The Los Gatos real estate market trends are strongly in the seller’s favor in the more affordable price points, and more balanced, to the benefit of the buyer, in the luxury bracket of the market. Let’s take a quick view of the months of inventory and you’ll see what I mean.
The chart below comes from my Live in Los Gatos blog in an article titled “Los Gatos real estate market trends by price point and high school district.” It reflects the absorption rate for single family homes (99% houses but a few duet homes or attached houses – duet homes are not the same as duplexes, by the way). Homes offered at $3 million or less are selling in a flash. But check out the 8 homes listed at $3,000,000 to $3,499,999 and you’ll notice a big slow down. Homes over $5 million do not tend to sell quickly due to the limited number of buyers in that pricing tier, but even so, a 4 month inventory is considered a balanced market which means that it’s speedy quick for these luxury properties compared to normal.
The inventory shortage in Los Gatos
In the more affordable price points of Los Gatos 95030 & 95032 (“in town” as opposed to 95033 in the Santa Cruz or Los Gatos Mountains) there is a dire shortage of inventory. All of Santa Clara County is in the same boat, having extremely low inventory of homes for sale. Have a look:
From this chart you can see the current inventory is half what it was in 2013!
In the lower price points, it does not seem to matter which school district the home is in – if the basics are all there (good list price, professional photography, careful marketing with the usual pre-sale inspections, reasonable showing access), the homes are selling fairly quickly. In higher tiers, buyers care more whether the property is in this or that school area (see the linked article above for info on that.)
With low inventory usually comes low numbers of sales.
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