Sellers in Los Gatos continue to have the upper hand in market negotiations since the demand for Los Gatos real estate continues to exceed the supply. As such, 2022 is a prime time to list a Los Gatos home for sale, given the overall average number of monthly listings from March 2020 to February 2022 is 52 (with the average for 2021 even lower, at 48). While there are spikes and lows in available listings depending on the month, inventory in Los Gatos remains limited. With high competition in play among buyers, well-appointed properties stand out easier and tend to encourage higher offers.

People listing Los Gatos real estate for sale should note that the time period from listing to closing had a median between 15 and 84 days from March 2020 through June 2021. However, the median number of days on the market rose from 101 to 254 between July and December 2021, the longest length of median days on the market seen in the last five years. The length of time on the market fell to a median of 125 days in January 2022 and to a five-year low of 8 days in February 2022. In looking at the previous medians of 8 and 15 days, it is entirely possible for properties to move very quickly, which bodes well for sellers that desire to close soon after listing.

 

Buyers of houses for sale in Los Gatos should note that it’s rare for there to be above 90 homes listed per month based on data from March 2017 to February 2022, so Los Gatos real estate inventory remains quite low. Given the lack of inventory, buyers should be unsurprised if they need to submit offers on several properties over the course of a few months before their offer is successfully accepted. It’s recommended that buyers start looking at Los Gatos properties as soon as they have an idea of what they want and the funding to secure it. Since homes for sale in Los Gatos have been known to move very quickly, working with an experienced, well-connected realtor is also a priority for buyers.

Buyers looking for single-family Los Gatos real estate should note that the median list price over the past two years has not dropped below $1.5 million, but it has also not climbed above $3.5 million. Prices lingered around the $2 million mark from July 2021 through January 2022—with the exception of November and December 2021—when the median was close to $1.5 million. February's data indicates prices are climbing again, with the median list price rising to approximately $2.75 million. Fluctuations in the median list price are common, given the available inventory for single-family homes.

Buyers that would prefer a condo or townhome for sale in Los Gatos can expect the median price to stay between $1 million to $1.5 million (based on the data from March 2020 through February 2022). The median list price for condos and townhomes only exceeded $1.5 million in July, August, September, and December 2021.

Buyers looking at condos and townhomes should be especially competitive and prolific in their bidding since the number of available homes per month has not exceeded 25 over the past two years and has often dropped below 15. Given the low inventory, buyers should be ready to place an offer on a condo and townhome as soon as possible.

 

Investors interested in offering Los Gatos real estate for rent can make a profit with both standard and temporary rentals. Studio properties have insufficient median rental data for twelve-month comparison, but there has been a drop in median rental price from $1895 in March 2021 to $1800 in October 2021. No data is available for 2022 yet—but based on October’s median rent, investors in studio apartments can expect to earn $21,600 over the next twelve months.

Investors interested in one-bedroom houses for sale in Los Gatos will be pleased to note there was an increase in median rental income from $2189 in January 2021 to $2296 in January 2022. Using January 2022’s median rent, investors can expect to bring in $27,540 in the next twelve months.

As for two-bedroom Los Gatos real estate, median rent also increased over the past year, from $2763 in January 2021 to $2954 in January 2022. If median rent stays at the January 2022 amount, investors can receive $35,448 in rental income over the course of one year.

For those who would prefer three-bedroom houses in Los Gatos, the median rent has decreased from $4575 in January 2021 to $4305 in January 2022. Although the median rent is lower than a year ago, investors can still bring in $51,660 with twelve months of rental income at the January 2022 median rate.

The largest jump in median rental income from January 2021 to 2022 is with four-bedroom Los Gatos real estate. The median rent in January 2022 was $7008, up $1153 from January 2021’s $5855. Based on January 2022’s median rental rate, it is possible to earn $84,096 for twelve months of steady rental income.

At any level, real estate investors can turn a tidy profit with standard or temporary rentals after they purchase Los Gatos real estate. 

The Los Gatos real estate market is expected to continue to favor sellers through 2022. Buyers interested in houses for sale in Los Gatos should make sure to have their wishlist and pre-approved funding in place as early as possible and should aim to browse for the right home over a few months. It benefits buyers to be ready early, so they can bid as soon as they see a property that meets their requirements.

When you’re ready for the best personal insights and market analysis for buying or selling Los Gatos real estate, contact local realtor Stilla Raissi.