October 08, 2008
The condo market in Los Gatos is improving after a few rough months. It remains a buyer’s market, but not so deep a one as we saw in late spring and over the summer.
Although days on the market for Los Gatos condos and townhomes are considerably longer than they were a month or a year ago (78 days in Sept vs 32 in Aug and 33 a year ago), and the list price to sales price ratio is slipping (96.4% in Sept vs 98.7% in Aug and 99.2% in Sept 2007), there are some signs of improvement. The number of homes on the market is the same, 44, as last month, but the number of closed sales has risen from 6 in August to 8 in September.
Surprisingly, the sales prices are up too (both average and median), both for month over month and year over year. Here are those numbers (care of The Real Estate Report, a subscription I have):
| Trends At a Glance | Sep 2008 | Previous Month | Year-over Year |
|---|---|---|---|
| Median Price | $850,000 | $700,000 (+21.4%) | $800,000 (+6.3%) |
| Average Price | $768,021 | $619,167 (+24.0%) | $741,417 (+3.6%) |
And finally, one of the most helpful ways of understanding the market is the absorption rate, which may be calculated as days, weeks, or months of inventory. It’s a reflection of how long it would take to sell off the current inventory if no new homes came on the market and homes continued to sell at the present rate. Below, please find the months of inventory for condos and townhomes in Los Gatos. N that there is recent improvement in the numbers:
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Next, here’s a view of the condo and single family home market of Los Gatos side-by-side:
If you’d like more information on how the Los Gatos townhome and Los Gatos condo market are faring, please visit my Real Estate Report for an interactive online report for all of the Silicon Valley real estate market.
Please call me if you’d like a private consultation about your real estate questions, plans, and hopes.
