December 17, 2013
Sorting out the local Los Gatos real estate market can be a bit tricky, but one of the best instruments for measuring performance is the months of inventory (MOI, or absorption rate). In this article we’ll consider the MOI houses in Los Gatos 95030 and 95032 by high school district and price point, since I believe those are the two main drivers of our residential real estate market.
Also, this time I’m adding in the pending sales as an indicator of where the market is going, too – just to cover the bases! Finally, since I did a similar study the first week in November, but without the pendings, I’ll keep those below the current tables for the sake of comparison. Overall, right now we have a brisk 2 months of inventory for houses in Los Gatos. But homes in the lowest price point are selling far faster – at about 10 days of inventory!! The MOI increases very clearly with higher price points, where it becomes increasingly challenging to sell.
About six weeks earlier, it looked like this chart below -the MOI is now a lot faster (4.19 then to 2.04 now) as inventory has shrunk by about a third and sales have increased (21 to 28 now). Perhaps most striking is the change in the luxury or high end market over the last six weeks. It seems far harder to sell a luxury home now as opposed to then.
Please read the full article on my Valley of Hearts Delight blog