Median Home Price in San Jose Reaches $900K

May 13, 2015

California is one of the areas of the country where home prices are heating up the most, and in San Jose, the median price of an existing home reached a whopping $900,000 in the first quarter, according to a new report by the National Association of REALTORS®.

The median price in San Jose jumped 11.4 percent in the first quarter from a year earlier and is more than four times the U.S. median of $205,200, according to NAR. (Note: The median reflects a number where there are as many homes that cost more as those that cost less than that level.)

A booming labor market, driven by the technology sector, has led to the jump in home prices in the San Jose-Sunnyvale-Santa Clara, Calif., area. It saw the fastest percentage growth in employment among the largest metro areas in the U.S., with its employment climbing 5.5 percent over the last year — more than double the U.S. pace of 2.2 percent, according to U.S. Labor Department data. The median household income in San Jose is about $82,000 compared to $53,000 nationwide.

Other metro areas also are seeing rapid price growth, mostly driven by tight inventory, NAR reports. The number of metros that have seen double-digit price appreciation doubled in the first quarter to 51 from 24.

The following 10 metros had the highest median sales prices for single-family existing homes in the first quarter:

  1. San Jose-Sunnyvale-Santa Clara, Calif.: $900,000
  2. San Francisco-Oakland-Fremont, Calif.: $748,300
  3. Honolulu: $699,300
  4. Anaheim-Santa Ana-Irvine, Calif.: $685,700
  5. San Diego-Carlsbad-San Marcos, Calif.: $510,300
  6. New York-Wayne-White Plains, N.Y.-N.J.: $466,700
  7. Boulder, Colo.: $442,200
  8. Los Angeles-Long Beach-Santa Ana, Calif.: $434,700
  9. Naples-Marco Island, Fla.: $405,000
  10. Nassau-Suffolk, N.Y.: $404,200

Source: “The Median Cost of a House in San Jose Is $900,000,” MarketWatch (May 11, 2015)