Willow Glen Real Estate Market Trends

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).

How has the Willow Glen real estate market recently performed?

With the extremely low housing inventory experienced in Willow Glen in all of 2017 and early 2018 (see yellow line for inventory in the graph below), homes for sale in Willow Glen experienced multiple offers. These multiple offers spurred a quick increase in home prices.

Willow Glen Real Estate Market Trends, Willow Glen Real Estate Market Trends

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 and continued through Q1 2021.

March 2021 closed home sales in Willow Glen were 41% higher than March 2020. Prices continue to increase due to the high demand and record low inventory.  The year over year increase in Median price was 6.3% (comparing March 2021 to March 2020). Interesting to note in the chart above is that March in Willow Glen tends to be at or near the peak price for the year

What is the CURRENT average price?

The average home PRICE (orange line) in March 2021 for Willow Glen was $1,895,870 with the average sale price to list price ratio at 108.9% of asking price. Willow Glen market average price peaked in April 2018 ($1,765,470), again in March 2020 ($1,807,940) and today a new record level. Check out the current month’s data in the stats below.

Which direction is 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 March 2021, the DOI in Willow Glen is down to 12 days, but this sellers’ market is likely going to slow a bit with increase in inventory likely coming in April, May and June. How much will Prop 19 affect the inventory?  Only time will tell.

Until there is a significant increase in housing 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 updateJuly 2021 with data through end of June).  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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