Is the San Jose Housing Market Cooling Down? What Buyers and Sellers Need to Know

Quick Summary

San Jose home prices are holding steady at $1.46M, largely flat year-over-year
List prices dropped 5% year-over-year, and price cuts are up 18% since last year
Inventory remains tight, with most homes still selling in under 60 days
Multiple-offer situations have cooled — down from 74% of homes last year to 64% this year
Bottom line: the bidding-war frenzy is fading, but sellers still hold the advantage

Is San Jose Still a Seller's Market in 2026?

Yes, but the edge is softening. Home prices are holding at $1.46M and most homes are still selling in under 60 days thanks to tight inventory, but list prices have dropped 5% year-over-year and multiple-offer situations have fallen from 74% to 64% of sales — a real shift, even if it's not a full reversal.

What Should Buyers and Sellers Do Right Now?

If you're buying: the frenzy hasn't disappeared, but the odds are shifting slightly in your favor. With multiple-offer situations down 10 points from last year, you have a somewhat better shot at negotiating — asking for concessions, requesting repairs, or avoiding an all-out bidding war. That said, with inventory still tight and homes moving in under 60 days, you'll still need to move quickly and come in prepared once you find the right property.

If you're selling: pricing accuracy matters more than it did a year ago. List prices are down 5% year-over-year and price cuts are up 18%, which tells us some sellers are still testing the market with prices that are too aggressive. Homes priced realistically from day one are the ones avoiding those cuts and still selling in under 60 days. This isn't a market where you can overprice and expect buyers to chase you — but it's also not a market where you need to panic-price to compete.

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Full Transcript

Michelle Elliott | Coldwell Banker Realty | CalRE# 01777533 Top 1.5% Realtor Nationwide | 20+ Years in San Jose & Willow Glen

📲 Reach out to Michelle with any real estate questions or to discuss your next move.