Month-over-Month Changes

The Los Gatos real estate market experienced significant shifts from December 2023 to January 2024, reflecting the dynamic nature of the local housing landscape. Here’s a detailed breakdown of the changes observed:

  • Homes Sold: The number of homes sold in January 2024 was 8, a substantial decrease of 62% from 21 sales in December 2023.
  • Median Sale Price: There was a 13% decrease in the median sale price, from $2,575,000 in December 2023 to $2,250,000 in January 2024.
  • Days on Market (DOM): The DOM for homes decreased to 30 days in January 2024 from 37 days in December 2023, indicating a faster selling process.
  • Percentage of List Price Received: Sellers received 96% of their asking price in January 2024, slightly down from 98% in December 2023.

Analysis

The month-over-month data suggests a cooling in the Los Gatos market, with fewer homes sold and a decrease in the median sale price. The reduction in DOM, however, indicates that while fewer transactions occurred, homes that did sell moved relatively quickly. The slight decrease in the percentage of list price received suggests a shift towards a more buyer-friendly market.

Year-over-Year Comparison

Comparing January 2024 to January 2023, the Los Gatos market shows notable changes:

  • Homes Sold: A dramatic decrease of 53%, from 17 homes sold in January 2023 to 8 in January 2024.
  • Median Sale Price: The median sale price saw a significant drop from $3.55M in January 2023 to $2.25M in January 2024.
  • Days on Market: The average DOM increased from 56 days in January 2023 to 30 days in January 2024, showing a faster sale process despite fewer transactions.
  • Percentage of List Price Received: There was a decrease in the percentage of list price received, from 99% in January 2023 to 96% in January 2024.
  • Months of Inventory: Increased slightly from 1.7 months in January 2023 to 2.0 months in January 2024, indicating a slight increase in available inventory.

Analysis

Year-over-year, the Los Gatos real estate market has seen a contraction in both the number of homes sold and the median sale prices, suggesting a cooling trend. However, the faster sales process (lower DOM) and the slight increase in inventory might offer more opportunities for buyers.

Price Points and Quadrants

The January 2024 sales data, broken down by quadrants, reveals insights into which segments of the market are most active:

  • Top Quadrant: 2 homes sold, Median Sale Price: $4,262,500, Median DOM: 20, Avg. $/Sq.Ft.: $1,440.
  • Second Quadrant: 2 homes sold, Median Sale Price: $2,810,000, Median DOM: 19, Avg. $/Sq.Ft.: $1,118.
  • Third Quadrant: 2 homes sold, Median Sale Price: $2,200,000, Median DOM: 87, Avg. $/Sq.Ft.: $1,210.
  • Bottom Quadrant: 2 homes sold, Median Sale Price: $995,440, Median DOM: 48, Avg. $/Sq.Ft.: $404.

Analysis

The distribution of sales across the quadrants in January 2024 indicates a balanced market activity across various price points. The top quadrant, with the highest median sale price and a relatively low DOM, suggests that higher-priced homes continue to attract buyers, albeit with a limited number of transactions. The significant DOM in the third quadrant indicates that while homes are selling, it may take longer for transactions to close in certain price segments.

Conclusion

The Los Gatos real estate market in January 2024 has shown a decrease in activity compared to the previous month and year-over-year, with notable declines in homes sold and median sale prices. However, the market dynamics, including the distribution of sales across different price quadrants, suggest ongoing interest across a broad spectrum of price points. As the market continues to evolve, understanding these trends will be crucial for both buyers and sellers navigating the Los Gatos real estate landscape.

Data provided by MLS Listings and is deemed reliable but not guaranteed.