San Jose Real Estate Market Report – August 2026
If you've been watching the San Jose market this summer, the August numbers are the first that really shift the narrative. The data from Santa Clara County confirms what a lot of buyers and sellers have started to sense: prices are cooling, but the market hasn't lost its pace.
The Headline Number
In May, the median sale price for San Jose single-family homes was $1,652,500. In June, it edged up to $1,668,000. In July, it inched higher again, to $1,670,500 which is a slow, steady climb. August broke that streak: the median dropped to $1,575,000, a 5.7% pullback from July and the first real decline we've tracked this year.
A single month doesn't necessarily signal a trend. But paired with a second number (average days on market) the picture gets more interesting, and more reassuring than it might first appear. Homes sat on the market for 20 days in both May and June. In July, that jumped to 27 days, the first real slowdown of the summer. In August, that number moved the other way: down to 24 days, a faster pace than July and close to May and June's rhythm.
Put those two trends together and you get a market that cooled on price without losing steam, homes are trading hands nearly as quickly as they were all summer, just at a lower number.
What Else Moved in August
Homes sold: 323 closed sales in San Jose in August, down from 350 in July (an 8% pullback), continuing summer's slower sales pace even as the market's speed (days on market) actually improved.
Median sale price: $1,575,000, down 5.7% from July's $1,670,500 which is the first month-over-month decline of the year.
Inventory: After three straight months of decline (640 → 554 → 544 from May through July), inventory ticked up slightly in August to 549 homes, a small but notable reversal.
Condos Are Telling the Same Story, Differently
San Jose's condo and townhome market moved even more dramatically on price. The median sale price fell to $700,000 in August, down 12.5% from July's $800,000. But price per square foot (a steadier read on value) barely budged: $611 in August versus $614 in July, continuing a gentle four-month decline from May's $646. That gap suggests August's price drop has more to do with which condos sold than any broad shift in value.
Days on market for condos also eased, dropping to 40 days in August from 43 in July, though still slower than May and June's 37-day pace. Sellers in this segment are still averaging full asking price (100%) for a fourth straight month, a sign of stability even as the median swings.
It's Not Just San Jose
This isn't a San Jose-specific story. Santa Clara County as a whole moved in the same direction on pace: countywide days on market for single-family homes improved to 25 in August, down from 27 in July, reversing a three-month climb from May's 19 days. And the percent of list price sellers received across the county actually ticked up to 103% in August, after sliding from 104% in May to 102% in July.
Whatever's driving San Jose's price pullback, it isn't a countywide loss of momentum, if anything, pace and pricing power firmed up slightly at the county level even as San Jose's median cooled.
What This Means for You
This is exactly the kind of moment where having a local Realtor in your corner actually matters, because a headline price drop and a market losing momentum are two very different things, and August was the former, not the latter.
If you're selling: Price to August's numbers, not July's. The good news is that well-priced homes are still moving quickly (24 days on average) and still closing right around asking (102%). A lower median doesn't mean buyers have pulled back, it means the mix of what's selling has shifted, and your pricing strategy needs to reflect that.
If you're buying: You picked a good month to have a bit more selection, inventory ticked up for the first time since spring. That said, the faster pace (down to 24 days) means well-priced homes still aren't sitting around, so be ready to move when you find the right one.
Either way, the right move depends on your specific situation, timeline, and the home or neighborhood you're looking at. I'm happy to pull the data for your street or your target neighborhood specifically, just reach out.
Frequently Asked Questions
What was the median home price in San Jose in August 2026?
The median sale price for single-family homes in San Jose was $1,575,000 in August 2026, down 5.7% from July's $1,670,500. The median for condos and townhomes was $700,000, down 12.5% from July's $800,000.
Is San Jose a buyer's or seller's market right now?
For single-family homes, still a seller's market, though slightly looser than July: roughly 1.7 months of supply (549 homes for sale against 323 monthly sales), well under the 5–6 months that typically signals a balanced market, with sellers averaging 102% of list price. Condos and townhomes sit around 3.6 months of supply, closer to balanced, with sellers still getting 100% of asking.
How long are homes taking to sell in San Jose?
Single-family homes averaged 24 days on market in August 2026, down from 27 in July. Condos and townhomes averaged 40 days, down from 43 in July.
Are home prices in San Jose going up or down?
Down, for now. Single-family median price fell 5.7% month-over-month, and condo median fell 12.5%. But price per square foot for condos barely moved (down just 0.5%, from $614 to $611), suggesting the swing reflects which homes sold rather than a broad drop in value.
Is now a good time to sell in San Jose?
Yes, with a caveat: pricing needs to reflect August's cooler median rather than July's numbers. The market's underlying pace actually improved (days on market dropped and the sale-to-list ratio held steady) so well-priced homes are still moving quickly. For condo and townhome sellers, price to the price-per-square-foot trend, not the median, since August's drop looks mix-driven rather than value-driven.
Data source: Santa Clara County MLS
Chloe Dertinger Realtor®, Connect California Homes | DRE #02282915
(408) 212-0732 | chloe@connectcahomes.com | www.chloedertinger.com
