Willow Glen has long been the bellwether of the greater San José residential market — a neighborhood where desirability rarely wavers, but affordability increasingly does. The spring 2026 data, now fully compiled from the last quarter's MLS filings, tells a more nuanced story than the headline numbers suggest.
Median sale prices across the 95125 zip code settled at $1.08M in May, a 2.4% dip from the February peak of $1.11M. In isolation, that number sounds modest. But when layered against inventory figures — currently at 2.1 months of supply, up from 1.3 months in Q4 2025 — a structural shift becomes apparent.
"The buyers who stepped back during the bidding war era are now returning with pre-approvals in hand. They're not desperate — they're patient, and they have options."
— Sarah Romero, Senior Market Analyst
Three recent closes illuminate the range of outcomes buyers are navigating this quarter. At 2847 Willow Glen Dr, a 3bd/2ba listed at $1.08M closed at ask after 11 days — unusual restraint for a market that routinely sees 12–18% over-ask. Meanwhile, 1203 Shasta Ave (2bd/1ba, $898K) drew three offers but closed at list after an inspection credit. The outlier was 88 Naglee Ave in Naglee Park: a 4bd/3.5ba that commanded $1.34M, $60K over ask, within 72 hours.
The Rose Garden and Almaden Valley corridors are exhibiting similar but lagged dynamics. Inventory in those submarkets still trails Willow Glen by roughly three weeks — suggesting the recalibration is moving outward from the core, as it typically does in structural corrections versus sentiment-driven dips.