San Jose Housing Market

By Nigel Hughes

The median home sale price in San Jose declined by 3.3% in January compared to the same time last year, while national prices rose by 1.3%.

San Jose home sale prices continue to soften

Home prices in San Jose fell by 3.3% in the year ending January 2026, extending the weakest year-over-year price appreciation since 2023. The median sale price in January was $1,402,500, the lowest since January 2024, continuing a reversal in price growth that began in December 2025.

San Jose townhome prices post steepest decline among property types

San Jose townhome prices have continued their decline since peaking in 2025. Prices for townhomes slipped -8.6% in the past 12 months to $1,074,000. At the same time, condo prices declined by 0.7% to $755,000. Meanwhile, prices for detached homes were unchanged over the same period at just under $1.7 million.

San Jose reported the weakest annual home price change among major California markets

San Jose is the weakest-performing market in California for price growth. Results among major California markets were mixed, with San Diego achieving the highest growth rate (1.7%), while Los Angeles and San Francisco were broadly flat.


Infographic comparing San Jose vs. U.S. sale price indicators. San Jose: $1,402,500 with –3.3% YoY (–$47,500). U.S.: $374,900 with +1.3% (+$4,900). Takeaway: San Jose remains the nation's highest‑priced metro even amid cooling.
San Jose’s median sale price of $1.4M slipped 3.3% year‑over‑year, ranking first nationally despite annual declines.


Bar chart of sale prices from 2018–2026. Prices climb toward $1.6–$1.8M peaks before stabilizing above $1.4M. Main takeaway: long‑term appreciation with recent stabilization.
San Jose prices remain elevated above $1.4M in the most recent year, continuing a multi‑year trend of high valuations.


Chart showing annual dollar increases/decreases from 2018–2026 ranging from +$300K to –$200K. Latest values are close to zero. Takeaway: volatility has eased significantly.
Annual price changes remain near zero after several years of large swings, signaling a cooling but stabilizing market.


Area chart showing percent change from 2018–2026, with highs near +30% and lows around –15%. Recent values hover near zero. Takeaway: dramatic growth cycles have cooled.
Annual price growth sits just above or below zero, reflecting a market shifting from rapid gains to stability.


Bar chart of January sale prices from 2018–2026, rising from around $1M into the $1.35–$1.45M band, ending at $1,402,500. Takeaway: elevated January pricing persists.
January home prices landed at $1,402,500, remaining firmly within the upper $1.3M to $1.4M range of recent years.


Chart shows January YoY change from 2018–2026, with early gains over +20% but recent readings near zero or slightly negative. Latest: –3.3%. Takeaway: growth momentum has softened.
January’s annual percent change dipped to –3.3%, continuing modest cooling after earlier double‑digit growth years.


Bar chart ranking metros by January median sale price. San Jose ($1,402,500) leads, followed by San Francisco ($1,372,500). Many large metros fall between $300K–$900K. Takeaway: San Jose tops national affordability rankings.
San Jose remains the most expensive major U.S. metro in January with a median price of $1,402,500.


Horizontal bar chart of YoY January changes across metros. Philadelphia leads at +8.6%; San Jose shows –3.3%. Takeaway: San Jose cooling contrasts with strength in several other markets.
San Jose’s –3.3% annual January price change places it among the lower‑performing metros, while others post gains up to 8.6%.


Infographic showing detached at $1,699,444 (0% growth), attached at $1,074,000 (–8.6% YoY), condos at $755,000 (–0.7%). Takeaway: stability in detached vs. weakness in other segments.
Detached homes hold near $1.7M with flat growth, while attached and condo segments show mild to moderate declines.


Bar chart comparing San Jose detached, attached, and condo sale prices: detached at $1,699,444, attached at $1,074,000, condo at $755,000. Annual change shows 0% for detached, +8.6% for attached, and –0.7% for condos. Main takeaway: detached prices remain resilient with notable attached‑home growth.
San Jose home prices held mostly steady most recently, with detached homes at $1.7M and condos dipping slightly while attached homes posted strong annual gains.


For questions and commentary about this report:

Nigel Hughes, Senior Director of Market Analytics at CoStar and Homes.com, based in San Francisco, is available for interviews to provide expert insights on this data and the broader residential real estate market.

Nigel Hughes

Senior Director of Market Analytics

Homes.com

nhughes@costar.com

Homes.com releases preliminary figures on housing trends on a monthly basis. Although these numbers may change slightly once all home sales are accounted for, they provide an early indication of home sale price appreciation in San Jose during January 2026.

Definition of Sale Prices

Median home price is the midpoint sale price of homes closed during each month. This data includes homes that are detached, attached, and condominiums. Detached homes are single-family units. Attached homes are townhomes, rowhouses, and duplexes. The condominium classification includes co-ops.

For most markets, geographical coverage consists of the Census-defined Core-Based Statistical Area (CBSA). Data for San Francisco, Los Angeles, Miami, and New York is at the Metropolitan Division level.

About the Homes.com Market Analytics Team

The Homes.com Market Analytics group is a team of experienced analysts embedded in nearly 30 markets across North America. These experts reside in and regularly visit the markets they cover, providing local expertise and a national perspective on all sectors of real estate: residential, office, industrial, retail, and multifamily.

About Homes.com Analytics Data

The Homes.com analytic data is compiled by the CoStar Analytics team, the largest and most experienced analytics team in the real estate industry. The team consists of over 50 economists, analysts, and data scientists, who collectively have more than 900 years of real estate experience and over 30 advanced degrees. Analysts on the team live in and around the markets they cover, enabling them to build deep local knowledge and unique insights.

The data set being used by the team is one of the most comprehensive and robust in the industry. It spans all 393 metropolitan markets, 542 micropolitan markets, and over 35,000 local neighborhoods in the U.S. The data set is sourced from almost 500 Multiple Listing Service (MLS) providers around the country, as well as public record data from each market, and is supplemented by proprietary data collected by CoStar's team of over 2,000 researchers. It includes a complete inventory of all homes in the U.S., including homes for sale, homes for rent, new construction homes, as well as sale comps and rent comps.

 

Writer
Nigel Hughes

Nigel Hughes is the Senior Director of Market Analytics at CoStar and Homes.com, where he leads analysis of commercial and residential real estate across the San Francisco Bay Area. He produces data-driven reports and news coverage on leasing, investment, construction, and property performance across all major asset classes, and tracks trends in home prices, rents, supply, and demand. With a degree in economics from Middlesex University and more than two decades of experience in real estate research and consulting in the United States, the United Kingdom, and Australia, he advises investors, developers, and corporate occupiers on market conditions, capital deployment, and portfolio strategy.

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