percent between $995,000 in June 2017 to $1,220,000 in June 2018.

Dollar Volume Of Sales

The dollar volume of sales year over year increased 4.07 percent. In total, $720,028,472 worth of homes were sold in June 2018

Value Range Sales Trend

If we look at the trend, you’ll see that in June 2017 “Starter” home sales were well above “Luxury” Home sales, which caused the number of home sales to go up. In June 2018 “Luxury” & “Move Up” Home sales are well above “Starter” home sales resulting in an increase of the median price, & dollar volume of sales.

Average Days On Market

Homes spend an average of 14.3 days on the market in San Jose, which is a dramatic decrease from the same as in June 2017 with 19.1 days.

Overbidding Percentage

88.07% percent of homes that sold, sold for their asking price or above. This reflects a 7.01% percent increase over the same time last year.

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 108.79 percent, assuming the home is priced right, sellers can expect to sell their home for at least 8.79% above the list price.

At the same time, buyers can expect to pay at least 8.79% more than a home’s list price.

San Jose Real Estate Market Update Value Range June 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-$1,199,00 which account for 44.1% of the value in the real estate market. Next is our “Move Up” which range from $1,200,00-$1,598,000 they make up 29.1% of the value in the real estate market. And last is our “Luxury” which are between $1,600,000-$5,500,000 which accounts for 26% of the value of the real estate market in San Jose.

Below you’ll find a map showing the home sales in Evergreen San Jose over the past 13 months broken down by “starter”, “move up” & “luxury” value ranges.

San Jose Real Estate Starter Value Range

Going deeper into the “Starter” homes the bottom ranges from $0-$949,000 and represents 51.8% of the value. The middle ranges from $950,000-$1,072,000 and makes up 24.6% of the value. Lastly, the top-level ranges from $1,075,000-$1,199,000 and accounts for 23.6% of the value in the “Starter Value Range”.

In June 2017 there were 423 “Starter” Home sales. Whereas in June 2018 there were 259 “Starter” Home sales.

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

View all of the Starter Homes in San Jose.

San Jose Real Estate Move Up Value Range

The Move Up Value Range starts with homes between $1,150,000-$1,299,988 and represents 52.6% of the value. The middle ranges from $1,200,000-$1,399,999 and makes up 61.8% of the value. The top-level ranges from $1,400,000-$1,598,00 and accounts for 38.8% of the value in the “Move Up Value Range”.

In June 2017 there were 145 “Move Up” Home sales. Whereas in June 2018 there were 166 “Move Up” Home sales.

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

View all of the Move Up Homes in San Jose.

San Jose Real Estate Luxury Value Range

The Luxury Value Range starts with homes between $1,600,000-$1,895,000 and represents 49.3% of the value. The middle ranges from $1,900,000-$2,320,000 and makes up 29.8% of the value. Lastly, the top-level ranges between $2,325,000-$5,500,000 and accounts for 20.9% of the value in the “Luxury Value Range”.

In June 2017 there were 65 “Luxury” Home sales. Whereas in June 2018 there were 120 “Luxury” Home sales.

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

View all of the Luxury Homes in San Jose.

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.

Dollar Volume Of Sales: The total dollar volume of home sales broken down per month.

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.