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The nicely updated and remodeled homes in the lower prices to move-up prices in Los Gatos continue to sell well (quickly, often with multiple offers) if they are priced right. Specifically, these are homes under $2 million. It is close to a "balanced market" overall - for the most part, prices in Los Gatos are holding steady (though it appears that in some areas and price ranges, sales prices may be creeping up). Days on market have been shrinking recently. Inventory is also down.
Because inventory is low there is pressure on the buyers. The number of sales is rising when you consider the averages (first figure) spread out over 12 months, but falling sharply when the three month view is considered. What is happening? Sales are picking up a little generally but now, in August, they are falling off. This is seasonally normal. The median and average sales prices seem to be keeping pace. Days on market have been shrinking.
The following chart shows median and average price trends plus sales. The chart uses a 12-month moving average to eliminate any seasonal variation.
Overall, it is close to a balanced market (much less of a buyers market than it was a few months or a year ago), especially in the homes under $2 million.
The next chart is the same as above but uses a 3-month moving average. This smoothes out month-to-month variations yet shows seasonal variations.
This chart shows the current inventory of homes for sale compared to the number that have sold. Notice please that inventory is declining and sales are too - but not as much. This means that overall, the available number of homes is shrinking. Less supply but not a lot less demand. Result? It's swinging into the seller's favor. The seller may now get the house sold because prices have not been falling but overall, inventory has.
The next series of charts shows the same thing as above but for condominiums and town homes. This is very similar to what we're seeing in the single family market. Prices are holding steady and the number of sales is rising, generally, when the 12 month average is considered.
For detailed information on specific homes or neighborhoods, contact me.
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