San Jose’s housing market is characterized by low inventory and a strong position for sellers in early 2026. The median sale price stands at $1,298,714, reflecting a 7.23% decrease year-over-year, but homes are selling quickly—averaging just 49 days on the market—and for an average of 101.07% of the asking price.
The current conditions present opportunities for sellers to maximize returns and attract competitive offers. In January 2026, there were 462 houses sold in San Jose, marking a 21.96% decrease from the same month last year. Inventory remains tight with only 0.72 months of supply and just 331 homes available as of January, down 19.07% year-over-year.
Forecasts indicate gradual stabilization for the San Jose housing market throughout the year, with home prices expected to rise between two and four percent as mortgage rates ease and inventory improves. Affordability is reportedly improving as wage growth outpaces home price appreciation, while strong homeowner equity supports price stability.
Experts do not anticipate a market crash in San Jose during 2026. The area continues to show fundamental strengths such as sustained buyer demand, high homeowner equity levels, and stricter lending standards compared to pre-2008 conditions.
Seller control remains evident: nearly half (44.71%) of homes sold above asking price in January—though this is down from last year’s figure—and houses with price reductions increased slightly from 34.04% to 35.58%. These trends suggest that sellers continue to command the market.
