Cambrian Real Estate Trends

Cambrian an area of San Jose, CA typically follows a traditional spring to fall sales cycle with peak sales in early summer (around May to July with 75+ sales) due to the push for the first day of school in mid-August and then slowing significantly down in November, December and January (with a low of 25-30 closings in January).

How has the Cambrian real estate market recently performed?

In all of 2017Cambrian experienced extremely low inventory (see yellow line for inventory in the graph below), and multiple offers. These multiple offers spurred a quick increase in home prices.

Cambrian Real Estate Market Trends Graph Dec 2021

In late April of 2018, inventory shot back up to normal and the record high prices plus increasing interest rates had buyers waiting on the sidelines. With the number of sales decreasing earlier than typical in the year’s sales cycle, prices softened through the rest of 2018.

Also, interesting to note, the low inventory returned in 2020 and 2021, possibly due to the pandemic but demand and closed sales were really strong. With low supply and high demand, prices again increased in 2020 and throughout 2021, recovering the price dip of late 2018 and adding to it. The 2021 peak price in October was 19% over the April 2018 peak (although the condo and townhome market has not recovered so well)

December 2021 closed sales units were slightly lower (43) than past Decembers. With strong sales all 2021, the year to date sales of 733 were much higher than previous years; compared to 2020 – 640, 2019 – 634.

What is the CURRENT average home price?

The average PRICE (orange line) in December 2021 for Cambrian was $1,616,560 with the average sale price to list price ratio at 115.1% of asking price. The Cambrian average price peaked in April 2018 ($1,456,070), and again in October 2021 ($1,733,170), a 19% increase. December sales values softened a bit from the October peak. Check out the current month’s data in the stats below.

Which direction is the Cambrian real estate market trending

Days of Inventory (DOI) is a monthly metric I follow to understand the speed and direction of the market. As of December 2021, the DOI in Cambrian is a record low of just 2 days; a very strong unprecedented sellers’ market. This inventory and demand imbalance continued throughout the fall/winter so hopefully new inventory in 2022 will help to satisfy the intense demand.

Until there is a significant increase in inventory, I expect prices to continue to appreciate due to the demand of young millennial buyers and continued historically low interest rates.

Hopefully the immense equity gain over the past 10 years will encourage sellers to continue to supply the market with inventory, so buyers have options. The strong unemployment numbers help to keep up the strong pending & closed sales.

This article is updated once a quarter (next update April 2022 with data through end of March). To see more recent updates take a look at the market metrics below or watch my overall San Jose Market overview video.

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