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The spring housing market in San Jose’s 95125 zip code reached a new level of intensity in May 2026. As we head into summer, buyers and sellers alike are experiencing one of the fastest-moving markets we’ve seen this year.
With closed sales surging, homes spending less time on the market, and buyers continuing to compete aggressively, the latest market data paints a picture of a highly active real estate environment.
Sales Activity Hits a 2026 High
May marked the strongest month of the year for closed transactions, with 51 homes successfully changing hands. This represents a significant increase from April’s 41 closed sales and reflects strong buyer demand throughout the area.
The increase in completed sales suggests that well-priced homes continue to attract qualified buyers, even as affordability remains a challenge for many households.
Homes Are Selling at Lightning Speed
If you’ve been considering selling, timing may be on your side.
The average days on market dropped to just 15 days in May, down from 19 days in April. This is the fastest pace we’ve seen so far in 2026, indicating that buyers are moving quickly when the right property becomes available.
For sellers, this means properly prepared and strategically priced homes are often receiving strong interest within days of hitting the market.
Home Prices Remain Strong
After reaching an exceptional peak in April, average home prices saw a modest adjustment in May.
The average sales price settled at $2.10 million, compared to April’s $2.35 million average. While prices cooled slightly from the previous month’s record levels, values remain historically strong throughout the 95125 market.
Median list prices also adjusted modestly, signaling that sellers may be pricing more strategically to attract today’s buyers.
Buyers Continue to Compete
Even with slightly lower list prices, competition remains intense.
The average sales-price-to-list-price ratio increased to 103.8%, meaning buyers paid nearly 4% above asking price on average. This indicates that desirable homes continue to attract multiple offers and competitive bidding situations.
While buyers have become more selective, they are still willing to pay a premium for homes that are well-located, updated, and priced appropriately.
What This Means for Buyers
Today’s buyers need to be prepared before beginning their home search.
With homes moving quickly and competition remaining strong, having financing in place, understanding current market conditions, and working with a knowledgeable local agent can make all the difference.
Success in this market often comes down to preparation, timing, and a well-executed offer strategy.
What This Means for Sellers
The current market presents a strong opportunity for sellers.
Demand remains healthy, inventory continues to move, and buyers are actively competing for desirable properties. However, success still depends on thoughtful pricing, professional marketing, and presenting the home in its best possible light.
The days of simply putting a home on the market and expecting top dollar are behind us. Today’s most successful sellers are those who combine strong preparation with a strategic pricing plan.
Looking Ahead
The 95125 market continues to demonstrate resilience and strong buyer demand as we move into the summer season. While prices have normalized from April’s extraordinary highs, the combination of increased sales activity, low days on market, and continued buyer competition points to a healthy and active market.
Whether you’re considering buying, selling, or simply keeping an eye on local market trends, understanding the data is the key to making informed decisions.
Thinking about making a move in 95125? Let’s connect and create a strategy tailored to your goals.
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About the Author – Michelle Elliott
With over 20 years of experience navigating the fast-paced Silicon Valley market, I provide a strategic, results-driven approach to residential real estate. My career is built on a foundation of deep local expertise and a relentless commitment to my clients’ success, resulting in over $235 million in lifetime sales volume and a consistent ranking in the top 3% of agents in Santa Clara County and top 2% at Coldwell Banker. My expertise has been featured on KTVU Fox 2, Real Producers and the Willow Glen Resident. She is also the co-host of the San Jose Podcast “Say What You Want About Real Estate”
A Hyper-Local Expert with Global Reach
I specialize in San Jose, in the neighborhoods of Willow Glen (95125 & 95124) Cambrian Park and Almaden, Downtown San Jose/Japantown (95112) markets. As a certified Luxury Property Specialist with Coldwell Banker Realty, I combine high-end marketing strategies with granular neighborhood knowledge to help my clients achieve premium results.
The “Tiger” at the Negotiating Table
My clients have characterized me as a “tiger” at the negotiating table who remains “sweet and patient” with my clients throughout the process. I pride myself on being a fierce advocate for my buyers and sellers, ensuring the best possible terms in every transaction, and I strive to be the best Realtor in 95125! This balance, drive, and tenacity have earned me consistent 5-star ratings across Google, Zillow, Realtor.com, and Yelp.
Michelle Elliott
Michelle@michelleelliottrealtor.com
1712 Meridian Ave, Ste C, San Jose, CA
DRE 01777533
