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Late Summer Brings Strong Momentum to the Housing Market
As summer came to a close, the local housing market showed plenty of strength heading into the fall season. Comparing August and September 2025, buyers remained active, more homes closed escrow, and average sale prices climbed significantly—even as sellers adjusted their pricing strategies.
Home Prices Moved Higher
One of the biggest changes between August and September was the increase in average sales prices.
The average home sold for $2.25 million in September, up from $1.91 million in August—a nearly 18% increase. That’s a strong indication that buyers continued to compete for desirable homes, particularly those that were well-prepared and priced appropriately.
Sellers Adjusted Their Pricing Strategy
Interestingly, while homes sold for more on average, the median list price actually declined from $1.75 million in August to $1.52 million in September.
This doesn’t necessarily mean home values dropped. Instead, it suggests many sellers took a more strategic approach to pricing, positioning their homes to attract greater buyer interest and encourage multiple offers.
Buyers Continued to Pay Near Asking Price
The market remained highly competitive, although bidding activity softened just slightly.
Homes sold for an average of 100.8% of their list price in September, compared with 101.2% in August. Buyers were still paying at or just above asking price, showing that demand remained healthy even as the market began its seasonal transition.
More Homes Changed Hands
September also saw an increase in closed sales, with 34 homes sold, compared to 29 in August.
An increase in completed transactions is often a positive sign, indicating buyers remained confident and willing to move forward despite changing market conditions.
Homes Took Just a Little Longer to Sell
The average time on market increased modestly from 19 days in August to 22 days in September.
Even with that slight increase, homes were still selling in just over three weeks on average—a pace that reflects a balanced but active market.
What This Means Moving Into Fall
September’s numbers paint the picture of a market that remained resilient as summer ended. Higher average sale prices, more closed transactions, and homes continuing to sell at or near asking price all point to steady buyer demand.
For sellers, it’s a reminder that thoughtful pricing and strong presentation continue to attract serious buyers. For buyers, preparation remains key. Well-priced homes are still moving quickly, and opportunities can disappear fast.
As we head deeper into the fall market, it will be interesting to see whether this momentum continues or if seasonal trends begin to slow activity. Either way, staying informed about local market conditions is the best way to make confident real estate decisions.
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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
