The State of the Market in Los Gatos

According to the Live in Los Gatos real estate blog, sales prices are actually up substantially over last year.  The median sales price in October was up by 13.7% over last year, and the average sales price showed a 21.5% climb.  However, if you look at the number of homes sold, this has dropped by 60.6%!  

These two indicators tell us that only more expensive homes are moving, perhaps because home owners are riding out the storm before selling or because the lower end homes are less likely to move. 

The absorption rate for single family homes, or months of inventory, was at 7.24 for October.  Anything above 6 indicates a strong buyers market.   Interestingly enough, this blog also points out that the absorption rate for condos is now 2.42 – showing that this market is now healthier than the single family home market.  This is probably due to the number of new homeowners hungry for a prestigious Los Gatos address.  

If you own a condo in Los Gatos, now would be an excellent time to move up to a single family home.