San Jose Market Update: Are Price Cuts a Buying Opportunity or a Warning Sign?

Every week I’m asked the same question:
“Homes are sitting longer and I’m seeing price cuts… is this the right time to buy?”

If you're thinking about buying or selling in San Jose, this market update will give you clarity so you can make the smartest move — backed by data, not headlines.

Inventory Is Dropping… Again

As of this week, we have 890 active listings in San Jose, dipping below the 900 mark once again.
At the same time, we have 450 pending sales, which has been consistent throughout the entire year.

Compare that to the same time last year, when active inventory was closer to 780 homes.
Even though the market feels “slow,” inventory is still tighter than most people realize — and tight inventory creates upward pressure on prices.

Why Are Buyers Hesitant?

The hesitation has nothing to do with job loss or affordability. Ironically, buyers today have:

✔ Higher down payments
✔ Stronger savings
✔ More financial readiness than ever

So why are they pausing?

• Tariffs

• Global tension

• H-1B uncertainty

• Fear that prices may dip further

It’s emotional — not financial.

We’ve Seen This Exact Pattern Before

The last time San Jose saw -5% year-over-year decline was when interest rates jumped from 3% to 6%.
For nearly 10 straight years, we never saw a drop that large — until late 2022.

And what happened right after?

✅ Early 2023 surged
✅ Buyers re-entered
✅ Prices climbed fast

We are seeing the same pattern in 2025: small short-term pullback, followed by improving conditions.

Well-Priced Homes Are Still Selling

Despite buyer hesitation, the strong homes are getting attention.
When a property is:

✔ Priced properly
✔ Presented well
✔ Professionally staged

…it is still selling with 3–4 offers.
Not 10–15 offers like the frenzy days, but still very competitive.

That tells us serious buyers are active — they’re just selective.

Are We Entering the Next Buying Window?

Here’s what the data shows:

📉 Inventory is dropping
📉 Interest rates are easing
📈 Demand is sitting on the sidelines, waiting to jump back in

And history shows us… once buyers feel confident again, they enter the market quickly — and aggressively.

No one has a crystal ball, but the trend is repeating itself.

What Should Buyers and Sellers Do Now?

If you're buying, this could be the best time to secure:

✔ Less competition
✔ Better terms
✔ Lower overall purchase price

If you're selling, timing will be everything. Presenting your home properly still generates strong offers — and I can show you how.

Let’s Look at Your Numbers

Whether you’re thinking about buying or selling, the smartest decisions come from data, not emotion.
I’ll walk you through:

✔ Market timing
✔ Price strategy
✔ What to expect based on your home and neighborhood

📲 Call or text me directly at (408) 515-1613
📩 Or visit re38.com/contact to schedule a consultation.