May frequently competes with April for the peak month for real estate. Where the market is now is a huge indicator for the rest of the year in the San Jose real estate market!
April and May often compete for being the peak month for the real estate market. Lets take a look at what has been going on in the San Jose real estate market to we are better able to anticipate what might be ahead for the rest of 2023.
Inventory Drops Year Over Year
The San Jose real estate market saw a 44% decrease in inventory when compared to the same time last year.
Interestingly, the San Jose real estate market currently only has 0.9 months worth of inventory on hand. If we were only looking at that statistic, we would assume we are in a strong seller’s market. Market balance is usually considered to be 4.5-5.5 months of inventory in our area. Given that, it becomes clear that it would take a very minor increase in buyer activity to flip this market strongly toward sellers.
New Listings Down.
New listings are down compared to the same time last year – so fewer sellers are willing to put their home on the market. With a 30% drop in new listings year over year – and a drop in the number of homes sold, San Jose added just 133 homes to the market.
The San Jose real estate market saw a drop of 25% of homes sold when comparing to the same time last year.
This month, the number of homes that went into a contract for sale declined by 13% when compared to the same time last year. That gave us 584 sellers that accepted an offer on their home.
Sellers initial list price for their homes had a mild increase in May compared to the same time in 2022. Overall, the average original list price in the San Jose real estate market was up only 0.4% compared to the same time last year.
Actual sales prices decreased by 9% over the year. Remember, this is likely the peak of the year, so it is likely only downhill for this number from here.
Percent Of List Price.
Sellers have been seeing their homes sell for 104.6% of asking price – down from 111.8% at the same time last year.
Days On Market.
It is taking 67% longer for home to sell in this month than at the same time last year. That comes to 18 days this year and just 11 days during the same month last year.
Source: All data is extracted from the MLS system for Santa Clara County – mlslisting.com