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.

In addition to doing a post comparing Los Gatos, Monte Sereno, and Saratoga today, I also did one on just the Monte Sereno real estate market in my other blog at ValleyOfHeartsDelight.com. If you are tracking the Monte Sereno housing market, please have a look at this article, which discusses the days on market, inventory level, percentage of homes relisting, and pricing trends.  Find it on the ValleyOfHeartsDelight.com site or click directly on this link:

Monte Sereno: How’s the Market?

As noted many times in this blog about Los Gatos real estate, the market is varied from one price point and school district, among other things, to the next.

The homes in the lowest price points and "in the schools" seem to be selling faster.  For today's view into the market, let's consider homes in Los Gatos, with Los Gatos Schools, with 3 bedrooms and 2 bathrooms, priced at under $1,500,000.

The days on market or "DOM" for all pendings is a misleading number of almost 100 days. If the average DOM is 100, buyers can take their time, right?

But let's have a closer look and sort the results. If we pull the data apart by the date of the sale (when buyers and sellers agreed on price and terms), a different picture of the market emerges. The average DOM now is 1/3 of what it was for the current pendings PRIOR to June 1st!

While some homes are not selling too fast, the pace appears to be quickening dramatically. It may be awhile before this is seen in the sold data, but it's very much a "real time" snapshot of the market activity now.

Sellers, if you get your home into great shape and price it aggressively, you may be able to sell your home so fast that it will shock your neighbors.

Buyers, if you are trying to purchase a home that falls into this segment, it's important to see homes that interest you quickly now, since they may not last a week or two.

If you'd like more information on data pertaining to your home or the type of home you'd like to buy, please contact me.  We can set up a meeting and go over the information that matches your own situation.

(Numbers by our MLS, MLSListings.com. Data exported, sorted and crunched by Mary Pope-Handy.)

Countywide, prices are marching upward! It is a HOT seller's market in the lower price ranges of Silicon Valley, especially if a home is not a distressed sale. Rising prices bring a cooler market in most areas and price points, though.

Los Gatos is a mixed bag too. Lower priced homes "in the schools" are selling nicely. Although it's more challenging to sell higher priced homes, there are quite a few homes over $2,000,000 which are sale pending. 

Below please find a snapshot of the statistics for closed sales of single family homes in Los Gatos for May 2009:
 

To get the whole story on Los Gatos, Monte Sereno, Saratoga, San Jose and all of Santa Clara County, both condos or townhomes and houses, please visit my online Real Estate Report:

Los Gatos real estate for May 2009
Monte Sereno real estate for May 2009
Saratoga, CA real estate for May 2009
Cambrian Park real estate for May 2009
Almaden Valley real estate for May 2009
Cupertino real estate for May 2009

As always, please remember that the market really is a collection of smaller markets. What's happening in one part of town or price range may not be happening in your home's area or price point. Please contact me for assistance in understanding the market you're most interested in.

The Silicon Valley real estate market is picking up, but we are primarily seeing that in entry level housing in more affordable areas of San Jose such as Cambrian Park, Blossom Valley, and South San Jose.  In Los Gatos, Monte Sereno and Saratoga, it's still a tough time for selling a home.

Luxury condos have been hard hit too since people who could buy an upscale townhouse may instead opt to simply buy a house in a less expensive area. 

Below please find a graph displaying the aborption rate of both single family homes (houses) and condominiums and townhouses in Los Gatos.  This measurement is the relationship between available inventory and homes which sold and closed escrow that month. (For instance, in March in Monte Sereno, there were 36 homes for sale and just one closed escrow - my listing on Francesca Court - so that makes for 36 "months of inventory".)

Six months of inventory is considered neutral. Less than six months is a sellers market. More is a buyers market.  As you can see, we have been in a deep buyers market in Los Gatos for awhile.

What is the opportunity here?  This is actually a great time for people to "move up" because the lowest priced homes are moving and the higher priced homes are a bit stalled out. 

If you would like more data, I invite you to visit my Silicon Valley Real Estate Report online to get all the stats available for Santa Clara County.  Below, please find a few quick links:

Market data and statistics for:

• Los Gatos condos and townhomes
• Los Gatos single family homes (houses)
   
• Monte Sereno homes (no condos)
   
• Saratoga condominiums and townhouses
• Saratoga houses (single family homes)
   
• Cambrian Park condos and townhomes
• Cambrian Park single family homes

And many more areas: Almaden Valley, Campbell, Santa Clara, Cupertino, Willow Glen, and all of the cities and areas in Santa Clara County.

Please contact me if you'd like more information on your particular circumstances, whether buying or selling here in Silicon Valley. I'd be happy to talk with you.