May 12, 2010
Right now in Los Gatos, there are 154 houses (or duet homes) available or for sale in 95030 and 95032. Of them, 4 are short sale listings and 3 are REOs (real estate owned by the bank, or “bank owned”). That doesn’t sound too dramatic, does it?
But short sale listings are priced significantly lower than normal Los Gatos homes for sale, so they sell faster. (Not all of them will close escrow, but that’s for another post.) The numbers are much higher as a percentage of the homes under contract or sale pending. Of the pending sales, there ar 61 single family homes under contract in all, 14 of which are short sales (23%) and none is bank owned.
The numbers become more dramatic when the school district or price point is broken out. A larger percentage of short sales is found among lower priced homes in the Union or Moreland School District areas of Los Gatos rather than more expensive properties which are “in the schools”. Some areas have been more hard hit than others. Tonight I ran the numbers for the faithful readers of this blog and I hope you find it interesting – I did!
First, pending short sales of houses on the market in the Los Gatos School District. The ratio is appx 22.22% of all pending sales are short sales in this part of Los Gatos. (DOM = “days on market”)
Now, houses in Los Gatos which are in either Union or Moreland Schools. Here, the ratio is a little higher – 24% of all sales are short sales. Unfortunately for the folks in the Loma VIsta, El Gato and Linda neighborhoods, a disproportionate number of short sales are in this area, and that’s putting downward pressure on pricing there.
What about short sales of condos and townhouses in Los Gatos? We’ll again have a look by school district (something most news sites never factor in….).
In the Los Gatos School District area of Los Gatos, the short sales account for 30% of the pending sales of condominiums and townhomes for sale. This is a significantly higher percentage than the homes! It is probably due to pricing – the more affordable homes are the hardest hit with short sales, so entry level housing in Los Gatos (i.e., the least expensive homes in town) are impacted the most. This part of town is more expensive than that of the Union or Moreland Schools, so let’s see how it compares to that.
Finally, Los Gatos condominiums and townhomes which are under contract and are short sales in the Union School District or Moreland School District areas of Los Gatos. In this part of town, there are 8 condos or townhouses which are sale pending, and four of them are short sales – so a whopping 50% of the pending sales of townhouses and condos in this part of Los Gatos are short sales!
Although there are some more expensive sale pending Los Gatos homes for sale which are short sales, the majority of short sales are in the more affordable price ranges, so the Leigh High School or Westmont High School (Union & Moreland Schools) areas of town are much more impacted by short sales than the pricer areas of Los Gatos “in the schools”.
How important are short sales to your home’s value? It all depends on how prevelant they are in your area. One can be dismissed as a fluke, but if there are multiple short sales nearby, it will definitely harm home values, unfortunately.