You’ve probably heard that home prices in Silicon Valley generally and Los Gatos specifically peaked earlier this year and have been coming down significantly since then.
How is the market today in our corner of Los Gatos with Leigh High School? Here’s a breakdown of single family home sales in the last 90 days, broken into 4 pricing tiers, starting with the most expensive homes. (I crunched this myself on the MLS tonight.)
It’s interesting too note that most homes are about 50 – 60 years old. Lot size and home size are the main drivers within these parameters. The home’s condition makes a big difference, of course. Properties that are in original or fixer condition will sell for a lot less than those which have been fully or largely remodeled.
If you focus on the sale price to list price ratio, it looks like the hottest segment of this market is in the low $2 millions.
Also curious to me is that the bottom 3 tiers rise in terms of home and lot size and price at an almost predictable pace, while that upper tier is out in the stratosphere by comparison.
Thinking of downsizing?
This info is also interesting if viewed through the lens of someone who may be ready or interested in down sizing. If your home about 2500 SF on a 10,000 SF lot and you’re thinking of “right sizing” to a 1500 SF home on a 6,000 to 8,000 SF lot, how does that shake out? Perhaps your current home would sell for $1.8 to $2 million if all fixed up / remodeled and so on. The replacement home, if you were to stay here in Los Gatos, would be perhaps $1,500,000. After paying off any mortgage balance, closing costs, and capital gains taxes, is such a move worth it? Perhaps not.
If you go across the border to Cambrian for downsizing, that 1500 SF home on a smaller lot will run about $1.3 – $1.5 million today, depending on lot size and condition. Again, that’s probably not a steep enough drop to make it worthwhile for most people after all the other costs are factored in. Hence, may retirees move to places like Sacramento (or nearby: El Dorado Hills, Roseville, etc.), San Luis Obispo, or perhaps where grown kids and grandkids live, if they have been priced out of the market here.
Interested in buying or selling a home in east Los Gatos (or anywhere in Santa Clara County)? Please shoot me an email and we can set up a confidential, no obligation consultation.
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