San Jose Real Estate Market Update: Why Homes Are $2,000/Month Cheaper Today

If you’ve been waiting for the right moment to buy a home in San Jose or the greater Bay Area, this might be it. The San Jose real estate market has shifted dramatically over the past six months, and today’s buyers are saving up to $2,000 per month compared to those who purchased earlier this year.

Here’s what’s happening and why now may be the best time to make your move.

📊 San Jose Housing Market Inventory

Right now, there are 942 active listings in San Jose. What’s unusual is that this number has stayed consistent in the mid-900s all year. Normally, after Labor Day, we see inventory decline as sellers pull back and fewer homes hit the market.

Pending sales are also steady at 454 homes, showing buyers are still hesitant. This pause in buyer activity has kept Bay Area homes for sale sitting on the market longer, giving current buyers more choices and leverage.

💰 Home Prices Down by $200,000

Back in March and April 2025, the Bay Area housing market was red hot. Buyers were in bidding wars, sellers were pushing prices higher, and homes were flying off the market.

But the market has since corrected. San Jose home prices are down roughly $200,000 compared to the spring frenzy. That’s a huge difference: about $1,200 less per month on the same mortgage.

This correction has created rare affordability in a region where price drops of this magnitude are uncommon.

📉 Interest Rates in the Mid-5s

On top of lower home prices, interest rates have improved. Today’s buyers are seeing rates in the mid-5% range, and some of our clients have locked in as low as 5% with the right banking relationship.

That rate change alone can shave $800–$900 off the monthly payment for the same loan amount.

When you combine price reductions with lower rates, you’re looking at a total savings of around $2,000 per month — on the exact same San Jose home.

🏡 What This Means for Bay Area Homebuyers

For those asking, “Is now a good time to buy a home in San Jose?” — the numbers speak for themselves:

• ✅ Lower home prices: down ~$200,000

• ✅ Lower interest rates: mid-5% or even 5% flat

• ✅ Lower monthly payments: ~$2,000 savings

• ✅ More inventory & options: 942 active listings

• ✅ Less buyer competition: fewer bidding wars

This is what I call a window of opportunity in the Bay Area housing market. Once buyers recognize that prices have hit resistance, demand will surge, and competition will return.

⚡ Final Thoughts: Don’t Wait for the Next Frenzy

If you were buying in March, you were paying more for the same home with a higher monthly payment. Today, you can get that same home for significantly less.

At Real Estate 38, we’ve guided more than 1,600 clients in San Jose and across Silicon Valley through markets just like this. The clients who act during these quieter moments are often the ones who walk away with the best deals.

📞 Ready to explore your options? Call me at 408-515-1613, and let’s look at how much more affordable your dream home is today.

Because in San Jose real estate, strategy and timing aren’t just important — they’re everything.

—
Zaid Hanna
CEO & Founder, Real Estate 38