You make smarter moves in Los Gatos when you track the right numbers. With prices near the multi‑million mark and low monthly sales, small shifts in supply, rates, or buyer tempo can change your plan fast. If you understand a few core indicators, you can time your listing, write stronger offers, and budget with confidence. This guide breaks down the metrics that matter in Los Gatos right now and how to use them. Let’s dive in.

The Los Gatos indicators to watch

Inventory and months of supply

• What it is: Active listings compared with the recent sales pace. Months of supply is a quick balance check. Definitions vary, but under about 3 to 4 months often favors sellers, and 4 to 6 months is closer to balanced. See standard definitions on months of supply.
• Local read: Late summer 2025 snapshots show about 131 active listings and roughly 27 August sales, which implies about 4.8 months of supply. That points to a near‑balanced market overall. Expect hotter and cooler pockets by price band and property type.

Prices and short‑term trend

• What it is: Median sale price shows where the middle of the market is transacting each month. A modeled “typical value” index helps with trend context.
• Local read: The typical Los Gatos home value is around $2.39 million as of August 2025. Recent MLS‑based medians hover near $2.3 million with a year‑over‑year dip. In a small, high‑end market, medians can swing when the mix of sold homes changes.

Speed to sell and sale‑to‑list

• What it is: Days on market and days to pending show tempo. Sale‑to‑list ratio indicates how close sales land to asking price.
• Local read: Recent reports show a median 22 to 24 days to go under contract. Well‑priced, move‑in‑ready homes can still draw quick interest and strong offers. Overpriced or unusual homes take longer and often see reductions.

Price per square foot

• What it is: A way to compare differently sized homes and gauge renovation value.
• Local read: Many Los Gatos sales clear above $1,000 per square foot, with ranges roughly between $1,100 and $1,330 depending on the area and condition. Always compare similar property types and locations.

New listings and price reductions

• What it is: New‑listing flow and the share of price cuts reveal whether demand is keeping up with supply.
• Local read: New listings rose seasonally in spring, then flattened. Price reductions increased in late summer for some segments, which gave buyers more room in those tiers. Presentation and pricing still separate fast sales from slow ones.

Mortgage rates and payments

• Why it matters: Small rate moves change monthly payments a lot at Los Gatos price points.
• Current context: The 30‑year fixed averaged about 6.30% the week of Oct 9, 2025, according to national mortgage‑rate reporting. Lower rates can re‑energize competition by lifting purchasing power.

Jobs and local demand

• Why it matters: Employment and incomes support housing demand, especially in tech‑centric markets.
• Current context: The San Jose–Sunnyvale–Santa Clara metro posted an unemployment rate in the mid‑4% range in mid‑2025, with 4.7% cited for August 2025 in the BLS overview. Track the BLS San Jose MSA page for monthly updates that can influence higher‑end activity.

Policy and new supply

• Why it matters: Zoning decisions and large projects shape future inventory.
• Town actions: Los Gatos’ 2023–2031 Housing Element is certified and plans for roughly 1,993 units to meet state targets. You can review the program and rezoning steps on the town’s Housing Element page.
• Major project: North 40 Phase II proposes roughly 450 homes, including an affordable component. Approval and build timing will shape how and when supply arrives. Follow project updates from the developer’s North 40 Phase II application news.

Property taxes and carrying cost

• Why it matters: Ongoing costs affect affordability and net proceeds.
• Local context: Santa Clara County property taxes often land near 1% of assessed value plus local levies. Town materials show total assessed rates around 1.157% in sample tables. Review current components and parcel taxes on the town’s property tax resources.

What today’s numbers mean for you

If you are buying

• Budget using realistic rates and taxes. Median household income in town is about $207,891, yet typical home values are more than ten times that amount, so a clear payment plan matters. See income data in Census QuickFacts.
• Look for leverage where months of supply is higher and price reductions are common. Longer days on market can open the door to concessions.
• When rates dip, act quickly. A pre‑approval and a clean offer help you compete when desirable homes hit the market.

If you are selling

• Price to the market you have, not the one you hoped for. In a near‑balanced environment, correct pricing is the fastest path to strong results.
• Invest in presentation. Staging, pre‑inspections, and complete disclosures help you maintain momentum and minimize renegotiations.
• Watch rate moves and nearby new listings. A small shift in buyer demand can change showing traffic and strategy week to week.

How to monitor these monthly

• Market balance and definitions: Review standard terms like months of supply on GetSmartCharts definitions.
• Mortgage rates: Check weekly direction using trusted coverage like this national mortgage‑rate update.
• Jobs and incomes: Follow the BLS San Jose MSA monthly employment snapshot and the town’s Census QuickFacts.
• New supply pipeline: Track rezonings, approvals, and Housing Element updates on the Town’s Housing Element page and major projects like North 40 Phase II.

Ready to talk strategy for your specific price band and neighborhood? Reach out to Danielle Cashen for a local plan that blends pricing, presentation, and in‑house financing so you can move with confidence.

FAQs

What does months of supply mean in Los Gatos today?

• Around 4.8 months based on late‑summer snapshots, which suggests a near‑balanced market where strategy and presentation drive results.

How fast are Los Gatos homes selling right now?

• The median time to go under contract is about 22 to 24 days, with move‑in‑ready, well‑priced homes often moving faster.

Are Los Gatos home prices rising or falling?

• Recent monthly medians show a year‑over‑year dip, while the modeled typical value is roughly flat to slightly down versus last year.

How could North 40 Phase II affect inventory?

• If approved and built, about 450 proposed homes would add meaningful supply over several years, mostly in multifamily formats.

What property taxes should I budget for in Los Gatos?

• Plan for roughly 1% of assessed value plus local levies, with total assessed rates often near 1.157% depending on the parcel.