Facebook
X
Pinterest
Copy Link
Why Home Prices Can Rise Even When Asking Prices Are Falling
If you’ve been keeping an eye on the San Jose housing market, you may have noticed something that seems confusing at first.
How can home values be rising if asking prices are actually dropping?
The answer is simple: the list price isn’t always the price a seller expects to receive. In today’s competitive market, it’s often a marketing strategy.
The Numbers Tell an Interesting Story
In June 2026, the median list price for homes in San Jose’s 95125 ZIP code dropped by 14%, making it appear that the market was cooling.
But that’s not what actually happened.
Instead of paying less, buyers ended up paying more. The average sales price climbed 11% to $2.38 million, and most homes sold for more than their asking price. Homes also moved quickly, spending an average of just 19 days on the market.
So what explains the difference?
The Strategy Behind Lower List Prices
Many sellers in competitive markets intentionally price their homes below what they believe the property is worth.
Why?
Because a lower asking price attracts more attention online, brings in more showings, and encourages multiple offers. When several buyers compete for the same home, the final sales price often climbs well above the original list price.
It’s a strategy that’s been common throughout Silicon Valley for years, especially in highly desirable neighborhoods like Willow Glen.
What Buyers Need to Know
If you’re shopping for a home in 95125, it’s important to understand that the asking price is often just the starting point—not the final price.
A home listed at $1.8 million may ultimately sell for hundreds of thousands more if multiple buyers compete for it.
That’s why it’s so important to understand recent comparable sales, have a clear budget, and work with an agent who knows the local market. Being prepared before you fall in love with a home can make all the difference.
The Bottom Line
Lower asking prices don’t always mean home values are falling.
In many cases, they’re simply part of a pricing strategy designed to generate maximum interest and create competition among buyers.
The June 2026 data from San Jose’s 95125 ZIP code is a perfect example. While list prices declined, demand remained strong, homes sold quickly, and buyers continued paying above asking.
If you’re thinking about buying or selling in Willow Glen or anywhere in San Jose, understanding the strategy behind the numbers can help you make more informed decisions—and avoid being surprised when the final sales price tells a very different story.
GET YOUR FREE HOME SELLING BOOK
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
