Is Now a Good Time to Buy a House in San Jose? Here’s What You Need to Know

San Jose’s housing market—long known for steep prices—has shown signs of seasonal cooling and rate stabilization in mid-2025. Buyers ask: Is now the right moment to commit to a home purchase? In this guide, we’ll examine:

• Price Trends: median vs. average home prices year-over-year

• Inventory Signals: pending vs. active listings and days on market

• Interest-Rate Outlook: current 30-year rates and forecasts

• Neighborhood Spotlights: Evergreen (95123), Almaden, Silver Creek, Cupertino

• Financial Tools: down-payment and buyer programs, ADU income possibilities

By the end, you’ll know whether to pull the trigger now or wait.

1. Price Trends & Market Signals

1.1 Median vs. Average Home Prices

• Citywide Median: $1.45 million (down ~1.5% Y-O-Y)

• Citywide Average: $1.60 million (up ~2% Y-O-Y, pulled by luxury sales)

1.2 Year-Over-Year Change

• Evergreen (95123): Median $1.48M (–1%), Average $1.52M (+1%)

• Almaden Valley: Median $1.55M (0%), Average $1.60M (+2%)

• Silver Creek Condos: Median $1.27M (–0.5%), Average $1.30M (+0.5%)

• Cupertino Pockets: Median $2.10M (+1%), Average $2.25M (+3%)

Takeaway: Luxury pockets hold gains while mid-market segments see modest seasonal pullback.

2. Inventory & Demand Dynamics

2.1 Active vs. Pending Listings

• Active Listings: 1,250 homes (+8% since spring)

• Pending Listings: 980 homes (–3%), indicating contracts still strong.

2.2 Days on Market (DOM)

• Evergreen: 13 days (vs. 11 in spring)

• Almaden: 11 days

• Silver Creek: 12 days

• Cupertino: 9 days

Insight: Slightly longer DOM offers buyers breathing room, but rapid sales in top areas maintain pressure.

3. Interest Rates & Financing Climate

3.1 Current Rate Environment

• 30-Year Fixed: ~5.25%

• 15-Year Fixed: ~4.75%

3.2 Forecasts & Strategies

• Rate Cuts Possible: Late 2025 may see 0.25% easing, prompting spring 2026 buying surge.

• Lock Timing: Watch Fed signals; lock when volatility dips to secure favorable terms.

Advice: If rates under 5.5% meet your budget, locking now hedges against future increases.

4. Neighborhood Spotlights

4.1 Evergreen (95123)

• Median Price: $1.48M

• School Premium: Jackson Elementary 9.2/10—adds 3–5% value.

• ADU Opportunity: 300+ permits in 2024; rent $2,500/month.

4.2 Almaden Valley

• Median Price: $1.55M

• Club Lifestyle: Country club access drives steady demand.

• Inventory Tight: Few new listings—price support strong.

4.3 Silver Creek (95138)

• Median Condo: $1.27M

• HOA Fees: $700–$750/month; amenities include pool, clubhouse.

• Transit Upgrades: BART shuttle planned—value boost expected.

4.4 Cupertino Corridors

• Median Price: $2.10M

• Top Schools: District rating 9.5/10; tech proximity high.

• Ultra-Premium: Short DOM signals fierce competition.

Action: Match your financial profile to neighborhood trends—choose mid-market Evergreen/Cambrian or premium Cupertino based on goals.

5. Financial Assistance & ADU Income

5.1 Buyer Programs

• CalHFA Dream For All: Up to 3% down-payment help.

• County Grants: $10K–$30K for first-time buyer San Jose.

• VA & Physician Loans: 0% down for eligible professions.

5.2 ADU Income Potential

• Cost to Build: $150K–$200K; rent $2,500/month yields ~3.5% return.

• Value Add: Homes with legalized ADUs sell $50K–$100K higher.

Strategy: Leverage programs and ADU to improve purchase power and cash flow.

6. Pros & Cons: Should You Buy Now?

Pros

• Seasonal Price Dips: 1–2% off spring peaks.

• Rate Stabilization: Under 5.5% rates affordable compared to 2022 highs.

• Strong Fundamentals: Tech jobs, low supply, ADU streamlining ahead.

Cons

• High Entry Costs: Median down ($290K) plus $50K+ closing costs.

• Carrying Costs: Taxes and maintenance push monthly outflow north of $10K.

• Continued Competition: Hot pockets like Cupertino see sub-10-day DOM.

Decision Framework: If you plan to hold 5+ years and qualify for assistance, buying locks in equity; if your budget is tight, consider renting another 6–12 months.

Conclusion

So, is it a good time to buy a house in San Jose? With modest median price dips, manageable interest rates, and robust neighborhood fundamentals—especially in Evergreen and Almaden—the window is open for well-qualified buyers. Yet significant down payments, closing costs, and high carrying expenses require careful planning. By leveraging buyer programs, timing rate locks, and exploring ADU income, you can make a confident move.

At Block Change Real Estate, we provide the hyperlocal data and personalized guidance to help you decide whether now—or later—is the ideal time to buy in Silicon Valley’s dynamic market. Let’s chart your path to homeownership today.