Cambrian San Jose Real Estate Trends
Cambrian, an area of San Jose, CA, typically follows a traditional spring to fall sales cycle with peak sales in early summer (around May to July with 75+ sales) due to the push for the first day of school in mid-August. The sales then slow significantly down in November, December, and January (with a low of 25-30 closings in January).
Have higher interest rates in 2023 affected the normal market cycle? Read on to find out.
In the sections below, you will find a chart of the Cambrian house price trend (both 95124 and 95118 zip codes) and raw statistics for the current month. Stay in touch with our monthly market updates by signing up for our newsletter!
The San Jose Housing Market update page contains an indepth write-up on the overall South Bay housing market.
Cambrian Real Estate Trends - closed data through August 2023
What is the CURRENT average home price?
The average PRICE in August 2023 for Cambrian was $1,848,420. The average sale price to list price ratio came in at 106.9% of the asking price. The Cambrian average price peaked in April 2022 ($2,044,930), and then depreciated due to the quick rise of interest rates and decrease in the stock market. Comparing August 2020 at $1,411,350 average price (pandemic prices) to today’s prices, homeowners in Cambrian have seen an 31% increase in home values over the last 3 years. Check out the current market metric in the stats below.
Cambrian Housing Market Data - Closed August 2023
Below is a chart comparing the Cambrian housing inventory (yellow line) with the previous month's sales (green bar) and closed Cambrian housing market prices. Keep in mind the prices lag by 30 days since a typical escrow is 30 days long.
Plus...Follow your home's unique value like a pro each month!
The analysis of the real estate market trends data below includes the second quarter (Through June 2023) and is updated each quarter. Next update mid October 2023.
How has the Cambrian real estate market recently performed?
In all of 2017 Cambrian experienced extremely low inventory (see the yellow line for inventory in the graph below), and multiple offers. These multiple offers spurred a quick increase in home prices.
In late April of 2018, inventory shot back up to normal and the record high prices plus increasing interest rates had buyers waiting on the sidelines. With the number of sales decreasing earlier than typical in the year’s sales cycle, prices softened through the rest of 2018.
Record-low inventory returned in 2020 and 2021, while demand and closed sales were really strong. With low supply and high demand, prices again increased in 2020 and throughout 2021, recovering the price dip of late 2018 and adding to it. The 2021 peak price in October was 19% over the April 2018 peak (although the condo and townhome market has not recovered so well). The number of sales closed in 2021 was stronger than any recent years.
2022 started off with the lowest inventory on record yet, pushing buyers to pay on average 20% above the asking price to “win” a house. May 2022 had noticeable interest rate increases and a sharply declining stock market, forcing many buyers out of the price point to buy a home in many areas of San Jose. Due to this decrease in demand (and low Q3 sales to prove it), home prices adjusted back to the prices of 2021. Then in August, buyer interest sparked again with the new lower list prices and September closed sales showed an average of 102.8% over the asking price again. Q4 was slow in sales numbers in all of San Jose.
2023 started off slow with lower than normal sales numbers but the Spring market picked up with 40 sales closing in March 2023 after buyers felt some relief from the slight dip in interest rates. But interest continued to increase in 2023 putting pressure on home buyers' budgets. Surprisingly spring and early summer of 2023 had record low inventory, more typical for December and January rather than peak selling months. This record low inventory has not been able to satisfy the demand so sellers are experiencing a nice market in their favor.
Stay tuned with San Jose Housing monthly updates by watching my monthly San Jose Housing Market update videos or by signing up for the local San Jose Housing Newsletter.
Which direction are the Cambrian Real Estate Trends heading?
Days of Inventory (DOI) is a monthly metric I follow to understand the speed and direction of the market. As of June 2023, the DOI in Cambrian is at 11 days (lower than most of San Jose); a very strong sellers’ market. Hopefully more sellers will take advantage of the lower inventory and sell to help satisfy buyer demand for Cambrian.
With interest rates currently at almost 7% for July 2023, many buyers are looking at 7-year adjustable rate mortgages to make a home purchase more affordable on the monthly pocketbook. I expect prices to appreciate in Q3 2023 and possibly decrease slightly as the fall and winter months approach.
Hopefully, the immense equity gain over the past 10 years will encourage sellers to continue to supply the market with inventory, so buyers have options. The strong unemployment numbers help to keep up buyer demand.
This article is updated once a quarter (the next update is mid-October 2023 with data through the end of Sept 2023). To see more recent updates, take a look at the Cambrian market metrics below or watch my overall San Jose Market overview video.