We have some encouraging news for the city of Los Gatos, home prices are up from last month! With all the economic forecasts of expected home sale price drops, it’s encouraging to see that our little city in Silicon Valley is holding steady. In fact, both single-family homes and condominiums/townhomes saw increased sale prices and a decrease in the number of days it took to sell a home, month over month. That’s great news for homeowners and important for home buyers to be aware of when making an offer.
Los Gatos Single-family Home Sales in November
For single-family homes, we saw the median sale price for the city of Los Gatos jump 4% from October to November. November’s median sale price for Los Gatos is now at $2.6M, which is higher than October’s median sale price of $2.51M and just under last year’s median price in November 2021 of $2.65M. See the chart below for more details.
Los Gatos Townhouse & Condominium Home Sales in November
For townhomes and condominiums, we saw the median sale price for the city of Los Gatos jump 6% from October to November. There were only 4 homes that sold in November, so the data may not be as statistically valid, but it is consistent with the trend of the market. November’s median sale price for Los Gatos is now at $1.47M which is far higher than October’s median sale price of $900K and slightly edges over last year’s median price in November 2021 of $1.41M. See the chart below for more details.
Los Gatos Market Trends - is There a Slow Down?
Typically in late fall, we see prices dip a little bit due to seasonality, but this year we have so few homes available for sale compared to the number of buyers looking to purchase a home, that despite rising interest rates, home prices are holding steady and actually up since last month. It comes down to supply vs demand, and when supply (home inventory) is low and demand is high, we see increased competition. For example, if we compare November 2022 with November 2021 for single-family homes, we have 38% fewer homes listed for sale (26 in 2021 vs only 16 in 2022).
Have home buyers slowed down? The answer is definitely yes! We don’t have the crazy high demand we had earlier this year, and there are many home buyers that have hit “pause” in their home search. The hesitation to buy a home in this market is due to many factors related to the economy, job security, fears of a looming recession, and on and on. But even despite those on “pause”, there are still people that need housing, and those that need to sell their homes.
So that brings us to the next point and that is that pricing a home properly for this market is key. Home buyers are looking for value, and will wait until they find it. Unlike in the recent past, we see many more price adjustments where homes start out a little too high and then need to be adjusted if it’s not selling as quickly as the norm of the market. The good news is that on average, sellers in Los Gatos are still receiving approximately 100% of their asking price and we continue to see multiple, competing offers on some homes.
Bottom Line for Los Gatos Housing
In summary, if homes are priced well and have characteristics buyers are looking for (good location, open concept floor plan, etc), homes are still selling quickly, oftentimes with multiple offers, and at very close to the list price.
If you’re interested in understanding more about home price forecasts for 2023, please check out my blog here. If you are curious how this market has affected your home’s value, you can get an instant valuation here, or just reach out if you’d like a more in-depth comparative market analysis by clicking here.