Silicon Valley has a bifurcated market, and has for many months now. Some areas are hot sellers markets. In other areas, you can't seem to give away homes. 

What about Los Gatos?

The market is cooler than is seasonally normal.

Last week I did some serious numbers-crunching at my Live in Los Gatos blog. You can see the data there:
http://www.realtown.com/LiveInLosGatos/blog/los-gatos-homes/hows-the-los-gatos-real-estate-market

And for even more info, see my Real Estate Report, which details info on the whole of Santa Clara County, including San Jose, Los Gatos, Saratoga, Monte Sereno, etc.