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 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. Look any higher and you’ll start to see some dramatic slowdown over $3,000,000, and in the $4.5 – $5 million range there’s no movement. 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 sale did occur, and that’s been more common in recent months.

2a - Los Gatos real estate market trends

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:

LG 2018 04 20 c - Los Gatos real estate market trends

From this chart you can see that inventory from 2017 is less than half of what it was in 2013, and 2018 is of to an even slower start!!

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.)

Low inventory means fewer sales.
 That is 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 who’s paychecks come from commissions on these sales. For some Realtors, the loss of sales volume is partially offset by rising prices, if they are among those 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. In a normal market, 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, there will always be homes that are having trouble selling. 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 of bad comps (market comparables), such as using numbers from a hot spring market instead of the cooler summer or fall / winter market, or when things like differences in lot size or school district within a neighborhood are not considered in pricing. 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 13, 2018
Median List Price:$4,082,308Average List Price:$4,632,846
Total Inventory:22Price per Square Foot:$996
Average Home Size:3,845Median Lot Size:43,575
Average # Beds:4.45Average # Baths:4.58
Homes Absorbed:3Newly Listed:3
Days on Market:159Average Age:39

90-day stats for Condo properties in
LOS GATOS, CA 95030 as of April 13, 2018
Median List Price:$1,278,667Average List Price:$1,278,667
Total Inventory:1Price per Square Foot:$1,013
Average Home Size:1,332Median Lot Size:n/a
Average # Beds:2.17Average # Baths:2.29
Homes Absorbed:0Newly Listed:0
Days on Market:20Average Age:27

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 13, 2018
Median List Price:$2,708,786Average List Price:$2,988,372
Total Inventory:16Price per Square Foot:$874
Average Home Size:3,105Median Lot Size:14,645
Average # Beds:4.15Average # Baths:3.72
Homes Absorbed:4Newly Listed:5
Days on Market:39Average Age:44

90-day stats for Condo properties in
LOS GATOS, CA 95032 as of April 13, 2018
Median List Price:$968,472Average List Price:$949,004
Total Inventory:4Price per Square Foot:$706
Average Home Size:1,248Median Lot Size:n/a
Average # Beds:2.33Average # Baths:2.17
Homes Absorbed:2Newly Listed:3
Days on Market:5Average Age:42

Los Gatos real estate market trends

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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 13, 2018
Median List Price:$1,308,808Average List Price:$1,424,967
Total Inventory:26Price per Square Foot:$473
Average Home Size:2,546Median Lot Size:146,479
Average # Beds:3.40Average # Baths:2.77
Homes Absorbed:2Newly Listed:4
Days on Market:164Average Age:42

 

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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