These numbers were run today using MLSListings.com and it’s possible that a few more homes will be recorded as closed sales or new homes added to the market after we ran these numbers. One other disclaimer: sometimes the number of closed sales is very low or is at 0. This can be for many reasons. In some cases, there are a few which are sale pending and simply haven’t closed recently. In other cases, the opposite could be true, indicating a possible lack of demand or inventory. That being said, what do the numbers say?
The overall MOI still shows a strong sellers market, but with low inventory, possibly affected by the season on top of the continuous low-inventory trend. While there is rapid turnover in the mid-range price points, the high-end to luxury markets show slow to no movement. Demand is active up to the $3 million marker!
So what does it all mean? That Los Gatos remains in a sellers market, that demand is proving to be steady.
Here is the chart from last month for comparison:
All of Los Gatos 95030 and 95032, both high school districts – overall, it’s a clear seller’s market.
Now let’s view just the homes which are in the Los Gatos – Saratoga Joint Union High School District (or homes “in the schools” as locals say). Houses for sale with Los Gatos schools tend to be more pricey than those in neighboring school districts. This isn’t just the schools, but is also a function of being closer to downtown Los Gatos. The lowest priced homes in this area are seldom listed for less than $1 million. Current market movement is, for the second month in a row, in the price range of $1.5-$3 million, with an oddball sale in the over $5 million range. The total MOI is slower than the town monthly average. Since this part of town is generally a more stable market than other areas, meaning the demand and prices don’t fluctuate as dramatically as elsewhere, a higher MOI during a spike in the seller’s market is not unusual.
And the chart from last month:
As you can see, this area is still in a clear sellers market, though different price points may be hotter or colder than the average. Generally, it remains a good time for sellers while, for buyers, it’s tough competition.
And finally, let’s see how the market is within the area of LG which is served by the Campbell Union High School District (Leigh HS and Westmont HS).
Here it is sometimes possible, though not common, to find a Los Gatos home for under $1 million. When you do, either it needs work, is ultra small, is on a busy road or has some other location issue, or perhaps is simply land value. You won’t be likely to find one anytime soon in this blazing seller’s market! This area’s main target is the “sweet spot” of the Los Gatos real estate market – homes in the Campbell Union High School District listed between $1 and $2 million (neighborhoods such as Belwood of Los Gatos and Belgatos in east Los Gatos). Because of the strong sellers market, these types of houses have been rare over the last year and selling faster and higher than ever. Buyers still struggle against tough competition, and what little available listings are going fast.
Usually the Campbell school district is not as strong as the Los Gatos-Saratoga District, but as you can see from this month it isn’t always the case. This area has a very different dynamic. Where homes in the Los Gatos-Saratoga District often sell steadily up to the luxury market, homes in the Campbell Union District generally only sell within a tight range in the lower price points, and usually only keep up with the rest of Los Gatos in the most affordable entry-level market, as the chart shows.
What can we take away from this study of the months of inventory? It’s only one data point, but it indicates that properties priced between $1,500,000 and $2,500,000 range in Los Gatos have very high odds of selling in one month or less, and that homes are generally selling well up to $3,000,000. It’s still a strong seller’s market in Los Gatos.
Part of what I see happening (in Los Gatos, Almaden, Saratoga and elsewhere) is that more sellers are putting their homes on the market in less than best condition. This isn’t happening only in Los Gatos, but throughout Silicon Valley. Sellers hear that it’s a sellers market, so some do not put the effort in. For those who do, and who price the home aggressively, sales are quicker and tend to come with multiple offers, especially in the lower price points.
Note: Altos uses list prices, not sold prices.
Next, the 95032 area of Los Gatos (much of which is in the Campbell Union HSD, but not all).