Is Now the Right Time to Buy in San Jose? New Report Reveals Market Insights (March 2024)

Beyond the Bidding Wars: Unveiling the Nuances of the San Jose Housing Market

Imagine this: a young couple, Sarah and Michael, brimming with excitement, set out to find their dream home in San Jose. They've heard the stories - bidding wars, soaring prices, a market that seems perpetually out of reach. Discouraged but determined, they begin their search using our Insider Home Buyer Tips, bracing themselves for the competitive landscape they've been warned about.

However, as they delve deeper, they discover a San Jose housing market brimming with more than just skyrocketing prices and bidding frenzy. While these aspects are undeniable, there's a hidden narrative waiting to be unraveled, one that sheds light on the complexities and potential opportunities within this dynamic market.

Based on data from Homeowner Experience Real Estate, the San Jose housing market is expected to see a shift in 2024 from the low inventory and high interest rate market of 2023. Our predictions expect a 6-8% increase in home values in 2024 but these results teeter on interest rates and the San Jose housing inventory.  While Altos Research shows the number of homes for sale has really increased nationwide, here in San Jose, the current number of homes for sale is lower than a year ago as shown in the below chart. 

San Jose Housing market inventory chart

The San Jose house price trend is definitely heading upward with the average price for sales closed in February 2024 of $1,682,100.

San Jose Housing Market Prices through February 2024

Here are some key trends you might not hear about everywhere:

  • The Interest Rate Rollercoaster: Remember the 2023 days of 7% interest rates? Since 2024, rates have dipped to 6.375% for Jumbo 30-year loans and then back up to just over 6.5%. Despite the volatile mortgage interest rates, local homebuyers still can afford to buy the average house price in San Jose California.The Federal Reserve is also anticipating potential reductions throughout the year, which could significantly impact the number of buyers and influence market activity, making it even more competitive. So should you wait to save money on your interest rate or buy now?
  • Tech Stocks Add Downpayment for Local Homebuyers: A significant source of cash for downpayment on local San Jose homes comes from tech stocks since most buyers work at one of the major Silicon Valley companies. To put this in perspective, employees of Nvidia have pocketed an 88% increase in their porfolio in the last 6 months alone!
  • Move Up, Move In: The influx of move-up buyers, those looking to upgrade from their current homes, could present an unexpected benefit for first-time buyers. As move-up buyers enter the market, it could free up more entry-level options, potentially easing competition for first-timers. The difference in the days on market for condos and townhomes is already significantly higher than for single family homes.

San Jose Condo Market inventory statistics for March 2024

  • Bidding Battles: A Simmering Simmer: While bidding wars are still a reality, the intensity might cool down with an increase in homes for sale. Also you can find an opportunity where a home seller has missed the mark on their asking price and the property does not end up with multiple offers. Overbidding should be expected to start around 5% above asking price, yet it is a significant difference from the 10-18% witnessed in 2021 and 2022 [Homeowner Experience]. The key is to plan your home search leaving room in your budget to pay over asking price so you have a fair chance at winning the property.
  • Not a Uniform Market: It's crucial to remember the Bay Area is diverse, and the housing market experiences variations across different locations. While some areas see significant price increases, others might see a more moderate increase or even a potential decline. Always work with a local real estate agent and understand the local market trends.

Watch our video with recent data and trends to answer the best time to buy or the best month to sell.

Best Time to Buy or Sell video thumbnail

While the San Jose housing market continues to evolve, understanding these nuances empowers you to navigate it with a more informed perspective. Remember, Sarah and Michael? With a deeper understanding of the market's complexities, they can approach their home search with a mix of cautious optimism and strategic planning, making their dream of homeownership in San Jose a possibility. Looking for more tips on how you also can navigate the local San Jose market armed with tools and a supportive team? Read through and take the steps outlined in the ultimate step by step guide to buying a home in San Jose.

Intriguing Insight into Almaden Valley's Housing Market

Data and our local home sale recent experience suggests a significant uptick in buyer competition between January and February 2024 in Almaden Valley. While the exact numbers might not be readily available, reports indicate a jump from around 4 buyers per house in January to upwards of 7 in February. This signifies an intensifying seller's market in the area, potentially leading to faster sales and higher closing prices. Read the latest about the Almaden Valley Trends on Homeowner Experience local market stats page and contact us for insight into the San Jose neighborhood that you are interested in.

 

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