San Jose's housing market is a California standout

"San Jose continues to operate under extreme supply constraints even as the broader California housing market normalizes. The metro carries just 1.1 months of inventory, compared with 2.3 months statewide, underscoring the region's sharply limited supply and persistent seller leverage. San Jose also maintains premium pricing. The median price per square foot sits at $939, or 129% above California's $409 median."

"Price reductions remain less common as well, with 24.9% of San Jose listings cutting prices vs. 36% statewide. Active inventory stands at 389 homes. Weekly absorption reached 92 homes, while just 57 new listings came to market, reinforcing the structural imbalance between supply and buyer demand. Homes spend a median of 35 days on market, half of California's 70-day median. The Market Action Index remains above the neutral threshold, signaling continued seller advantage even as statewide dynamics move closer to balance."

"Pricing power remains concentrated The median list price reached $1,668,888 in October, up 4.4% from $1,599,000 a year earlier. Meanwhile, 2.6% of active listings increased their asking prices, slightly above the statewide 2.2% rate. Relisted homes represent 11.3% of activity, close to California's 10.3%, signaling stable transaction completion in a tight market. The 1.1-month supply remains the defining constraint in San Jose."

San Jose's housing inventory is critically low at 1.1 months versus 2.3 months statewide, producing persistent seller leverage and concentrated pricing power. The median price per square foot is $939, 129% above the California median, and the median list price rose to $1,668,888 in October, up 4.4% year-over-year. Active inventory totals 389 homes; weekly absorption hit 92 while only 57 new listings arrived, and homes sell in a median of 35 days versus 70 statewide. Price reductions occur in 24.9% of listings compared with 36% statewide, 2.6% of actives increased asking prices, and relists are 11.3%. The Market Action Index remains above neutral, signaling continued seller advantage; tracking absorption and the 35-day DOM helps assess whether tight supply sustains firm pricing.

Read at www.housingwire.com