We are initiating coverage of the Los Gatos/Monte Sereno real estate market. Each month, we will look at the activity here and discuss developing trends.
In general, the northern California real estate market has been moving toward a more balanced state. For the past few years, sellers have had the upper hand, as buyers aggressively bid on properties, driving prices rapidly higher. The current market is more normal, with buyers being more discerning and willing to take their time.
Looking at the Los Gatos/Monte Sereno real estate market over the past year or two we see a market that has remained fairly steady, with seasonal variations driving most trends. Inventory was at its low in December, then climbed through the spring and has remained somewhat constant since. Pending sales were at their seasonal low in January, then increased through May and have tailed off since then. Prices have held their own as well, with the monthly median sales price staying with a band of $1.9 million to $2.1 million. Monthly median sales prices have averaged about 10% higher than a year earlier.
Median Sales Price
August’s median sales price was $2,098,000, a 19% ($341,056) higher than July’s $1,756,044. July’s price, however, was the low for the year so August just got us back on track. August’s median was also 21% higher than August 2015’s. The sales price to list price ratio in August was 98%, down from 100% in July. The ratio had been at just above 100% for the prior three months. August 2015’s ratio was 100.5%. The price per square foot in August was $886, little changed from $862 in July or $890 a year ago.
25 sales close din August, down from 38 in July. 38 sales also closed in August 2015. The monthly average for 2016 has been 27.
For Sale vs. Pending
156 properties were actively listed at the end of August, up from 137 in July but about the same as in June. One year ago 142 homes were for sale. Pending sales dropped by 15 units in August, from 50 in July to 25 in August. That compares to 43 sales a year ago. Inventory relative to pending sales stood at 4.5 months at the end of August, up from 2.7 months at the end of July and 3.3 months a year earlier.
Days to Sell
The time on the market has changed pretty much along with the seasons over the past year or two, increasing in fall and winter and falling through spring. However, homes are staying on the market a bit longer this year than last. This year, the average time on the market has been 39 days, compared to 31 days for the first eight months of 2015. The average sale in August closed in 41 days, compared to 33 days in July and 46 days in August 2015.
Analysis by Price Range
We will look at the market in three separate segments (homes priced under $800,000, $800,000 to $1.3 million, and $1.3 million-plus). So far in 2016, 27% of inventory and 39% of pending sales have been for homes priced below $800,000. The middle segment has accounted for 45% of inventory and 48% of pending sales, while homes priced at or above $1.3 million have made up 29% of homes for sale but only 14% of pending sales.
In the sub-$800,000 segment, 42 properties were for sale at the end of August, up from 37 at the end of July. 15 sales went to contract during August, nine fewer than in July. Supply relative to sales increased from 1.5 months at the end of July to 2.8 months at the end of August. 27% of Los Gatos/Monte Sereno’s inventory at the end of August and 43% of pending sales during the months were priced below $800,000.
$800,00 to $1.3 million
The $800,000 to $1,299,999 price range accounted for 42% of inventory and 40% of pending sales for August. Inventory increased by ten units in August, to end at 65. Pending sales fell by eight homes to 14 in August. There was nearly an 11 month supply of these homes at the end of August, down from 13.75 months at the end of July.
$1.3 million or over
Six sales of homes priced at $1.3 million or more went pending during August, two more than in July. Inventory increased form 45 at the end of July to 49 at the end of August. Inventory relative to pending sales fell from 11 months at the end of July to eight at the end of August.
Check out these other Real Estate Market Conditions Reports for August 2016: