Month-over-Month Changes

In May 2024, the Los Gatos real estate market displayed some significant month-over-month changes compared to April 2024:

  • Homes Sold: 42 homes were sold in May 2024, representing a 14% increase from the 37 sales in April 2024.
  • Median Sale Price: The median sale price slightly decreased by 1%, from $3,073,295 in April 2024 to $3,037,500 in May 2024.
  • Days on Market (DOM): The average days on market increased from 7 days in April to 9 days in May 2024.
  • Percentage of List Price Received: Sellers received 104% of their asking price on average in May 2024, which is a decrease from 108% in April 2024.
  • Months of Inventory: The inventory increased from 1.5 months in April to 1.9 months in May 2024.
  • Average Dollar per Square Foot: The average price per square foot decreased by 2%, from $1,307 in April to $1,280 in May 2024.

Analysis

The month-over-month data indicates a mixed market sentiment. The increase in homes sold suggests a heightened buyer interest, perhaps driven by seasonal trends or market confidence. However, the decrease in the median sale price and the increase in days on market imply that buyers may be gaining more leverage, possibly due to the slight increase in inventory. The reduction in the percentage of list price received further supports this observation, hinting at potential softening in seller expectations.

Year-over-Year Comparison

When comparing May 2024 to May 2023, several notable changes are observed:

  • Homes Sold: There was a 14% decrease in homes sold, dropping from 49 homes in May 2023 to 42 homes in May 2024.
  • Homes Listed: The number of homes listed saw a decline from 60 in May 2023 to 52 in May 2024.
  • Median Sale Price: The median sale price increased significantly from $2,350,000 in May 2023 to $3,037,500 in May 2024, reflecting a 29% increase.
  • Median Days on Market: There was a slight increase in the median days on market from 8 days in May 2023 to 9 days in May 2024.
  • Percentage of List Price Received: Sellers received 107% of the list price on average in May 2023, which decreased to 104% in May 2024.
  • Months of Inventory: Inventory levels increased from 1.5 months in May 2023 to 1.9 months in May 2024.
  • Average Dollar per Square Foot: The average dollar per square foot saw a decrease from $1,307 in May 2023 to $1,280 in May 2024, reflecting a 2% decline.

Analysis

Year-over-year data reflects a dynamic shift in the market. The significant increase in the median sale price suggests that home values have appreciated considerably, driven perhaps by a combination of demand and limited supply over the year. Despite fewer homes being sold and listed, the price growth indicates a robust market for sellers. The slight increase in days on market and the decrease in the percentage of list price received suggest a slight cooling, which could be attributed to rising prices possibly outpacing buyer capacity.

Price Points and Quadrants

Sales details for May 2024, broken down by price quadrants, provide a detailed view of the market dynamics:

  • Top Quadrant: Homes Sold: 11, Median Sale Price: $4,600,000, Median DOM: 40 days, Average $/Sq.Ft.: $1,277
  • Second Quadrant: Homes Sold: 11, Median Sale Price: $3,303,000, Median DOM: 7 days, Average $/Sq.Ft.: $1,322
  • Third Quadrant: Homes Sold: 10, Median Sale Price: $2,510,000, Median DOM: 9 days, Average $/Sq.Ft.: $1,192
  • Bottom Quadrant: Homes Sold: 10, Median Sale Price: $1,502,500, Median DOM: 9 days, Average $/Sq.Ft.: $897

Analysis

The data indicates robust activity in the top and second quadrants, suggesting a strong demand for higher-priced homes. The significant median sale prices and high average dollar per square foot values in these segments reflect a competitive environment for luxury properties. The relatively short days on market for the second quadrant homes imply a faster sales cycle, highlighting an active segment. Meanwhile, the bottom quadrant, with lower average price per square foot, indicates a more accessible market segment for buyers, potentially attracting first-time buyers or those looking for investment properties.

Conclusion

The Los Gatos real estate market in May 2024 shows a mixed landscape with varied trends across different metrics. Month-over-month data indicates a slight cooling with a reduction in sale prices and longer market times, while year-over-year figures show significant appreciation in home values. Activity in higher-priced segments remains robust, reflecting continued interest in luxury properties.

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