What’s going on with the real estate market in the Belwood, Belgatos, Surmont, and nearby areas of east Los Gatos? Here’s a quick update of the year to date listings and sales activities, taken from the MLS.
Right now, there are 6 properties for sale in the neighborhood. That’s more than what has been normal in recent years. The stats for these active listings are as follows:
Average list price $2,286,333
Average square footage 2,906
Average lot size 16,194
Average days on market 19
Average price per SF $800.92
Average age 49
There is only one pending sale, and no properties at all in the area which closed in June. We had steady rate of sales closed earlier in the year: three in February, two in March, five in April, two in May.
For those tracking the absorption rate, which is the rate at which homes would sell if no new properties come on the market, this is a bit of a surprise. Zero homes (sold / closed in the last 30 days) divided by 6 active listings = an infinite months supply of inventory. Of course, it is not truly that dire, since there were 2 closings in late May and there’s one pending sale (went into contract June 15), but it does suggest that home buyers may have put the brakes on.
We are seeing this drop in sales activity across the valley in many areas, so it’s not just this corner of 95032.
Is it just a big rise in inventory that is causing the market to stall out a little? In some areas, homes have continued selling at the same pace, but with fewer offers over the last 6 weeks or so. Those areas may not have had as large an inventory jump as we have seen on the east end of Los Gatos.
Here’s a look at the inventory for single family homes for sale in 95032 with Campbell Union High School District (so Leigh or Westmont High) from July 2012 to July 2018.
Inventory is up, but not to an unprecedented degree. There were more in June, and June’s inventory was not too different from most of the recent years (2014 and forward).
A holiday week is often slow, so I would encourage people thinking of selling to not get discouraged. Part of what we are seeing could simply be a seasonal trend – summer is normally a bit of a “slowdown” period in real estate, with things picking back up again in early to mid September. Last year we did not see seasonality at all, as the market was raging hot through December.
If you are interested in buying or selling a home in east Los Gatos or anywhere in Silicon Valley, please reach out to me and we’ll find a time to talk and see if we might be a fit for working together.
The Belwood of Los Gatos, Belgatos, Surmont, and contiguous neighborhoods in east Los Gatos saw strong appreciation in 2017. With a low amount of available real estate inventory and high buyer demand, properties listed under $2 million often saw multiple offers and good overbids. Over $2 million, the market was cooler, but still not too challenging to sell if done right.
Early 2017 was a bit sluggish, with homes taking longer to sell and recording under list price through February. These homes were priced on the higher end for homes in the area, and they were selling during the typically cooler winter months, both of which might have contributed to the slower turnover. By March the market was heating up again with the large majority selling above list price (likely multiple offers) in under a month through to the end of the year. The three that took longest to sell (from March through November) also sold below list price.
Below is the chart of all home sales in the Belwood & adjoining area listed on the multiple listing service for 2017 organised by date descending oldest to newest. DOM stands for “days on the market”. (There was one off-market or private sale of a 1400 SF house on Bacigalupi for $1,250,000 that is not included. It appears to have been a fixer upper.)
Most challenging to sell are the luxury tier properties offered at $3 million or more. In 2017, the house with the longest days on market was in this category. This is normal for the luxury market in east Los Gatos.
In summary, through most of the year there was high demand and quick turnover for homes in the Belwood area in moderate price points. These fast moving homes provide approximately 3-5 bedrooms and list in the price range of %1.5 to $2 million.
If we remove the luxury tier home, a profile of homes sold in this area in 2017 would be along these lines:
Average list price: $1,719,144
Average sale price: $1,758.263
Average square footage: 2316 SF of living space
Average age of home: 42 years
The last couple of months in 2017, prices began shooting up with the news of Google’s expansion into downtown San Jose. The ripples were felt through Willow Glen, Cambrian, and into Los Gatos. What sold for $1,750,000 in the middle of 2017 is likely to sell for significantly more in 2018.
If you’re interested in buying or selling a home in this beautiful corner of Los Gatos, please reach out to me and we can have a confidential and no-obligation conversation / consultation.
Come home to a stunningly remodeled Belgatos view home, and enjoy sweeping vistas of Silicon Valley from all the main living areas of the home! 211 Westhill Drive, Los Gatos, is offered for sale at $2,288,000 and features 4 bedrooms and 3 bathrooms. 3112 SF of living space: 2856 Square Ft (appx.) + office (appx 256 SF) on a lot of 13,939 SF. So many extras, such as solar power, dual pane windows, plantation shutters, fan lights, but above all, a scenic setting, a comfortably large house, in a great Los Gatos neighborhood next to Belgatos Park.
Below is a sampling of photos – please see ALL images and detailed info on the virtual tour site:
Open house schedule: Sept 9 and 10 from 2 – 4 pm, Wed Sept 13 9:30am – 12:30pm, and Saturday Sept 16 2-4. Please stop by!
This house was thoughtfully designed with the living room, dining room, kitchen, and family room all enjoying the views. The bedroom wing is tucked behind the octoganally shaped living room, and they overlook the yard and pool.
Beautiful Brazilian cherry hardwood floors grace the living areas, hallway, and bedrooms, creating a clean and contemporary feel to the home.
Plantation shutters, dual pane windows, lovely crown and baseboard provide a timeless feel.
The kitchen is open to the family room and includes stainless steel appliances, slab granite counters, and a vaulted ceiling with recessed lights. Not shown here is the breakfast nook and pantry, which look toward the resort like back yard.
The heart of the home, the family room is drenched in natural lighting with windows on both sides.
Your own private resort! In addition to the pool and patio area, there’s another patio and planting bed area along the right side of the house. Previous owners had used that area as a sports court. There are many possibilities to utilize that space!
Please see the virtual tour for more details and all photos: http://www.tourfactory.com/1838948
Neighbors often want to see an update on the immediate neighborhood and sale prices of houses that have sold and closed escrow. Here’s a current snapshot of the real estate market in Belwood, Belgatos, and Surmont (and adjacent to the contiguous neighborhood).
View photos and get the details on MLSListings.com here:
In addition to these closed sales, there are 2 in various stages of “under contract”, and there was 1 duplex sold earlier this year, too.
Interested in buying or selling a home in the area? Please reach out to me with an email or a phone call.
Looking for a turnkey home and yard with plenty of space? One with understated style and a comfortable elegance? The home at 127 Belhaven Drive in Belwood of Los Gatos is remodeled top to bottom and move-in ready! It will be on the Multiple Listing Service and ready to be seen on Monday, February 15th., and is offered at $1,650,000.
The house includes 2448 square foot of living space with 5 bedrooms + ground floor office (could be converted to bedroom if needed), 3 full baths (one on first floor), and all the living spaces you could want: living room, dining room, kitchen with oversized nook, separate family room, and a garge decked out as an entertainment center with a kid-friendly focus. Throughout the home there’s a perfect blending of traditionally loved items like hardwood floors, crown molding, baseboard, French doors, plantation shutters, built in cabinets together with much loved contemporary elements like skylights, dual pane windows, recessed and energy efficient LED lights, insulation, an encapsulated crawl space, and of course remodeled kitchen and baths.
With 10,760 square feet, the nearly level lot has room for everything. The yard has been professionally designed and landscaped and may well steal your heart! A big sandbox and amazing, custom built playhouse may well seal the deal! Extra storage in the side yard, a view of the hills from the expansive front porch – what more could you want?
All of this comes just 3-4 blocks from the side entrance of Belgatos Park. This charming home is part of the Belwood HOA, which provides a lovely cabaña, pool, and community events. The nearby Harwood Square Shopping Center includes a good sized Walgreens, Los Gatos, Pizza, Starbucks, and more.
Excellent schools, too: Noddin Elementary, Union Middle, and Leigh High.
Please stop by one of our open house events:
- Wednesday, February 17th 9:30am to 12:30pm (broker open but also public open house)
- Saturday, February 20th 1:30 to 4pm
- Sunday, February 21st, 1:30 to 4pm
Disclosures will be online soon. Offers due Wednesday, Febrary 24th by 11am please.
Want more details? Please see the lengthy list of features here:
Or see the Virtual Tour here : http://www.tourfactory.com/1468742
Of the homes first listed for sale in the Belwood of Los Gatos, Belgatos, or Surmont subdivisions in 2015 so far, only one did not selll (it was pulled off after a month, which is about the time when a price reduction would likely be getting discussed). One other is currently under contract (contingencies are in place) and five homes have been sold and closed.
Overall, houses in this neighborhood have gone pending fairly quickly, with the average days on market being a brisk 9 for the five closed sales. Homes sold so far are all selling over list price, and the average amount over is about 3% ($38,000).
(There was one other closing on Bacigalupi in January from a sale in December that I did not include since I was looking for sales that were ratified in 2015, but that home had 2448 SF and closed at $1,525,000 fyi.)
The odds are good that you could sell a home in this area without too much trouble in most cases. In every market, though, there are some homes that don’t sell or do not sell quickly. To learn more about that situation, please visit my Valley of Heart’s Delight blog and read this article:
Today I’m working on an article for another blog of mine on the topic of saving for a down payment and residential real estate appreciation in Silicon Valley. Long story short, right now, home buyers cannot save as fast as the home prices are going up. For some, the saving effort is to get to 20% down or more. For others, the goal is to buy all cash. In both cases, though, the danger is getting priced out of the market while the would-be home owner is putting away money. For people who wanted to buy 2 years ago but decided to wait and save, that now means either not buying at all or buying in less nice home or area than they were targeting.
This is certainly true for home buyers wanting to get into Belwood of Los Gatos and nearby. Let’s look at our corner of Los Gatos and take a sampling of what has happened since 2000 (a “boom year”) for a typical 2400 square foot house on a typical 9,000 to appx 10,000 square foot lot (in Belwood, Belgatos or Surmont). For this, we will consider homes sold in 2000 and homes sold within the last 12 months. I ran the numbers this afternoon on MLS Listings, our local multiple listing service provider.
1-1-2000 through 12-31-2000: a home of about 2400 SF on a 9,000 – 10,000 SF lot averaged a sale price of $860,000 (prices ranging from a low of $750,000 to a high of $950,000). A 25% down payment would have been $215,000 and the loan amount would have been $645,000, using that average number. Many buyers would have purchased with 20% down, and some with 30% or more, though.
Fast forward to today and the last 12 months leading up to today – approximately 15 years later.
6-9-2014 through 6-9-2015: same sized home and lot averaged a sale price of $1,512,000 (prices ranging from a low of $1,350,000 to a high of $1,660,000). This does not include pending sales, of course – just those which have closed escrow.
Home prices have almost doubled in that time. Continue reading