Facebook
X
Pinterest
Copy Link
It’s one of the questions I hear most often from clients:
“Is San Jose finally becoming a buyer’s market?”
The short answer is not quite—but buyers definitely have more opportunities than they did a year or two ago.
After several years of intense competition, lightning-fast sales, and multiple-offer bidding wars, the market is beginning to feel a little more balanced. Sellers still have the advantage in many neighborhoods, but buyers are finding more inventory, fewer bidding wars, and a bit more room to negotiate.
The key is remembering that San Jose isn’t one market—it’s dozens of neighborhood markets, and each one tells a different story.
What Makes a Buyer’s Market?
There are a few key indicators Realtors watch when measuring market conditions:
- Housing inventory – More homes on the market generally gives buyers more choices and negotiating power.
- Days on Market – Homes that sell quickly usually signal strong demand, while longer selling times often favor buyers.
- Sale-to-List Price Ratio – When homes consistently sell above asking price, sellers have the upper hand. When they sell below asking, buyers gain leverage.
Looking at those numbers together helps paint a much clearer picture than headlines alone.
Where the San Jose Market Stands Today
Overall, San Jose is still considered a seller’s market, but it’s noticeably less competitive than it was during the peak years of 2021 and 2022.
Here’s what we’re seeing across the city:
- Inventory has increased, giving buyers more homes to choose from than they’ve had in quite some time.
- Homes are still selling quickly, but they’re not disappearing overnight like they once were.
- Many properties continue to sell above asking price, although bidding wars aren’t as intense as they were a year ago.
- More sellers are reducing their prices after hitting the market, especially if they started too high.
In other words, buyers finally have a little breathing room.
Every Neighborhood Is Different
One of the biggest mistakes buyers and sellers make is assuming every neighborhood is performing the same way.
That’s simply not the case.
Neighborhoods like Almaden Valley, Willow Glen, and Cambrian continue to attract strong demand. Well-prepared homes in these areas often receive multiple offers and sell quickly.
Other parts of San Jose, particularly in more price-sensitive markets, are seeing longer marketing times and more opportunities for buyers to negotiate.
That’s why local market knowledge matters. The citywide statistics are helpful, but they don’t always reflect what’s happening in the neighborhood you’re buying or selling in.
Why Has the Market Changed?
Several factors are contributing to today’s more balanced environment.
Higher mortgage rates have made buyers more selective, while ongoing economic uncertainty has encouraged some homeowners to price more conservatively.
At the same time, inventory has slowly increased, giving buyers more options than they’ve had in recent years.
The result is a healthier market—one where buyers have more time to make decisions, but quality homes are still attracting plenty of interest.
What This Means for Buyers
If you’ve been waiting for the “perfect” buyer’s market, you may be waiting a while.
San Jose remains one of the strongest real estate markets in the country, and desirable neighborhoods continue to see healthy competition.
The good news is that buyers have more leverage than they did a year ago. There may be opportunities to negotiate on homes that have been sitting on the market longer, and you’re less likely to feel pressured into writing an offer within hours of a listing going live.
Having a knowledgeable local agent can help you identify which neighborhoods still require aggressive offers—and where there’s more room to negotiate.
What This Means for Sellers
For sellers, today’s market is still very favorable—but pricing has become more important than ever.
The strategy of pricing high and expecting buyers to bid even higher doesn’t work as consistently as it did during the pandemic boom.
Today’s buyers are well-informed and quick to recognize value. Homes that are priced competitively, professionally marketed, and move-in ready continue to sell quickly and often attract multiple offers.
Overpriced homes, however, are much more likely to sit on the market and require price reductions.
Bottom Line
So, is San Jose a buyer’s market?
Not yet.
It’s still a seller’s market overall—but it’s a much more balanced one than we’ve seen in recent years.
Buyers have more choices, a little more negotiating power, and less competition than they experienced during the market frenzy. Sellers, meanwhile, can still achieve excellent results by pricing strategically and preparing their homes to stand out.
The biggest takeaway is this: real estate is local. What’s happening in Willow Glen may be very different from what’s happening in Evergreen, Downtown San Jose, or Almaden Valley.
If you’re wondering what the market looks like in your specific neighborhood—or what your home might be worth—I’d be happy to provide a personalized market analysis and help you understand exactly what’s happening where you live.
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
