As readers of this blog know, Los Gatos is full of micro-markets, and that can make generalizations about how the "Los Gatos real estate market" is doing a bit skewed.  So whatever you read online, or hear about in your neighborhood or from friends, do take with a grain of salt since your home may or not be similar to whatever other home you're hearing about in terms of how it might sell (or if you're a buyer, the home you may want to purchase may be different....).

Disclaimer aside, I did a few minutes of data-collecting on MLSListings just now for single family homes (houses or attached/duet homes, but not condos or townhomes) in the town of Los Gatos (not Monte Sereno, but LG with zip codes 95032 and 95030).  It appears that the general trend continues: the most affordable Los Gatos homes, generally, are selling fairly well. 

What I did was run the numbers (agents: using the "preview" button on REIL), then simply added two other criteria: high school district (Saratoga-Los Gatos High School District and Campbell Union High School District) and then list price of up to $1.5 million. Then I figured out the absorption rate, or the months of inventory (MOI).  The solds are homes which have closed in the last month.

Where the MOI is greater than 6, it is a buyer's market, and where it's under 6 it is a seller's market - six months is considered a "balanced" market.

So, looking at the first set, for Los Gatos overall the absorption rate is 5.6 months - or very close to a balanced market.  But we know that some areas and price points are selling much slower than others.  Surprisingly, when all of Los Gatos with "the schools" are considered, the MOI is 7.7.  Given that it feels like entry level homes in that part of town feel like they're flying off the market, this doesn't sound right. So look at the second group of numbers, where the price range is limited to those under 1.5 million.  We can see that there are only 39 such homes for sale now (vs 101 for all price points) and the MOI is a brisk 3.55. That makes sense.  So what's slower are the more expensive homes, generally.  Entry level homes in the schools are selling at a healthy pace.

Interestingly, homes in the Campbell Union High School District are faring even better - and the data is inverted, slightly, as to where the sweeter spot of the market lies.  For these homes, those under 1.5 mil are going at a quick 2.4 months of inventory.  The market as a whole for Los Gatos houses for sale in this area is lower still, though - 2.23. That demonstrates that the market is even faster in the higher priced homes.  My belief is that this is the case because those homes - high end homes in the CUHSD - have taken a bigger hit on pricing and buyers are responding.  Cannot prove it in this brief blog post entry, though, but that's my (hopefully educated) hunch. 

What about your neighborhood, or where you'd like to buy?  Get hyper local when you think about how "the market" is.  Feel free to visit my Los Gatos Real Estate Report and see local sales in your neighborhood. Make it more precise by indating the beds/baths you want to consider, and how far out (in a radius) you'd like to see the comps, or how far back in time. Best part: you don't have to register, you don't have to leave a footprint.    (Your search is not saved on my site, so I will not be showing up on your front porch!)  Or call or email me for a confidential, no obligation, no-pressure consultation.

The Silicon Valley real estate market is very much in the buyer's favor right now; in Los Gatos, San Jose, Saratoga, Campbell and elsewhere in Santa Clara County, most homes are not selling at all or only selling after a long time on the market and with several painful price reductions. Prices are falling, year over year,  in most of the valley - Monte Sereno appears to be the only possible exception.

That said, some homes are selling just the same. In Los Gatos, there are 248 houses and condos currently for sale. In the last month in 95032 and 95030, 21 houses and condos have closed escrow and 23 have gone sale pending in the same timeframe. So the percentage of homes selling is a little under 10%.

The question to ask yourself, if you want to sell your home right now, is "what does it take to sell my Silicon Valley home in today's market?"  You might also ask "how can I get the most money for my home in this market?"  What will it take to sell fast and for the best price this market will bear when only ten percent of listed homes are selling in Los Gatos? (It is worse in many other parts of the valley.)

1. Begin By Understanding Market Conditions and Pricing Realities for Your Neighborhood

To maximize your position, it is imperative to begin by understanding today's Silicon Valley real estate market and the real estate market in your home's neighborhood. For years we have experienced a seller's market in which every time a home sold, everyone else's home rose in value. We could price a little high and the market would catch up sooner or later. But not now.

Now, instead, prices are declining and one of the most important things for Los Gatos home sellers to understand is that they need to get ahead of the curve in pricing and be swift to adjust to changing conditions. (Cyberhomes.com puts the Los Gatos 95030 zip code as having lost 5% since last month and 95032 as having lost 3% since last month.)

Two kinds of homes seem to be selling now: completely remodeled homes which are priced well, or homes needing updating and remodeling that are priced at rock-bottom numbers, possibly even below current market value. Average homes with average prices are not selling. Homes priced in the bottom 10-20% are selling. These are the "shiny pennies". They are the homes in which owners understand that "it's a beauty contest and a price war".

There are several places online where you can get  real estate market trends in Silicon Valley as well as home values calculated online. These are automatically generated and do not involve an agent's input. Among them are these:

Silicon Valley Real Estate Report - Recent Listing & Sales Activity (view by map, no registration)
Cyberhomes.com 
Zillow.com

Because precise home valuations involve things that online estimators can't factor in (like school district, the presence of power lines, proximity to positive or negative things), your best bet will be to talk with a knowledgeable and experienced Realtor, who will factor in current market conditions for your exact neighborhood and type of home (historic, view property, etc.).

(To read more on pricing, please read this article on my main website: Pricing Your Silicon Valley Home Competitively and also Benefits of Realistic Pricing.)

2. Clean, Declutter, and Stage Your Silicon Valley Home to Sell

Buyers respond most favorably to homes in which they can see themselves. Too many of your personal effects and it's hard for them to see themselves living there. Getting your home sold today requires depersonalizing "your home" and making attractive and easy for buyers to see as "their home".

Most of us live in a somewhat cluttered way in our homes and yards, and thinning out the extra stuff that won't help to sell your home can be difficult both physically and emotionally. If you hire a good agent early on, he or she will assist you in knowing what is best to keep out and what's best to remove for selling.

Also during this stage, you'll want to get your home and garden into good shape, whether it's sprinklers that aren't working or windows that won't open. Clean and fix!

Sometimes getting through this stage can be overwhelming. Perhaps you'd like a hand? A resource I have used many times is "At Your Service", a concierge service at no cost to you. Karin Doll-Nichols runs this helpful company and she can hook you up with a handyman, a landscape person, someone to assist you in downsizing, you name it. My experiences with At Your Service have been very positive, and the prices are competitive too.

(For more information on this topic, please read Staging Your Silicon Valley Home, an article on my main website.)

3. Pre-Sale Inspections Are The Norm in the West Valley Communities of Silicon Valley

If you are serious about selling you home in Los Gatos or anywhere in Silicon Valley, it's important to also do pre-sale inspections. Depending on what type of home you have (condo, townhome, single family home or large estate), you could need anywhere from two inspections to perhaps a half dozen of them. Most sellers will need to have a pest (or termite) inspection and a home (or property) inspection. (For more information on inspections, please see my post on another blogsite of mine, What Kinds of Inspections and Reports Are Needed For Buying and Selling Homes in Silicon Valley? )

Home inspections often uncover surprises and having pre-sale inspections will enable you to repair or replace defective items, or if they are items you do not want to fix, at least give you the knowledge to counter defects out of any offers that come in. My suggestion is to allow a couple of extra weeks, at least, to do any unplanned repairs prior to the home going on the market. Buyers today are picky but they will write stronger offers if they know the condition of the home they want to buy, and stronger offers still if they feel that any issues are already resolved.

The quality of inspectors you hire can impact your transaction greatly, so I strongly advise that you hire your agent first and get recommendations on good inspectors prior to getting an inspector involved. Good Realtors know many inspectors by reputation or through past dealings and can assist you in hiring those who are reputable, honest, and fair.

 Finally. . .

It will be helpful to view things with the buyers perspective to understand what makes them choose one home and leave nine others behind. As a seller, view your property as being in competition with the rest of the homes. Ask yourself which home would you choose? Which one is the best value?

There are many important issues to tackle in order to not just sell your home, but to sell it for top dollar in the current market. Today we've addressed the initial areas only - this is just the starting point!  Perhaps the best thing you can do is get educated about the process and then hire well. There are hundreds of agents in close proximity so there's no shortage of choice. You can afford to take your time and be picky about selecting an agent who is knowledgeable, experienced, accessible and who will represent you well every step of the way.

If you would like to discuss selling your Silicon Valley home, please call or email me for a free, no cost, one hour consultation. My book, "Get the Best Deal When Selling Your Home in Silcon Valley", is my gift to you when you meet with me. It's a highly helpful resource that can get you started in selling your home.

Los Gatos Home Sales Trends

How's the real estate market in the Town of Los Gatos? The Los Gatos housing market varies from one price point and neighborhood to the next, from one type of housing to the next, and even between the town's two zip codes, 95030 and 95032. Here we'll take a view of the overall movement in the market; please understand that it may or may not apply to your Los Gatos home so please call or email me for specific information relating to your property.

Overall, Los Gatos continues to be a buyer's market, though not as deep as in other places in Santa Clara County. Inventory is rising in both single family homes and in condos/townhomes, which is a typical trend for this time of year.

The market has improved somewhat over a month ago in terms of median and average sales price (the graphs below use a 12 month moving average, but the actual numbers do show an uptick). To view the report for Los Gatos using the actual numbers rather than the moving average, please have a look at my new online Real Estate Report. Below are links to specific pages within it that are most relavent to the readers of this blog:

(1) Single Family homes in Los Gatos
(2) Condos and Townhomes in Los Gatos
(3) The Monte Sereno Real Estate Market (SFH, not enough condos for April report)
(4) Single Family Homes in Saratoga
(5) Condos and Townhomes in Saratoga
(6) Single Family Homes in Almaden Valley
(7) Condominiums and Townhouses in Almaden Valley

How about general trends, using moving averages, in the real estate market for the Town of Los Gatos?

The following chart shows median and average price trends plus sales. The chart uses a 12-month moving average to eliminate any seasonal variation.

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. Here, you can see the uptick in the number of homes sold in Los Gatos.

This chart shows the current inventory of Los Gatos single family homes for sale compared to the number that have sold in the town.

The next series of charts shows the same thing as above but for condominiums and town homes in the Town of Los Gatos.

Please call or email me for specific information on your particular situation
in Los Gatos or anywhere in Silicon Valley.

It remains a buyer's market in Los Gatos, but not as deep a buyer's market as in many other parts of Silicon Valley.

Below please find links to reports on the local Los Gatos housing market, broken down by zip code and housing type, current as of April 28, 2008.  One of the most helpful aspects of the Altos reports is that it breaks the activity down by market quartiles, so that the activity in entry level homes, for instance, is differentiated from the luxury home market. Have a look:

Los Gatos Single Family Homes in 95030

Los Gatos Single Family Homes in 95032

Los Gatos Condos and Townhomes in 95030

Los Gatos Condos and Townhomes in 95032

These are care of Altos Research, which uses list prices (rather than sales prices). In a week or so we'll have the data on solds in Los Gatos from April, care of another subscription I have, the Real Estate Report. Please check back soon to get that information.