Los Gatos real estate market trends

How's the Los Gatos real estate market? How are Los Gatos Real Estate Market Trends?The Los Gatos real estate market trends are running cool to cold right now for most segments of the market (zip code, price point, school district). However, for properties listed at $2 million or less, it is red hot.   Let’s take a quick view of the months of inventory and you’ll see what I mean.

Right now there are 13 homes for sale in 95030 and 95032 offered at 2 million or less, and in the last month there have been 12 closed sales of similar homes. That’s 1.08 months of inventory for houses listed at $2 million or less – a very nice, speedy pace of homes being absorbed by buyers.

There are 27 homes for sale at more than $2 million and just 10 sales from that group in the last 30 days.  Here the months of inventory is a different story – 27 divided by 10 = 2.7 months of inventory for houses offered at more than $2 million.

If we did more tweaking, we might find that the transition point is a little higher up – and the specific location or school district might have an impact, too. But by the $3 million point, the market is uniformly cool in Los Gatos.  And we’d likely find that real estate in the upper echelons take a very, very long time to sell – perhaps more than a year.

Sereno Group just put out some market data by zip code.  This is helpful but of course sometimes it’s not the zip code, but the school district, which impacts the value or the market conditions the most. Disclaimers aside, there’s some good “big picture” info to digest. What I find most helpful is the fact that it’s year-over-year information to get a sense of the major Los Gatos real estate market trends.

The first look into the market includes the median home price and the average days on the market for Los Gatos 95030.  (The median sale price refers to the point where half the homes sell for more than a particular amount, and half sell for less.) BTW, C/T stands for condo/townhouse.

 

2017-01-20 Los Gatos 95030 Median Home Price and Average Days on Market
As you can see, the numbers of homes selling has been rising each year since 2008 for houses and since 2011 for condos and townhomes. During that same timeframe, overall homes have been selling faster and faster, though there’s been a little uptick since 2015.  These seem to point to a calming market. I find it interesting that condos and townhomes had a tougher time selling during the recession, but an easier time selling now.

Next, the same information but for Los Gatos 95032.

 

2017-01-20 Los Gatos 95032 Median Home Price and Average Days on Market

The patterns here are fairly similar,though perhaps not as dramatic as for 95030.

 

Two more helpful Los Gatos real estate market charts – the Los Gatos combined volume of sales (single family as well as condominiums and townhouses), first 95030 then 95032:

 

2017-01-20 Los Gatos 95030 Combined Volume and Sales

2017-01-20 95032 Combined Volume and Sales

 

Sales have been declining since 2014 in 95030 and 2015 in 95032 along with the available inventory of homes for sale (not shown). Whe The stagger in timing probably reflects the cooling trend as starting at the more expensive price points as 95030 is usually more costly than 95032.

When this cooling trend happens, a few things take place.  It can be a harder time to sell, which we have certainly seen here in Los Gatos.  The steep appreciation seen starting in 2012 through the present time has likely worn buyers out – their incomes aren’t keeping pace.

It’s also very tough on people in the real estate industry, such as people at title insurance companies, inspectors, appraisers, and of course real estate sales people and brokerages.  For some Realtors, the loss of sales volume is partially offset by rising prices, if they are able to make sales in this climate.

General Comment: What is selling fastest in Los Gatos?

Turnkey houses in areas with no issues and no major repairs or updating needed are selling fast. This is even more true if they are nicely remodeled and priced appropriately or a little under market value. Examples of issues include being too close to high voltage power lines or other negative elements.  And, of course, they are in the lower pricing tiers of appx $2 million or less (or a little more, but under $3 million).

The highest priced homes over $3 – $5 million will sell better if they are in the Los Gatos Union School District.  It is especially challenging to sell a very high end home in east Los Gatos with Leigh High, both because at that price point most home buyers want Los Gatos High, but also it’s a further commute to most employment centers closer to Palo Alto.

School districts aside, many homes are having trouble selling, though – some of these properties have not been updated, have been over-improved for the immediate neighborhood, or were overpriced.  Often the over-pricing is because comps from the hot spring market were relied upon instead of the cooler summer or fall / winter market. It’s an easy mistake to make as the market is shifting.

The ultra luxury market over $5 million often struggles, though, no matter what school district it’s in.  There just are not a lot of buyers wanting to spend or able to lay out that much money.

Resources for the Los Gatos Real Estate Market Trends

Here are some resources to help you better understand the statistics and market direction for our beautiful town, updated frequently:

A great overview of the statistics for the town of Los Gatos 95030 & 95032 can be found on my Real Estate Report by navigating to Los Gatos and then under “zips” choose which part of town you want to understand better.  Or view the same report on my Live in Los Gatos Blog.

On my Live in Los Gatos Blog, you’ll find an article updated often which considers the Los Gatos months of inventory, or the absorption rate, by price point and high school district.  Here it is extremely clear that we have a consortium of realty markets, not just one market per se.

Additionally, I have a subscription to Altos Research, which provides market data based on currently listed homes for sale.  Altos displays info by zip code, and those charts will be posted below.  They are automatically updated each week, so please bookmark this page and return often.

Altos Research: Los Gatos 95030

90-day stats for Single Family properties in
LOS GATOS, CA 95030 as of April 21, 2017
Median List Price:$2,635,111Average List Price:$3,250,404
Total Inventory:27Price per Square Foot:$962
Average Home Size:2,916Median Lot Size:21,334
Average # Beds:4.03Average # Baths:3.35
Homes Absorbed:4Newly Listed:4
Days on Market:141Average Age:49

90-day stats for Condo properties in
LOS GATOS, CA 95030 as of April 21, 2017
Median List Price:$1,211,129Average List Price:$1,213,493
Total Inventory:2Price per Square Foot:$714
Average Home Size:1,697Median Lot Size:n/a
Average # Beds:2.61Average # Baths:2.40
Homes Absorbed:0Newly Listed:0
Days on Market:26Average Age:47

Median List price of homes for sale in Los Gatos

median inventory of Los Gatos real estate - active listings

Los Gatos CA days on market

Call Mary Pope-Handy, Realtor, at 408 204-7673 to buy or sell homes in Los Gatos, San Jose, or Silicon Valley

Los Gatos real estate market trends

Altos Research: Los Gatos 95032

90-day stats for Single Family properties in
LOS GATOS, CA 95032 as of April 21, 2017
Median List Price:$2,747,110Average List Price:$3,054,941
Total Inventory:31Price per Square Foot:$816
Average Home Size:3,325Median Lot Size:12,087
Average # Beds:4.23Average # Baths:3.86
Homes Absorbed:5Newly Listed:4
Days on Market:151Average Age:28

90-day stats for Condo properties in
LOS GATOS, CA 95032 as of April 21, 2017
Median List Price:$1,094,923Average List Price:$1,045,496
Total Inventory:7Price per Square Foot:$737
Average Home Size:1,456Median Lot Size:n/a
Average # Beds:2.23Average # Baths:2.11
Homes Absorbed:1Newly Listed:2
Days on Market:71Average Age:43

Los Gatos real estate market trends

median per square feet

Meading Los Gatos Market Heat

Los Gatos Mountains 95033

90-day stats for Single Family properties in
LOS GATOS, CA 95033 as of April 21, 2017
Median List Price:$1,404,837Average List Price:$1,594,594
Total Inventory:17Price per Square Foot:$536
Average Home Size:2,583Median Lot Size:109,520
Average # Beds:3.50Average # Baths:2.62
Homes Absorbed:3Newly Listed:3
Days on Market:152Average Age:38

 

Why do you get so much more home for your money in Los Gatos than in a similar place like Los Altos? Why are the Los Gatos Real Estate Market Trends milder than Palo Alto or nearby?

Silicon Valley has a  concentration of high tech jobs close to Palo Alto, Mountain View, Sunnyvale and nearby, plus many others in Santa Clara, north San Jose and Cupertino.  Los Gatos is not the “closest in” for most of these companies (Netflix excluded!).  Traffic here is pretty terrible, especially on highway 85, so being a little further out has kept the Los Gatos housing market somewhat less in demand than our neighbors to the north like Cupertino and Los Altos. This is especially true for east Los Gatos, which is more dependent on Highway 85 south of 17. Even so, it’s not a far commute to Apple.  With everything that this town has to offer, prices here are really a very good deal for what you get!

For more information on the Los Gatos real estate market trends which are relevant to your property, or the one you’d like to buy, please contact me.  I would be happy to meet with you and discuss working together so that you can get the best deal possible with the current climate.

Please also visit my Silicon Valley real estate report, which includes info on all the cities and towns in San Mateo County, Santa Clara County, and Santa Cruz County. Here’s the link to the Los Gatos page. Also view the Los Gatos real estate market report on my SanJoseRealEstateLosGatosHomes.com site.

Browse Los Gatos homes for sale on the Live in Los Gatos blog.
Los Gatos homes for sale – view by map on the Live in Los Gatos blog.

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