Willow Glen of San Jose, CA follows a traditional spring to fall sales cycle with peak sales in early summer (around June or July with 60+ sales) and then slowing significantly down in November, December and January (with a low of 20-30 closings in January).
Willow Glen Real Estate Market Trends
How has the Willow Glen real estate market recently performed?
With the extremely low inventory experienced in Willow Glen in all of 2017 and early 2018 (see yellow line for inventory in the graph below), Willow Glen experienced multiple offers. These multiple offers spurred a quick increase in home prices.
In late summer of 2018, these 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 is the uniquely low inventory from December 2016 to May 2018 where the typical trend reversed with more sales than inventory at a given time. This unusual occurrence showed how unique and active the market was. This same phenomenon of a low inventory, high sales market once again showed up in the later part of 2020.
2020 closed sales in Willow Glen were 14% higher than 2019 (with 76 more closed sales in 2020). Prices once again increased in 2020 due to the normal inventory and higher number of sales. The year over year increase in Median price was 16% (comparing December 2020 to December 2019).
What is the CURRENT average price?
The average PRICE (orange line) in December 2020 for Willow Glen was $1,731,810 with the average sale price to list price ratio at 102.7% of asking price. Compared to the Willow Glen market peak of April 2018 ($1,765,470), the market today is slightly down. The March 2020 and October 2020 average prices did exceed the 2018 peak. Check out the current month’s data in the stats below.
Which direction is the Willow Glen 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 2020, the DOI in Willow Glen is down to 13 days, but this sellers’ market is likely going to slow a bit with increase inventory in early 2021. How much will Prop 19 affect the inventory? Only time will tell.
Until there is a significant increase in inventory though, I expect prices to continue to appreciate due to the demand 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 unknown affect of the COVID-19 induced unemployment numbers, will play out in the upcoming months, but I am hopeful due to the seasonally strong pending sales.
This article is updated once a quarter (next update April 2021 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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