The Los Gatos real estate market for houses, duet homes, condos and townhomes is much better now compared to a year ago. Generally, it is close to balanced for the 95030 and 95032 zip codes, but within the boundaries of the town of Los Gatos (please note that it is not a city, but a town), there are many variations on how "the market is".
Depending on which part of the market you're interested in, it could be a buyer's market or a seller's market. I'll provide you a few examples and some basic data here using absorption rates or months of inventory, which explains how fast homes are being bought up. (Active inventory divided by homes sold in the last month = months of inventory)
Absorption Rate for Houses in Los Gatos
Entire town: Right now, there are 162 houses for sale in the town of Los Gatos (zips 95032 and 95030) and 37 have sold in the last month. The "months of inventory" is 4.38. (Six months is balanced, more is a buyer's market and less is a seller's market.)
95030: 63 for sale, 9 sold in the last month, so months of inventory for these houses is 7 (buyer's market).
95032: 99 for sale, 28 sold in the last month, so 3.54 months of inventory (seller's market)
Absorption Rate for Condos & Townhomes in Los Gatos
Entire town: 50 for sale, 10 sold in last month, 5 months of inventory (close to balanced but a seller's market)
95030: 6 for sale, 0 sold in last month - infinite months of inventory (deep buyer's market)
95032: 44 for sale, 10 sold in last month - 4.4 months of inventory
These numbers can be further refined by any number of variables, such as sale type (regular, short sale, bank owned), price point (luxury home, move up home, entry level home), acreage, school district, etc.
I've written many "market posts" on my Live in Los Gatos blog and have found that short sale and bank owned homes (there are almost none in Los Gatos) sell very fast (very short months of inventory), regular sales are pretty good in entry level housing to move up. Luxury homes are not selling so well, though and in fact are the hardest segment of the market to sell right now.
If you'd like more info...
A couple of days ago I did a post on my Live in Los Gatos blog and outlined the difference between these four areas and home types in & near Los Gatos:
(1) Houses in Los Gatos 95030 and 95032, Houses in Monte Sereno 95030, and Houses in the Los Gatos Mountains 95033
(2) Condominiums and townhouses in Los Gatos 95030 and 95032 (no condos in Monte Sereno or in the LG Mountain areas)
Please call me if you'd like personalized, local information. I live and work in Los Gatos and am a Santa Clara Valley native and consistent top producer.