The Silicon Valley Real Estate Report, including data for Los Gatos homes for sale and sold in November, is now ready. Below please find a summary for the key points and a link to view the entire report.
The Los Gatos condo and townhouse market had been improving in months prior but seems to have suffered a little setback in November:
For the Los Gatos single family home market, there’s noticeable improvement. Inventory is declining, prices are nudging up from earlier this year (and also from a year ago in many parts of the local market). The trend appears to be moving toward a more balanced market overall. There remain some mixed indicators, though – hinting that the recovery is not happening uniformly across all price points, neighborhoods, etc.
General Comments for the real estate market in Santa Clara County
The median price for single family, re-sale homes (houses and duet homes) surpassed $600,000 for the first time since August 2008.Inventory remained in a downward trend in November: down 66.7% compared to November 2008.Pending sales were up a whopping 90.4% year-over-year.
For San Jose, Saratoga, Monte Sereno, and the rest of Santa Clara County, please visit www.popehandy.rereport.com and pull the specific area that interests you (for districts within San Jose, please first select the city of San Jose, then choose Cambrian Park, Almaden Valley, etc.)
The real estate sales numbers are in for Los Gatos, Saratoga, Monte Sereno, San Jose and all of Silicon Valley for December 2008 and for the year as a whole.
Santa Clara County Real Estate Report for 2008 (annual report – you may also find on this site the annual reports for Los Gatos, the Los Gatos Mountains, Campbell, Saratoga, etc. as well as quarterly reports and monthly reports – monthly report links found at the bottom of this post).
You already know that things have been bad: money’s hard to borrow, homes are hard to sell, jobs seem to be threatened.
There was some good news to be found, though.
Home sales increased in the second half of 2008, and we expect that to continue
By the end of 2008, the number of sales were up year-over-year from 2007
Prices are down – in some areas prices have “rolled back” two to three years. In other places, it’s closer to four years. This is good news for buyers!
If your downpayment is strong and credit is great you can get a loan and the news for you is great: interest rates are very, very attractive now! FHA loans are reappearing! Sellers are considering carrying second loans!
Banks are finally getting it together for handling REOs and short sales. New divisions are appearing to handle the increased workload.. These sales should be smoother in 2009.
How about our local market in the west side of Silicon Valley?
The upscale communities of Los Gatos, Monte Sereno, Saratoga, Almaden Valley, Cupertino and other foothill areas with good schools did not fare as badly as most of Santa Clara County in 2008, but they are not immune from the prevailing winds, either.
Overall, inventory is up and time on the market is up while the list price to sales price ratio is down.
Please visit my Real Estate Report at www.PopeHandy.ReReport.com for the complete, interactive report for last month, last quarter, or last year – countywide, by city, or by area of San Jose, or click on the following links to see the most recent monthly report for these areas:
The Los Gatos real estate market has had a difficult year in 2008. Are things improving now, levelling off, or worsening? What Los Gatos homeowners care about most is value: what’s my home worth now? Today we will look at what list prices are doing among Los Gatos proerties for sale: both single family homes (houses) and condominums and townhomes in both the 95030 and 95032 zip codes.
The data, care of Altos Research, pretty much speaks for itself. The situation varies from one area to the next and one price point to the next. For more detailed information than is presented here, please contact me directly.
I. Broad Overview of Los Gatos homes for sale
First let’s see an overview of list prices for single family homes in Los Gatos by zip code (all price quartiles combined).
Next, same type of data but for Los Gatos condominiums and townhomes for sale (both zip codes, median list price).
II. Closer look at houses for sale in Los Gatos
Next we’ll look more closely at single family homes by zip code and by price point or quartile.
Los Gatos houses in the 95030 zip code area by quartile:
Los Gatos houses in the 95032 zip code area by quartile:
III. Condominiums and Townhomes for Sale in Los Gatos
Next the list pricing for condos in 95030 by quartile
And finally, list prices of condos and townhouses for sale in the 95032 area by quartile
In summary, it looks as though condo prices have done fairly well overall. In 95030, they are up year over year across the board, and in 95032 they two top quartiles are up. The entry level condos in 95032 appear to have lost value year over year. The reason may be that buyers in these price points are purchasing single family homes outside of Los Gatos instead.
Among houses, the slippage in pricing is fairly slight in both zip codes among the three lower quartiles, but the market difficulties are much more pronounced among the most expensive homes in both of the Los Gatos areas. The Los Gatos luxury market has taken more of a beating than more midrange homes this year? Why is that? There are a number of possibilities, but the bottom line is that if you are a luxury home buyer looking in the west side of Silicon Valley, this may be a great opportunity for you!
Please call or email me if you’d like more information on Los Gatos real estate market conditions.
We’ll get the exact, hard data for the Los Gatos real estate market in a week or so from MLSListings.com, our MLS provider (formerly known as REInfolink). Meanwhile, though, we can have a look at the closings reported to date and get a feel for how the market is doing.
This month, there were 29 closings, or completed sales, in the town of Los Gatos (zip codes 95030 and 95032) among single family homes and condos/townhomes. Of the 29 Los Gatos homes which sold, 24 were single family homes and 5 were condominiums or townhouses. I was involved in two of those sales – one as the listing agent and one as the selling agent (working with the buyers), both single family homes that were in the $1,000,000 to $2,000,000 price range, and both are in the Los Gatos School District.
How did they homes in Los Gatos do in August?
First, let’s look at single family homes. One sold “off” the MLS, so it’s hard to know how it might have done on the open market. It was extreme in another way – it sold at $5,400,000 – the most expensive closing of the month. Not your typical Los Gatos price, though not unheard of either.
For single family homes in Los Gatos, the multiple listing service, the average “days on market” was 50 and average “collective” or “cumulative days on market” was 71. So typically, it’s taking 71 days for houses to sell in Los Gatos. (My listing, which was on Magneson Terrace, took 66 days to sell – felt much longer for everyone involved, though!) Some homes sold fast (1-10 days) and a few a very long time (longest was 238 days), but most are in the 2-3 month range.
The average list price was $1,915,500 and the average sales price was $1,847,989 among Los Gatos houses. The lowest home sold for $870,000 and the highest for $5,400,000, as mentioned above. Fifteen sold between $1 million and $2 million, 3 below that range and 6 above it
Only 3 of the 24 sold higher than list price. Just 4 sold “at” list price (but of those, 2 were reduced before they sold at list price, so only 2 sold at the original list price) and the vast majority had one or more price reductions prior to selling.
What about townhouses and condos in Los Gatos? There were only five spread between two zip codes which are so far reported as closed in August. Of those, the average Days on Market is 41 (same number for Collective DOM), the average list price is $687,789 and average sales price $676,000.
So it looks like the condo market is faring better than the single family home market in Los Gatos right now, according to closed sales prices.
While pricing appears to be flat by some indicators in July, we have seen many price reductions in homes that appeared aggressively positioned in the market before offers are procured. Buyers are waiting, generally, and prices do seem to be falling somewhat in the under $2 million price range.
The soft real estate market that has been plaguing much of San Jose and Silicon Valley now appears to be impacting the entry level and mid-level homes in Los Gatos.
What can we expect? With an election year, things are always uncertain. Likewise, the interest rate has threatened to rise a bit and if that happens, it will adversely affect home prices for sellers. Think of it like the scales of justice: one side goes down, the other goes up.
Waiting may or may not be a good idea. Prices may go down and interest rates may go up. Or perhaps not – no one knows. As one of my buyer clients said, recently, “prices may go down, but if I wait, it’s like I put my life on hold”. (That buyer is now a homeowner.)
The real estate market in Silicon Valley, including Los Gatos, is comrised of many micro-markets. Please call me for specific assistance in the area where you live or would like to live.
Is there a “best time” to buy or sell a home in Los Gatos, Saratoga, or San Jose? That’s a question I get a lot. The answer is not so clear as many people would like.
Often we have some seasonally predictable patterns. Let’s look at them.
Winter:inventory tends to be very low in winter (from late November until somewhere between New Year’s, the Superbowl, and Valentine’s Day). Each year it’s slightly different, but in that “dead of winter” (as much as we have it here in The Valley of Heart’s Delight) is usually the time with the lowest number of sales, the best prices for buyers, the most “absorption” for sellers, the best interest rates, but the LEAST inventory to choose from. So you may get a good price as a buyer, but may not have much to choose from. Sellers may have the best odds of selling a home during this time because there are so few homes to choose from, and some buyers are anxious to close during the calendar year for tax or other reasons.
Spring: What’s best for sellers? Most years (but not all) that “best window” is from February through April. On a good year, it may continue into May. Some years, that “best window” for sellers is just a couple of weeks in March. Other years, it moves around and could be earlier, later, longer or shorter. Or just not happen at all. For buyers, spring brings a new influx of inventory and often decent rates. As more buyers come on the market, interest rates tend to creep up most years (a supply and demand issue).
Summer: Somewhere around June, though, the tide begins to turn and by mid to late summer, sales have slowed considerably and sometimes prices even drop by about August. It varies from year to year. This can be a great time for buyers – lots of inventory to choose from, Interest rates may not be their cheapest, though.
Fall: Many years, there is a second rally (besides the one that happens near March) with a mini flurry of activity between Labor Day and Halloween. That can often be an excellent time to sell or to buy (more inventory than August or November/December).
There are pros and cons to each time on the market for both buyers and sellers. Depending on your home, any time can work. Traditionally, spring is viewed as best for both because there is a good supply of inventory but it doesn’t linger too long. So in some ways, spring is the most balanced market. Any time of year CAN work, though. So do not tie your buying decision soley to something like the school year, the interest rates, or the holidays. Call me if you’d like to discuss your individual situation.