Is Now a Good Time to Buy a House in San Jose? A 2025 Expert Breakdown

Buying a home in San Jose is a major decision — and with interest rates shifting, inventory changing, and tech-sector headlines everywhere, it’s normal to wonder if right now is actually a good time to buy.

The truth is: there is no one-size-fits-all answer. But there is a clear, data-backed way to determine whether waiting or buying now puts you in a better position in the San Jose housing market.

In this guide, I’ll break down exactly what I tell my clients every single day, using real San Jose market insights, local neighborhood data, and 17+ years of on-the-ground experience.

Zaid’s Expert Take

For the past 17+ years, I’ve helped more than 1,600 families buy and sell across San Jose. One thing I can tell you with certainty:
Our market does not behave like the national market.

San Jose is driven by:

• Tech employment

• Extremely low housing supply

• School district demand

• Buyer income variability (W-2 vs RSU vs bonuses)

• Neighborhood-specific micro-trends (Almaden ≠ Cambrian ≠ Willow Glen)

When someone asks me, “Is now a good time to buy?”, I always look at their goals, their timeline, their affordability, and their desired neighborhood.

If you’re seriously considering buying a home in San Jose, understanding timing and strategy is absolutely critical.

What the Data Says About Buying Right Now

1. Inventory Is Still Historically Low

Even when inventory rises slightly, it’s nowhere near what a balanced market should have.
Low inventory keeps prices stable and prevents major price declines.

2. Interest Rates Are Stabilizing

Most buyers refinance later anyway. Understanding mortgage rates and affordability
is more important than waiting for the “perfect rate.”

3. Price Drops Are Not Market Crashes

When you see price reductions, they’re usually:

• homes priced too high

• homes with condition issues

• homes in lower-demand pockets

Meanwhile, turnkey homes in top school districts continue to sell quickly.

4. Buyer Activity Surges When Rates Dip

A rate drop of even 0.25% often brings more competition.
Buying before that surge gives you:

• lower purchase prices

• better negotiation leverage

• fewer bidding wars

Real Scenarios (Based on Current Market Trends)

Scenario A — First-Time Buyer in Cambrian

Competition is softer mid-winter to early spring.
If affordability fits, buying now may give you more leverage and fewer competing offers — especially in neighborhoods like Cambrian.

Scenario B — Move-Up Buyer in Almaden

You may benefit from buying first if your current home is in a high-demand school district and will sell quickly.

Scenario C — Investor Looking at Blossom Valley

Certain pockets show strong rent-to-purchase ratios.
Buying before summer (when rents rise) may maximize cash flow.

Should You Wait? Or Buy Now?

Here’s the simplest framework I use:

✔ If you find a home you like, that you can afford, in a neighborhood you want, buying now is usually smarter.

You lock in today’s price, avoid competition, and refinance later if rates drop.

✔ If every $100 matters in your monthly payment, waiting for a small rate dip may help.

But remember — a lower rate often causes higher home prices.
Waiting does not always equal savings.

If you’re unsure what the next steps look like, here’s a full breakdown of the home buying process.

What You Should Do Next

If you're unsure whether the timing is right, we can look at:

• Your numbers

• Your goals

• Your preferred neighborhoods

• Current rates

• Upcoming inventory

• Competition cycles

This will give you a clear yes/no answer — personalized to you.

If you want tailored advice, feel free to contact me.

📞 Ready to Talk About Your Situation?

Schedule a no-pressure home buying or selling consultation.
Let’s review your goals, timing, and numbers so you can make a confident decision based on real San Jose data.

Zaid Hanna
408-515-1613
www.re38.com