Housing in San Jose remains attractive to buyers, albeit expensive
Silicon Valley is the technological heart of the US and the world. Not surprisingly, many professionals come here to realise their ideas or find interesting jobs. The constant influx of new residents has contributed to a steady rise in house prices in San Jose over the years. In 2025, however, the area’s real estate market is undergoing some changes.
According to Redfin, 372 homes were for sale in San Jose in February 2025. This is down 6% from the same period in 2024. The drop in transaction volume may indicate that the market has cooled somewhat. However, home values continue to rise. In February, the median home price was US$1.4 million, a growth of 12% compared to 2024. This figure is also 2.39 times the national average housing price.
Review the features of the San Jose housing market
To understand trends, it is essential to look at the property market as a whole. On average, a property in the San Jose market stays on the market for 11 days. After that, a buyer is found and the transaction is completed. Previously, this figure was 10 days. Although the difference is small, this trend could indicate an increase in supply. At the same time, it could indicate that buyers have become more selective and are not in a hurry to complete a transaction.
The main trends in the San Jose housing market can be characterised by the following factors:
– high demand;
– limited supply;
– intense migration with a constant flow of new arrivals and departures;
– high mortgage rates, which have an impact on transaction volume.
Interest rates play an important role in the development of the sector. In March 2025, the average rate for a 30-year mortgage was around 6.7%. Banks also offer a 15-year loan at 5.9%.
As a result of rising interest rates, the overall cost of a home grows, making it less affordable for a number of consumers. This, in turn, affects demand and leads to a cooling of the market.
Analysts believe that mortgage rates will remain at current levels in the near future, but that their rise cannot be ruled out. As a result, San Jose’s housing affordability problem is likely to persist.
One positive factor for the local market is the stability of the technology sector. Demand for IT professionals remains strong, and the number of new start-ups is increasing. These trends are boosting professionals’ confidence in the future, contributing to higher demand for housing despite high mortgage rates.
Experts say the San Jose market is showing signs of stabilising after a period of rapid growth. However, it is too early to talk about price declines. Property in the region remains attractive, supporting its value.