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If you’re thinking about buying a home in San Jose’s 95112 ZIP code, including Japantown, the July numbers are worth a closer look.
The market moved faster than it did in June, more properties sold, and the average sale price increased slightly.
But there’s another part of the story that buyers may find especially interesting:
Homes sold for an average of 99% of their asking price in July.
Does that mean every home is suddenly negotiable? Definitely not. But it does show why buyers shouldn’t automatically assume they need to offer above asking just because a property is in a competitive San Jose market.
Let’s look at what changed.
Average Sale Prices Increased Slightly
The average sale price increased from $1.09 million in June to $1.12 million in July.
That’s an increase of about $30,000, or approximately 2.8%.
At the same time, the median list price decreased from $793,000 to $778,000.
Those two numbers might seem contradictory, but there’s an important reason to be careful when comparing them.
The average sale price can be influenced by the types of properties that happened to close during the month. A few higher-priced sales, for example, can pull the average upward.
And because these statistics combine different types of properties, ZIP-code-wide averages don’t necessarily tell you what an individual home gained or lost in value.
For buyers, that’s why I recommend focusing on recent comparable sales for the type of property you’re actually considering rather than relying on the overall average.
Homes Sold Slightly Below Asking on Average
Here’s one of the more interesting changes from June to July.
In June, homes sold for an average of 101.8% of their list price.
In July, that dropped to 99%.
In other words, the average July sale closed slightly below the property’s asking price.
For buyers, that’s encouraging—but don’t interpret it as a guaranteed discount.
Some homes may still receive multiple offers and sell above asking. Others may have price reductions or give buyers more room to negotiate.
The strategy really depends on the individual property.
Before deciding what to offer, look at things like the home’s condition, recent comparable sales, how long it has been listed, any previous price changes, current competing inventory, and whether other offers are on the table.
The asking price is only one piece of the puzzle.
Homes Sold Faster in July
Here’s where July really changed.
Homes spent an average of 23 days on the market, compared with 38 days in June.
That’s 15 fewer days.
So while buyers may have seen more flexibility around asking prices, they didn’t necessarily have more time to make a decision.
That’s an important combination to understand.
A home doesn’t have to sell above asking to be competitive.
If you’re interested in a property, make sure your financing is ready, review the available disclosures carefully, and understand the comparable sales so you’re prepared to make an informed decision when the right home comes along.
More Properties Sold
There were also considerably more completed sales in July.
June: 17 properties sold
July: 25 properties sold
That’s eight additional transactions, or roughly a 47% month-over-month increase.
That’s a noticeable jump, although I’d be cautious about calling it a long-term trend based on one month.
Monthly sales totals can fluctuate for all kinds of reasons, including inventory, timing, interest rates, and which transactions happen to close before the end of the month.
Still, it tells us that there was more transaction activity in July than in June.
What Does This Mean for Buyers?
July’s numbers tell a pretty interesting story.
Homes were selling faster and more transactions were closing—but the average sale-to-list-price ratio actually fell below 100%.
That’s a great example of why you can’t describe a housing market with just one statistic.
For buyers, it means don’t assume you know the competition before looking at the specific property.
A new listing that’s well priced may require a very different approach from a home that’s been available for several weeks.
Instead of automatically asking, “How much over asking do I need to offer?” I prefer a different question:
“What does the data tell us this home is worth, and what offer makes sense for my goals?”
That’s a much better place to start.
What Does This Mean for Sellers?
July also offers an important lesson for sellers.
Homes sold faster than they did in June, but the average sale-to-list-price ratio decreased.
That makes accurate pricing and strong preparation especially important.
Rather than choosing a price based on a ZIP-code median or assuming buyers will automatically bid above asking, look closely at recent comparable sales, current competition, property condition, and how similar homes are performing.
The goal isn’t simply to get your home on the market.
It’s to position it correctly for the market you’re actually selling in.
The Bottom Line
The July 2026 numbers for 95112 and Japantown show a market with several things happening at once.
The average sale price increased from $1.09 million to $1.12 million. Homes sold faster, with average days on market dropping from 38 to 23 days. The number of completed sales increased from 17 to 25.
At the same time, the average sale-to-list-price ratio declined from 101.8% to 99%.
For buyers, that’s a reminder that a fast-moving market doesn’t automatically mean every home requires an above-asking offer.
If you’re considering buying in Japantown or elsewhere in 95112, let’s look beyond the ZIP-code averages and dig into the numbers for the specific type of home, price range, and location you’re considering.
Because market statistics can tell you what’s happening broadly.
The numbers surrounding the home you actually want to buy are what should help shape your offer.
Market statistics above are based on the June and July 2026 figures provided and combine single-family homes, townhomes, and condominiums within ZIP code 95112. Japantown represents only part of 95112, so ZIP-code-wide statistics should not be interpreted as applying specifically to every Japantown property. Average and median figures can also be affected by the mix of properties sold or listed during each period.
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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
