The San Jose, CA metro area housing market in February 2025 presents a dynamic landscape with notable shifts in various metrics. The Median Sales Price has reached $1,580,000, marking a significant year-over-year increase of 6.8%. This upward trend in sales prices is mirrored by the median Price Per Square Foot, which has risen by 6.0% to $928.07. These figures suggest a robust demand for housing in the area, despite some contrasting indicators.

Interestingly, the Median List Price has also increased, albeit at a slower pace, with a year-over-year growth of 3.3%, bringing it to $1,498,000. However, the Median List Price per square foot has remained relatively stable, showing no change from the previous year. This stability in list Price Per Square Foot could indicate a leveling off in seller expectations or a strategic pricing approach to attract buyers.

In terms of sales activity, the number of Homes Sold has slightly decreased by 1.1% year-over-year, totaling 752 homes. Despite this decline, the market shows strong forward momentum with Pending Sales surging by 50.9% to 1,180. This substantial increase in Pending Sales suggests a potential uptick in future closed transactions, reflecting buyer confidence and market engagement.

The supply side of the market has also experienced significant changes. New Listings have increased by 23.1% year-over-year, reaching 1,407, while inventory has grown by 34.3% to 1,394. The Months of Supply, a critical indicator of market balance, has risen by 50.0% to 1.90 months. This increase in supply metrics indicates a shift towards a more balanced market, potentially easing the competitive pressure on buyers.

Market dynamics are further highlighted by the average sale to list ratio, which has improved by 1.3% year-over-year to 106.5%. This suggests that homes are selling for more than their list prices, reinforcing the competitive nature of the market. Additionally, the percentage of Homes Sold above list price has increased by 3.2% to 67.7%, further emphasizing the strong demand.

Price adjustments are also a notable aspect of the current market. The percentage of Price Drops has increased by 2.6% to 15.9%, indicating that some sellers are adjusting their expectations to align with market realities. Meanwhile, the percentage of homes going off the market within two weeks has surged by 35.4% to 59.7%, highlighting the swift pace at which well-priced homes are being snapped up by eager buyers.

Overall, the San Jose housing market in February 2025 is characterized by rising prices, increased supply, and strong buyer activity. While the decrease in Homes Sold suggests some cooling, the significant rise in Pending Sales and inventory points to a market that is adjusting to new dynamics, with potential for continued growth and opportunity for both buyers and sellers.