Today I pulled the sales info for our corner of east Los Gatos and thought you’d like to see how the year shook out for the real estate market here. There were 21 closed sales of single family homes in 2018.
The first sale listed above with a closing the first week in January of course went under contract in 2017.
There is also one pending sale which is scheduled to close escrow later this month, but went pending in 2018.
Additionally, there were 3 properties which went on the market but did not sell – they were canceled, expired, and / or withdrawn.
What are the odds of selling success?
The odds were pretty good for home sellers here in 2018: of 24 properties listed in 2018 (not the first sold, but including the pending, 21 total), 88% did sell. This includes the large estate style homes and properties with views as well as fixers and houses on busier roads.
Why is it that not every home sells in a strong seller’s market? Each case is different, of course, just as every seller and his or her property is unique. There are a few usual culprits, though, most often being price, but other challenges can be present as well. You can learn more about why some houses get listed but do not sell on my Valley of Heart’s Delight blog: https://sanjoserealestatelosgatoshomes.com/why-didnt-my-san-jose-home-sell/
What do we expect for the 2019 real estate market?
It’s all about supply and demand. Right now, demand is decent and supply is low. Here’s a look at the inventory of single family homes for sale in recent years by month, first in town and then for the county.
Inventory of single family homes for sale in Los Gatos 95030 & 95032 from Jan 2012 – Jan 2019:
In town (not including the Los Gatos mountains area), Los Gatos has extremely low inventory. I ran the numbers and this is lower than any other January since 2002, the longest back that the MLS will let me go. Locally, that bodes well for those looking to sell in Los Gatos. (Currently there are NO homes for sale in the Belwood, Belgatos, Surmont, or nearby areas of LG.)
What about the broader area? Most of the county has looser inventory than we do in LG. Have a look:
Inventory of single family homes for sale in Santa Clara County Jan 2012 – Jan 2019:
I think it is really important to view this month’s inventory for the county not just in relation to January 2018 (“inventory is up 8% from last year, oh no!”) but in the context of all the recent years since we’ve been in recovery from the Great Recession. Yes, inventory IS up from last year for Santa Clara County, when the first 6 months of 2018 saw prices shooting up like a geyser due to highly restricted inventory and ongoing demand. Most of 2017 and early 2018 were off-the-charts into overdrive. From early 2012 through 2016, we had a market that was appreciating at a good pace – too fast for some buyers, who opted to become permanent renters rather than to participate. Current inventory levels are very low relative to 2012 and later.
A return of some of the normal patterns?
Inventory tends to rise throughout the first half of the year, so I am expecting that to happen again in 2019. To the left, see a chart displaying the inventory of homes for sale in Los Gatos 95030 & 95032 from Jan 2016 to today. This is a pattern we usually see – though of course, it’s not a rule, and it can change.
Prices also tend to rise in the early part of the new year as inventory does not keep pace with demand, and I see no reason why that would not happen again.
Equally important is to understand that in the 2nd half of any given year, prices often soften. Home sellers sometimes believe that “summer is the right time to sell”, so get their homes on the market then. But activity from buyers slackens after the spring buying season, so in many years, inventory is higher than demand – so prices level off or even decline.
In 2018, prices in LG and the county did decline dramatically from the spring peaks, perhaps in the 12-15% range, generally.
Economists tell us that they expect the first half of 2019 to be decent to good, but not as wild a ride as early 2018. (Milder appreciation, 3-5%?) Some believe that the second half of 2019 will be much softer. A real estate correction is expected sometime between now and 2-3 years from now. We do believe that locally, in Silicon Valley, we are at or near the top of this real estate cycle. For those wishing to sell and move out of the area, 2019 could be a good year in which to do that. It’s impossible to pinpoint the exact top or bottom of the market, though. That is something we only know when it’s passed, just like with the stock market.
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
How’s the real estate market for the Belwood of Los Gatos, Belgatos and Surmont neighborhoods of Los Gatos? Today I present some detailed views of the state of the real estate market in 2012, viewed from several angles. This is a lengthy article, but one I hope my neighbors and would-be neighbors will find very helpful.
Inventory was low across all of Los Gatos and Silicon Valley, and turnover in this corner of east Los Gatos 9part of the 95032 zip code) is never high, so it’s not surprising to learn that a mere 13 houses sold over the last year. Most home owners would like to know whether values are rising or falling, how tough it is to sell a house, and whether or not homes are selling over the asking price. We’ll have a look at these questions, and more, using graphs I created from our local real estate multiple listings provider, MLSListings.com.
There were 13 closed sales in Belwood, Belgatos and Surmont plus 4 houses that did not sell in 2012
There were 13 sales of houses in 2013 – not too many for a neighborhood with more than 300 houses! There were four others which did not sell, however. One is currently for sale, and 3 more are cancelled, expired, or withdrawn. In every market, no matter how “hot”, some homes do not sell. This is important to remember. Too many home owners get euphoric about the sales prices and multiple offers which they hear about. What’s usually not considered is the “market rejection” that other properties get. It is a sobering balance to the multiple offer frenzy stories which one hears.
This first graph displays the closed numbers of sales by price point. This is helpful not just for sellers, but home buyers interested in purchasing here. Last week I got an email from a resident of Santa Clara County indicating a desire to see properties here with 2200 square feet or more available at under $1,000,000. Is that possible? Let’s see.
In the graph above, we find that three properties sold here between $800,000 and $1 million. We do not yet know from the data anything more about the houses, whether they were small, big, regular sales or distressed properties. A quick look at the MLS just now shows that all of the sold houses were regular sales except one, a short sale on Belwood Gateway which was in that lowest pricing tier (and which took about 2/3 of a year to sell).
Days on market or average days to sell in Belwood, Belgatos and Surmont area
Next, the average days to sell (meaning to have an accepted purchase offer or contract) for the houses on the market that did sell – not all of those offered in 2012 were purchased! (In every market, there are homes that do not sell. Most of the time it is because they are overpriced.)
From the time the house is showing on the MLS as active or available, how long until there was a ratified contract? In most cases, not long at all. For the lowest price group, the average days to sell is badly skewed by the short sale on Belwood Gateway – that one took 213 days to sell due to transactions falling through and the difficulties of getting a distressed property closed. When I eliminate the short sale from the mix, the average days on market for the other 12 properties was a very fast 17. The longest was 66 and the shortest was 2. The graph below shows the days on market of all sold houses by price point. Although it appears that the least expensive homes are the hardest to sell, that’s not really the case. The short sale tilts the average.
Average list prices of Surmont, Belgatos and Belwood homes that sold in 2012
What about home values and pricing? Below, please find the average list price of properties by month. For most of 2012, the majority of houses for sale ranged between one million and $1.4 million. There are higher and lower priced properties, of course, but this range gives home buyers a general sense of area values for typical homes. Newer one, view lots, extra large homes or custom built properties will cost more. Houses on Blossom Hill Road, older homes, properties needing extensive renovation etc. will sell for less. Have a look: Continue reading