What is happening in the Los Gatos Mountains?

 

Like everywhere else in the real estate market, the numbers of home sales in the mountain area are off a bit. At the top of the market in 2006 there were 103 sales in the area. That dropped off in 2007 to 89 sales. The sales through eight months of 2008 are at 42, which projects out to 63 sales for the year. This may be a little conservative as there are currently nine pending sales and we have two more good sales months in the mountains.

 

The average sales price took a hit from 2006 to 2007, going from $1,005,000 in 2006 down to 928,000 last year. This year’s drop has been much less dramatic, going to $910,000 for the first eight months. So far there have not been a lot of foreclosures in the area. Currently there are two of short sales on the market and a couple of bank owned properties. That is certainly a lot less than some areas of both Santa Clara and Santa Cruz counties.

 

Probably the best news on the statistical end of things is the sales price percentage. Homes in the mountains are selling for 95.4% of the final list price. At the top of the market in 2006 and in 2007 they were selling for 96% of the listed price. Another area that has actually improved this year is the average number of days on the market. In 2006 the average length of time was 104 days. That jumped up to 138 days last year, but has gone down to 129 days so far this year. Both of those statistics show that if a home is well priced it will sell in a normal amount of time for pretty close to price.

 

Anyone not used to working in the mountains might look at the marketing time and think that is a long time. Agents who have worked in the mountains for years will tell you that four months is a normal marketing time in an average year. In the best of times there are fewer buyers who want to trade a half hour extra commuting for clean air and privacy. That translates to a longer marketing time for rural properties. Those that do move there love the area.

 

One of the quirks in the mountains is schools. Much of the area is served by local elementary school districts with great test scores. These then feed in to Los Gatos High which scores in the high ninetieth percentiles in test scores each year. The combination of a Los Gatos mailing address and the quality schools keep the values high for the area. In the areas served by other schools prices are a little less. Another quirk is that the mailing address and school district boundaries do not stop at the county line. There are homes with Los Gatos mailing addresses and Los Gatos High School in Santa Cruz County.

 

If you are looking at properties in the area, make sure to use an experienced agent who knows the schools and services for the mountains. It makes the home buying and selling experience so much smoother. 

 

Chris Morris

408.357.8783  direct

408.505.1111  cell