San Jose Housing Market - Are prices going down? (August 2026)

San Jose, CA - Housing Market: July 2025 vs. July 2026

Every July, I like to pull the numbers and see what the San Jose market is actually telling us. Not the headlines. The real data, straight from closed sales. Here is what changed over the last twelve months.

Fewer homes sold, but prices held their ground.

San Jose closed 334 single family home sales this July, down from 376 in July 2025. That is an 11% drop in sales volume. Fewer transactions usually spooks people. It should not. The average close price actually rose slightly, from $1,768,979 to $1,795,376, a gain of about 1.5%. Fewer buyers are closing deals, but the ones who are closing are still paying strong prices.

Homes are taking a bit longer to sell.

Average days on market moved from 22 to 27. That is five extra days, roughly a 23% increase. It is not a dramatic shift, but it tells us buyers are not rushing the way they were a year ago. They are asking more questions, waiting for the right house, and negotiating with a little more confidence.

Buyers are getting more space for their money.

Here is the number I find most interesting. Price per square foot dropped from $1,024 to $976, down almost 5%. At the same time, the average home sold grew from 1,795 square feet to 1,882 square feet. Buyers this July walked away with bigger homes at a lower cost per square foot than buyers did last July.

Total dollar volume is down.

With fewer sales, total closed volume fell from $665.1 million to $599.7 million, a drop of just under 10%. This is the clearest sign that the market has cooled from last summer's pace, even while individual home prices have stayed resilient.

What this means if you are selling

Your home still has real value in this market. Pricing it accurately and presenting it well matters more now than it did a year ago, since buyers are taking more time and comparing more carefully.

What this means if you are buying

You have a little more room to breathe. Homes are staying on the market longer, and you are getting more square footage for your dollar than buyers did last summer. That is real leverage if you use it.

The market is speaking. This July, it said: slower, steadier, and still standing strong on price. Are you listening?

Have questions about what this means for your specific neighborhood or situation? Reach out anytime. I am always happy to talk through the numbers with you.

Charm Hartland Realty World Homes & Estates 408-712-3932 | Charm@HartlandTeam.com | www.hartlandteam.com DRE #01216487