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April 29, 2009

The real estate market seems to be turning, but primarily in the lower priced areas of Silicon Valley.  The single family homes in the lowest price points seem to be flying off the market.  In some areas, the majority of houses that fit that description are bank owned and short sale properties (such as the Alum Rock district of San Jose, where all but 5% of home sales in the first quarter were distressed property sales).

But what about Los Gatos?

At this point there are 254 homes for sale (single family homes, condos and townhomes), 56 pending sales and 29 which have closed in the last thirty days. That represents an inventory of 8.75 months (listings divided by closed sales).  It’s also evident that not everything which sells actually closes since the ratio of pendings to list prices is stronger than the ratio of closeds to list prices.

The lowest priced homes in Los Gatos are faring better than more expensive homes in Los Gatos, which is also the case throughout Santa Clara County.

Here are some graphs to help Live in Los Gatos readers to see what’s happening in Los Gatos:

Inventory in Los Gatos

Average Price per SF in Los Gatos listings

List price April 08 to April 09 in Los Gatos

Absorbed Listings in Los Gatos

As you can see from the graphs, the condos (representing the lowest price points in Los Gatos) seem to be faring better than the single family homes.

Below is a chart of the list prices for single family homes in Los Gatos with 95030 and 95032 zip codes (“in the town”) as well as 95033 (county area in the mountains).  In all cases, the market is more favorable in the lowest price points.