A resource for folks living in or moving to Los Gatos, by Mary Pope-Handy

Buyers Market

How’s The Los Gatos Real Estate Market Doing Now?

March 06, 2013

The market is heating up in Los Gatos as of about 4 weeks ago with new sales commenced.  These will not be reflected in the closed sales until early March, so please take the ‘solds’ info below with a grain of salt and keep the changed market conditions in mind!

Below please find the statistics and numbers for house sales in the town of Los Gatos (95030 and 95032), including county pockets, which closed in the month of February 2013. The median price is down both month over month and also year over year.  It has been softer in Los Gatos than in many Silicon Valley communities right now.

Trends At a Glance Feb 2013 Previous Month Year-over Year
Median Price $1,435,000 $1,555,000 (-7.7%) $1,442,500 (-0.5%)
Average Price $1,506,570 $1,704,850 (-11.6%) $2,320,030 (-35.1%)
No. of Sales 19 13 (+46.2%) 16 (+18.8%)
Pending Properties 36 18 (+100.0%) 48 (-25.0%)
Foreclosures Sold 0 0 (N/A) 1 (-100.0%)
Short Sales Sold 2 0 (N/A) 1 (+100.0%)
Active Listings 60 52 (+15.4%) 86 (-30.2%)
Active Foreclosures 1 0 (N/A) 2 (-50.0%)
Active Short Sales 1 0 (N/A) 10 (-90.0%)
Sales Price vs. List Price 97.4% 99.4% (-2.0%) 94.8% (+2.7%)
Days on Market 88 34 (+160.7%) 70 (+25.3%)

Inventory is low all over – and Los Gatos is no exception, though inventory did go up a bit countywide from January 2013 to Feb 2013.  How bad is it? Off 30% from a year ago (and inventory was low then: Feb 2012 was 86, Feb 2011 was 132 available houses).

Days on market: The figure for February of 88 days on market for sold properties reflects the DOM of houses that closed in February and most likely went into contract in January, or possibly December – both of which were “cooler” times than the shift we saw take place in early February 2013.

How long have the currently available single family homes in LG been on the market?

As of this moment, in 95030 and 95032 combined there are just 76 single family homes for sale. Most haven’t been on all that long, in fact, appx 64% or 2/3 have been on the market for 60 days or less, and exactly half of the available inventory has been on the market for 1 month or less.  Let’s see the breakdown in one-month increments of the number of homes in each time bracket.:

0 – 30 days:   38 homes
31 – 60 days:  11
61 – 90 days:   4
91 – 120 days:  4
121 – 150 days: 2
151-180 days: 9
181-210 days: 1
211-240 days: 1
241-270 days: 0
271-300 days: 1
301-330 days: 1
331-365 days: 1
366 + days: 3  (oldest one almost 1500 DOM)

How long were the under contract single family homes in LG on the market?

I won’t repeat this level of detail for the Los Gatos houses which are sale pending or under contract (real estate agents: status 3 & 4), but the average days on market for those 17  pending properties is 26 and of these, only 2 were more than 30 days (1 sold with 49 DOM and another 191 DOM).  In other words, when homes sell now, they are selling faster than the DOM from the closed sales in February would reveal.  This will show up in March’s statistics next month.

Are there multiple offers in Los Gatos, and overbids?

Yes, there are some of each.  I did a spot check of the sales for the last 7 days and the last 14 days and in both cases, the average sales price was higher than the average list price.  For the last 7 days, there were 8 closed sales, 4 above list, 1 at list price and 3 below.)

Los Gatos condominium & townhouse sales (click on link for more info)

Dramatic improvement in the median and average sales price of condos and townhomes in town year over year as well as from the prior month.

Trends At a Glance Feb 2013 Previous Month Year-over Year
Median Price $787,500 $649,000 (+21.3%) $601,000 (+31.0%)
Average Price $708,900 $659,286 (+7.5%) $562,675 (+26.0%)
No. of Sales 10 7 (+42.9%) 8 (+25.0%)
Pending Properties 9 11 (-18.2%) 19 (-52.6%)
Foreclosures Sold 0 0 (N/A)< /span> 2 (-100.0%)
Short Sales Sold 0 0 (N/A) 1 (-100.0%)
Active Listings 9 6 (+50.0%) 24 (-62.5%)
Active Foreclosures 0 0 (N/A) 0 (N/A)
Active Short Sales 0 0 (N/A) 3 (-100.0%)
Sales Price vs. List Price 100.9% 102.1% (-1.2%) 96.1% (+5.0%)
Days on Market 10 18 (-43.9%) 63 (-83.9%)

 

The Monte Sereno real estate market

Monte Sereno houses (no condos in MS) – primarily 95030 but a smattering of 95032 also.  There are so few homes in Monte Sereno (just 4,000 residents) that the sales numbers are very easily skewed.  Disclaimers aside, here are the Monte Sereno market stats:

Trends At a Glance Feb 2013 Previous Month Year-over Year
Median Price $1,600,000 $1,813,000 (-11.7%) $0 (N/A)
Average Price $1,600,000 $2,032,670 (-21.3%) $0 (N/A)
No. of Sales 1 3 (-66.7%) 0 (N/A)
Pending Properties 7 2 (+250.0%) 0 (N/A)
Foreclosures Sold 0 1 (-100.0%) 0 (N/A)
Short Sales Sold 0 0 (N/A) 0 (N/A)
Active Listings 9 6 (+50.0%) 0 (N/A)
Active Foreclosures 0 0 (N/A) (N/A)
Active Short Sales 0 0 (N/A) (N/A)
Sales Price vs. List Price 94.2% 112.0% (-15.9%) 0.0% (N/A)
Days on Market 15 42 (-64.3%) 0 (N/A)

 

 The Los Gatos Mountains real estate market trends and statistics – 95033 – houses, no condos or townhouses only – NO HOMES SOLD/CLOSED in Feb 2013, so no charts to share!

A more affordable, but beautiful, place to live is in the coastal foothills over the town of Los Gatos.  The communities there are closely affiliated with the town of Los Gatos, if distinct!  This area is always tougher to sell, and slower to appreciate. Prices here aren’t much better, and possibly worse off (depending on the area, price point etc.), than a year ago.

Altos Live Charts for Los Gatos 95030 and 95032 plus Los Gatos Mountains 95033 and Monte Sereno Real Estate

Next please enjoy the live Altos charts, which are updated automatically each week – each segment is a little different than the others (and the reports would be more diverse still if we broke these down further, by price quartile – – sign up below if you want these delivered to you via email each week).

As you can see, pricing is stronger in 95030 than in 95032.  This may be due to the schools (only a little of 95030 is in the Campbell Union High School District, but a larger portion of 95032 is).  The strong Los Gatos schools are a major driver of desireability – but not the only one.  Many people want to have the “walk to town” element, even if their kids are in private schools.

Real Estate Market Chart by Altos Research www.altosresearch.com

Real Estate Market Chart by Altos Research www.altosresearch.com

Real Estate Market Chart by Altos Research www.altosresearch.com


 

What Is Selling in Los Gatos Now?

July 26, 2010

As of today, there are 163 single family homes (houses & duet homes) for sale in Los Gatos 95030 and 95032.  In the last month, 29 homes in that same area closed escrow.  So the months of inventory for Los Gatos houses for sale is 5.62, very close to the benchmark of a balanced market, which is 6 months. (There are also 48 sales which are pending without a release clause, but not all of these will close escrow.)

Here are some quick facts regarding the 29 homes which have closed escrow in the last month.

List price to sales price ratio

  • the average list price to sales price is 98% (most homes sold for less than asking price)
  • 14 out of 29 sold for less than list price (48%)
  • 3 sold right at list price (10%)
  • 12 sold for more than list price (41%)

Distressed sales (short sales and bank owned homes)

  • 3 of the 29 were short sales (10%)
  • 1 of the 29 was bank owned or REO (3%)
  • distressed sales (3 +1) accounted for 14% of the solds

Days on market, home size and lot size

  • the average Days on Market of these solds was 48
  • the average length of escrow was 46 days
  • the average square footage of the homes was 2552
  • the average square footage f the lot was 15,788

Average list price and average sales price, median list & sales price, highest and lowest price of homes bought

  • the average list price was $1,460,754
  • the average sales price was $1,437,434
  • the median list price was $1,308,000 & median sales price $1,275,000
  • the least expensive home sold went for $800,000 (a 1 bed, 1 bath cottage)
  • the most expensive home sold for $3,550,000

Price Points of sold homes in Los Gatos

Most of the homes sold between 1 and 2 million dollars.  Here’s the breakdown by price points:

Over $3 mil = 1 home
Between $2 mil and $ 3 mil = 2 homes
Between $1 mil and $2 mil =  21  homes
Under $1 million = 5 homes

How fast are homes selling in Los Gatos?

The DOM was 48 as an average, but that doesn’t tell the whole story.  While some homes sold only after many months, a number of them sold fast:
Within 1 week = 6 (21%)
Between 1 and 2 weeks =  4 (14%)
Between 2 and 3 weeks = 5 (17%)
Between 3 and 4 weeks = 2 (7%)

All DOM at or under a month = 17 = 59% of the sales.  So the odds are very good that if your home is priced right, it will sell in the first 1-3 weeks on the market.  The most sales of these “sold quickly” homes happened in the very first week.

What about all the homes that have not sold? What can the owners learn from this?  First, your best chance of selling is early on in the listing period.  If you get to the one month mark, the chances begin diminishing that you can sell without a price change.  Do everything you can to make your home turnkey and super accessible that very first week or two especially!

What is key to sales success is generating a good amount of qualified traffic, again especially early in the game.  In Los Gatos, having open houses and having the home open for the broker’s tour are both important (at least initially – less so after 2 or 3 weeks on the market).  If you are not getting at least 3 to 5 showings per week, you may have a problem.  (Disclaimer: this is “in general” and may not apply to luxury estates and certain other properties.) Having overly restrictive showing schedules makes it hard to show and hard to sell. 

For homes priced below $2,000,000 it is really not a bad market right now for sellers or buyers – it is pretty balanced overall.  In some areas there’s more competition then sellers would prefer, but in general these homes are moving when priced right, nicely staged and well marketed. 

Lowest Priced Homes Remain the "Best Sellers" in Los Gatos

October 16, 2009

As readers of this blog know, Los Gatos is full of micro-markets, and that can make generalizations about how the “Los Gatos real estate market” is doing a bit skewed. So whatever you read online, or hear about in your neighborhood or from friends, do take with a grain of salt since your home may or not be similar to whatever other home you’re hearing about in terms of how it might sell (or if you’re a buyer, the home you may want to purchase may be different….).

Disclaimer aside, I did a few minutes of data-collecting on MLSListings just now for single family homes (houses or attached/duet homes, but not condos or townhomes) in the town of Los Gatos (not Monte Sereno, but LG with zip codes 95032 and 95030). It appears that the general trend continues: the most affordable Los Gatos homes, generally, are selling fairly well.

What I did was run the numbers (agents: using the “preview” button on REIL), then simply added two other criteria: high school district (Saratoga-Los Gatos High School District and Campbell Union High School District) and then list price of up to $1.5 million. Then I figured out the absorption rate, or the months of inventory (MOI). The solds are homes which have closed in the last month.

Where the MOI is greater than 6, it is a buyer’s market, and where it’s under 6 it is a seller’s market – six months is considered a “balanced” market.

So, looking at the first set, for Los Gatos overall the absorption rate is 5.6 months – or very close to a balanced market. But we know that some areas and price points are selling much slower than others. Surprisingly, when all of Los Gatos with “the schools” are considered, the MOI is 7.7. Given that it feels like entry level homes in that part of town feel like they’re flying off the market, this doesn’t sound right. So look at the second group of numbers, where the price range is limited to those under 1.5 million. We can see that there are only 39 such homes for sale now (vs 101 for all price points) and the MOI is a brisk 3.55. That makes sense. So what’s slower are the more expensive homes, generally. Entry level homes in the schools are selling at a healthy pace.

Interestingly, homes in the Campbell Union High School District are faring even better – and the data is inverted, slightly, as to where the sweeter spot of the market lies. For these homes, those under 1.5 mil are going at a quick 2.4 months of inventory. The market as a whole for Los Gatos houses for sale in this area is lower still, though – 2.23. That demonstrates that the market is even faster in the higher priced homes. My belief is that this is the case because those homes – high end homes in the CUHSD – have taken a bigger hit on pricing and buyers are responding. Cannot prove it in this brief blog post entry, though, but that’s my (hopefully educated) hunch.

What about your neighborhood, or where you’d like to buy? Get hyper local when you think about how “the market” is. Feel free to visit my Los Gatos Real Estate Report and see local sales in your neighborhood. Make it more precise by indating the beds/baths you want to consider, and how far out (in a radius) you’d like to see the comps, or how far back in time. Best part: you don’t have to register, you don’t have to leave a footprint. (Your search is not saved on my site, so I will not be showing up on your front porch!) Or call or email me for a confidential, no obligation, no-pressure consultation.

Mary Pope-Handy

Realtor
ABR, CIPS, CRS, SRES
Sereno Group Real Estate
214 Los Gatos-Saratoga Rd
Los Gatos, CA 95030
408 204-7673
Mary (at) PopeHandy.com
License# 01153805

Selling homes in
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