San Jose's real estate market showed a stark divide in late August, with 59 residential properties changing hands. While the city's average sale price reached $1.6 million, several condominium transactions occurred well below that mark.
The $640,000 Makati Circle outlier
The most significant outlier in recent San Jose activity was a 1,233-square-foot condominium located in the 5200 block of Makati Circle. sold for $640,000, this property represents a significant departure from the city's broader pricing trends. At just $519 per square foot, the Makati Circle unit is priced at less than half the citywide average of $1,144 per square foot, according to public records.
Built in 1985, the two-bedroom, two-bathroom condo closed on August 27, offering a glimpse into a more accessible tier of the local market. This transaction highlights how older, mid-sized condominium developments can provide a much lower entry point than the single-family homes that typpically drive the $1.6 million average.
The $1.6 million average vs. sub-$1 million deals
The disparity between the city's median-level transactions and its entry-level options is massive. As the Bay Area Home Report Bot reported, the 59 residential sales recorded for the week ending August 31 averaged $1.6 million per property. These transactions typically involved larger footprints, averaging 1,702 square feet with three bedrooms.
In contrast, the "best deals" identified in the report—those priced between $300,000 and $1,000,000—consist almost exclusively of condominiums or smaller single-family homes. For example, a property on Alum Rock Ave. sold for $790,000, and a condominium on Bautista Place reached the $1 million mark. this suggests that while the "average" San Jose resident is navigating a million-dollar-plus market,a secondary market for smaller, high-density housing remains active.
Comparing 1984 builds to 2019 Sunstone Drive units
The data reveals a clear distinction between value-driven older builds and more modern, higher-priced units. Older properties, such as the 1,260-square-foot condo on Colony Crest Drive built in 1984, sold for $750,000. Similarly,a unit on Foxhall Loop from 1984 fetched $810,000.
Newer construction commands a premum, even within the sub-million-dollar bracket. a 1,306-square-foot condominium on Sunstone Drive, built in 2019, sold for $776,000. While the price per square foot on Sunstone Drive ($594) was comparable to some older units, the age of the building and its three-bedroom configuration make it a distinct asset compared to the 1980s-era properties found on La Terrace Circle or Lake Hennessy Court.
The mystery of the sub-$1 million buyer
While the transaction data is clear, the identity and motivation of the buyers remain unknown. the report does not specify whether these sub-$1 million purchases, such as the $685,000 sale on La Terrace Circle, are being made by first-time homeowners looking for an entry point into Silicon Valley or by real estate investors building a rental portfolio.
Furthermore, it remains unverified if these lower-priced sales are driven by a surplus of older condominium inventory or a specific demand for smaller living spaces. Without knowing if these buyers are individuals or corporate entities, it is difficult to determine if this represents a sustainable path to homeownership in San Jose or merely a niche market for aging assets.
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