The Los Gatos real estate market is heating up, particularly in the homes that are most affordable (and featuring Los Gatos Schools) but noticeable in many areas and price points.

Below please find a graph displaying prices and sales (median and average) for single family homes in Los Gatos.  This graph uses a 3 month moving average to level out any odd bumps in the data such as seasonal fluctuations.
 

(image from www.PopeHandy.ReReport.com, a subscription service of mine, and used by permission)

The actual (not seasonally adjusted) "months of inventory" in Los Gatos looks even more dramatic.  Below, find the absorption rate for not just Los Gatos, but also Monte Sereno, Saratoga, Cupertino, and the average of all four:

When looked at together, the overall trend becomes exceedingly clear that the market is changing.

Sellers, the market is better now than it's been in many months.  If your home is not getting activity, it's time to get it in line with the market.

Buyers, it's still in your camp in many markets, but your advantage seems to be slipping. 

No one knows whether the market will continue along this trend or if this is just a blip in the Silicon Valley real estate market landscape.  The threat of more foreclosures throughout Santa Clara County will be the thing which can tip this one way or the other.