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If you’re thinking about buying a home in Los Gatos, California, you’ve probably noticed that the market can look very different from one month to the next.
Between July 2025 and July 2026, Los Gatos experienced noticeable shifts in home prices, sales activity, days on market and how closely homes sold to their asking prices. Looking at those changes can give today’s buyers some useful context before starting—or continuing—a home search.
The numbers below include single-family homes, townhomes and condominiums and look at Average Sales Price, Median List Price, Sales-to-List Price Ratio, Properties Sold and Average Days on Market.
What Happened to Los Gatos Home Prices?
Home prices moved considerably throughout the year, which is an important reminder that a single month’s average doesn’t tell the whole story.
The average sales price was $2.32 million in July 2025. It reached a low of $2.10 million in December 2025, climbed to $3.25 million in February 2026, and finished at $2.61 million in July 2026.
That puts July 2026’s average sales price approximately 12.5% higher than July 2025.
For buyers, however, that doesn’t mean every Los Gatos home increased in value by 12.5%.
Los Gatos includes properties at a wide range of price points, and the mix of homes sold during any particular month can move the average significantly. February’s $3.25 million average, for example, may reflect a greater concentration of higher-priced transactions rather than a sudden increase in the value of every home.
Buyer takeaway: Pay more attention to recent comparable sales for the type of home and location you’re considering than to one citywide average.
Are Los Gatos Homes Selling Above Asking Price?
This is one of the numbers I watch closely with buyers because it can provide context for offer strategy.
In July 2025, homes sold for an average of 98.5% of their list price. From November 2025 through May 2026, the average sales-to-list ratio remained above 100%, reaching 103.2% in March 2026.
By July 2026, the ratio was 100.4%.
In other words, Los Gatos homes were selling, on average, very close to—and sometimes above—their asking prices.
But buyers shouldn’t automatically assume that every property requires an above-list offer.
The right strategy depends on the individual home: its condition, location, asking price, comparable sales, time on market and the amount of competing interest.
Buyer takeaway: Don’t base your offer solely on the list price. Look at the home’s actual market position first.
How Quickly Are Homes Selling in Los Gatos?
Timing is another area where the market changed considerably.
In October 2025, homes averaged 58 days on market. By April 2026, that number had fallen to just 22 days, followed by 24 days in May.
In July 2026, Los Gatos homes averaged 33 days on market, compared with 47 days in July 2025.
That’s roughly a 30% decrease year-over-year.
For buyers, this is where preparation matters.
If the right property comes on the market, having your financing organized and understanding your offer strategy ahead of time can make the process much easier than trying to figure everything out after you’ve already found a home you love.
At the same time, 33 days is an average. Some properties may receive interest immediately, while others may remain available longer and potentially create different negotiating opportunities.
Are Fewer Homes Selling?
Yes—and this is an interesting part of the July numbers.
There were 53 properties sold in July 2025 compared with 39 in July 2026, a decrease of approximately 26.4% year-over-year.
Sales activity also changed significantly throughout the year. January 2026 recorded just 22 sales, while May reached 55 sales and June recorded 53.
For buyers, fewer closed transactions don’t necessarily mean there are fewer opportunities. It does mean it’s helpful to look beyond one headline number and understand what’s happening within the particular price range and property type you’re targeting.
July 2025 vs. July 2026: What Changed?
Here’s a quick look at the year-over-year numbers:
| Metric | July 2025 | July 2026 | Change |
|---|---|---|---|
| Average Sales Price | $2.32M | $2.61M | +12.5% |
| Median List Price | $1.95M | $1.90M | -2.6% |
| Sales-to-List Ratio | 98.5% | 100.4% | +1.9% |
| Properties Sold | 53 | 39 | -26.4% |
| Average Days on Market | 47 | 33 | -29.8% |
The year-over-year comparison shows a market with a higher average sales price, fewer closed transactions and faster average selling times. Homes also moved from selling slightly below asking on average in July 2025 to slightly above asking in July 2026.
What Does This Mean If You’re Buying a Home in Los Gatos?
The biggest takeaway is simple: there isn’t one strategy that works for every Los Gatos listing.
A newly listed property generating immediate interest may call for a very different approach than a home that has been sitting on the market for several weeks.
That’s why I encourage buyers to look beyond the asking price.
Before making an offer, we can evaluate recent comparable sales, days on market, property condition, price history and current competition to get a clearer picture of what the home may be worth—and how aggressive or flexible an offer should be.
And remember: being competitive doesn’t always mean simply offering the highest price. Financing strength, contingencies, timing and the overall structure of an offer can all matter.
Thinking About Buying in Los Gatos?
Los Gatos continues to be a dynamic real estate market, but the numbers show that conditions can change considerably throughout the year.
If you’re considering buying a single-family home, townhome or condo in Los Gatos, understanding the numbers is only the beginning. The more important question is how those numbers apply to the specific property you’re considering.
Thinking about making a move? Let’s talk about what you’re looking for, review current Los Gatos inventory and build a buying strategy around today’s market.
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About Michelle Elliott
With more than 20 years of experience navigating Silicon Valley real estate—and more than two decades calling Willow Glen home—I bring both professional market knowledge and firsthand neighborhood experience to my clients.
I specialize in San Jose neighborhoods including Willow Glen, Cambrian, Almaden, Japantown, Campbell, Los Gatos, and Downtown San Jose. As a Luxury Property Specialist with Coldwell Banker Realty, I combine hyper-local market knowledge, strategic marketing and strong negotiation to help buyers and sellers make informed real estate decisions.
My real estate insights have been featured on KTVU Fox 2, Real Producers and Willow Glen Resident, and I co-host the San Jose real estate podcast Say What You Want About Real Estate.
Michelle Elliott | Coldwell Banker Realty
408-839-7915
Michelle@michelleelliottrealtor.com
MichelleElliottRealtor.com
DRE 01777533
