Los Gatos Housing Market Update: October 2025 vs. October 2026

Los Gatos home prices are shifting, properties are selling faster, and buyers may be finding more opportunities to negotiate. So, what's really happening in the Los Gatos real estate market?

If you've been keeping an eye on the Los Gatos housing market, you've probably noticed that real estate trends don't always move in the same direction.

One month, home prices are climbing and buyers are competing for available listings. The next, average sales prices decline, even as properties spend less time on the market.

That's exactly what makes the October 2025 vs. October 2026 Los Gatos real estate comparison so interesting.

The latest numbers show that average sales prices decreased, fewer properties sold, and homes spent an average of 12 fewer days on the market. Meanwhile, median listing prices increased nearly 14%.

What does that mean if you're considering buying or selling a home in Los Gatos?

Let's break down the numbers and explore what they tell us about today's market.

Los Gatos Housing Market: October 2025 vs. October 2026

Here's a snapshot of residential real estate activity across Los Gatos, including single-family homes, townhomes, and condominiums.

Market Indicator	October 2025	October 2026	Year-Over-Year Change
Average Sales Price	$2.82M	$2.41M	-14.5%
Median List Price	$1.80M	$2.05M	+13.9%
Properties Sold	47	41	-12.8%
Average Days on Market	58	46	-20.7%
Sales-to-List Price Ratio	98.8%	98.2%	-0.6 percentage points

At first glance, these numbers may seem contradictory. How can average home prices decrease while asking prices increase? And why are homes selling faster if fewer properties are changing hands?

The answer is that each statistic measures something different.

For additional perspective on how the local market has evolved, explore my Los Gatos real estate market analysis covering the past year.

1. Average Los Gatos Home Sales Prices Decline Nearly 15%

One of the biggest changes in October 2026 was the decrease in average sales prices.

In October 2025, the average residential property sold for approximately $2.82 million.

By October 2026, that figure had declined to $2.41 million.

That's a difference of approximately $410,000, or 14.5%, based on the rounded figures.

But before assuming Los Gatos property values have dropped nearly 15%, there's an important distinction to understand.

Does a Lower Average Sales Price Mean Home Values Are Falling?

Not necessarily.

Average sales prices are calculated using the properties that actually closed during a particular month.

Los Gatos has a diverse housing inventory, ranging from condominiums and townhomes to single-family properties and luxury hillside estates.

If one month includes a greater number of high-end transactions, the overall average can increase significantly.

Likewise, a month with more moderately priced properties can produce a lower average.

This means a decrease in average sales price doesn't automatically indicate that every Los Gatos property has lost value.

For buyers, the most useful information often comes from reviewing recent comparable sales for the specific type of home and neighborhood you're considering.

You can also explore my Los Gatos June vs. July 2026 housing market update to see how monthly sales prices and market activity have fluctuated throughout the year.

2. Median Listing Prices Increase Nearly 14%

Here's where the October comparison becomes especially interesting.

While average sales prices decreased, median listing prices actually increased.

• October 2025: $1.80 million
• October 2026: $2.05 million
• Year-over-year increase: 13.9%

That's a $250,000 increase in the median asking price.

So, why would sellers be listing homes at higher prices when the average closing price is lower?

The answer comes down to understanding the difference between listing prices and completed sales.

The median list price represents the midpoint of reported asking prices, while the average sales price represents the mean of completed transactions.

Because these figures measure different things, they don't necessarily move together.

What Does This Mean for Los Gatos Buyers?

If you're considering purchasing a home in Los Gatos, don't assume the asking price tells the entire story.

A property listed at $2 million may be priced competitively based on recent sales, while another property at the same price point may offer more room for negotiation.

Factors such as property condition, square footage, location, recent improvements, and current competition all matter.

The key is understanding what a home is worth based on comparable properties—not simply what the seller is asking.

If you're comparing communities throughout Silicon Valley, you may also find my 2026 Housing Market Outlook for Buyers and Sellers helpful.

3. Los Gatos Homes Are Selling 12 Days Faster

Another notable change involves how long properties are spending on the market.

In October 2025, Los Gatos homes averaged 58 days on the market.

By October 2026, that number had decreased to 46 days.

That's a reduction of 12 days, or approximately 20.7%.

Even though fewer homes sold overall, the properties that closed in October 2026 spent less time on the market on average.

Why Does Days on Market Matter?

Days on market can help buyers and sellers understand how quickly properties are moving through the listing process.

For buyers, a newly listed home may require a different strategy than one that has been available for several weeks.

A property with a longer listing history may offer opportunities to discuss price, repairs, closing timelines, or other terms.

However, a shorter average marketing period doesn't necessarily mean every property is attracting multiple offers.

It's important to evaluate each listing individually.

For a look at how marketing times changed earlier in the season, read my Los Gatos July vs. August 2026 real estate comparison.

4. Fewer Los Gatos Homes Sold in October 2026

Closed sales also declined year over year.

• October 2025: 47 properties sold
• October 2026: 41 properties sold
• Year-over-year decrease: 12.8%

Six fewer properties closed in October 2026 compared with the previous October.

While this represents a decrease in transaction volume, it doesn't necessarily mean buyer interest disappeared.

The number of completed sales can be influenced by available inventory, pending transactions, financing conditions, and the types of homes offered for sale.

That's why it's helpful to review multiple months of activity rather than relying on one isolated comparison.

For additional context, my September 2026 Los Gatos housing market update explores how local conditions changed heading into the fall season.

5. Los Gatos Buyers Continue Negotiating Below Asking Price

The sales-to-list-price ratio provides another useful perspective.

In October 2025, the reported ratio was 98.8%.

In October 2026, it was 98.2%.

That's a decrease of just 0.6 percentage points.

Both figures were below 100%, indicating that final sales prices were below asking prices in aggregate.

However, that doesn't mean every home sold below asking.

Some properties may attract multiple offers and close above their listing price, while others may require price adjustments before finding a buyer.

Can Buyers Still Negotiate in Los Gatos?

Potentially, yes.

A property's pricing history, condition, marketing time, and competing interest can all influence negotiations.

Buyers should also consider the full financial picture, including mortgage payments, property taxes, insurance, and potential maintenance expenses.

The Consumer Financial Protection Bureau's homebuying resources offer useful information about financing, mortgage costs, and preparing for a purchase.

Understanding these expenses before making an offer can help you evaluate whether a property fits your budget.

Is Now a Good Time to Buy a Home in Los Gatos?

If you're thinking about purchasing a home in Los Gatos, the October 2026 market presents an interesting combination of conditions.

Average sales prices were lower than the previous October, and the sales-to-list-price ratio remained below 100%.

At the same time, homes spent fewer days on the market.

So, does this mean it's a good time to buy?

That depends on your financial situation, housing needs, and long-term plans.

Rather than trying to predict the perfect moment to purchase, focus on finding a home that meets your needs at a price you're comfortable paying.

Before making an offer, I recommend reviewing:

• Recent comparable sales for similar properties
• The home's condition and available disclosures
• Asking price and listing history
• Current competition and inventory
• Financing costs and estimated monthly payments
• Potential maintenance and improvement expenses

The Consumer Financial Protection Bureau's Loan Estimate guide is a helpful resource for comparing mortgage terms and understanding estimated closing costs.

A well-informed buyer is better positioned to evaluate opportunities without relying on broad market assumptions.

What Should Los Gatos Home Sellers Know?

For homeowners considering selling, the October 2026 figures highlight why strategic pricing matters.

Median listing prices increased, but average sales prices declined.

Meanwhile, homes spent less time on the market.

This combination reinforces the importance of evaluating recent comparable sales rather than choosing an asking price based solely on broad market averages.

Professional photography, thoughtful property preparation, effective marketing, and realistic pricing expectations can help position a property to attract interested buyers.

If you're considering selling, reviewing the competition in your specific price range is one of the most useful places to start.

The Bottom Line: Los Gatos Real Estate Is Showing a Different Market Dynamic

The October 2025 versus October 2026 comparison reveals several notable changes in the Los Gatos housing market.

Average sales prices decreased approximately 14.5%, median listing prices increased 13.9%, and closed transactions declined 12.8%.

At the same time, homes spent 12 fewer days on the market, and the sales-to-list-price ratio remained relatively stable at 98.2%.

For buyers, these trends reinforce the importance of understanding individual property values and potential negotiating opportunities.

For sellers, they highlight why competitive pricing and thoughtful marketing remain essential.

The biggest takeaway? Los Gatos real estate isn't a one-size-fits-all market. Understanding your specific neighborhood, property type, and price range matters far more than relying on a single headline number.

Frequently Asked Questions About the Los Gatos Housing Market

What was the average home sales price in Los Gatos in October 2026?

The reported average residential sales price in Los Gatos was approximately $2.41 million in October 2026, compared with $2.82 million in October 2025.

Did Los Gatos home values decrease in 2026?

The average sales price was approximately 14.5% lower in October 2026 than in October 2025. However, this does not establish that individual properties declined in value by the same percentage.

Are Los Gatos homes selling below asking price?

The reported October 2026 sales-to-list-price ratio was 98.2%, compared with 98.8% in October 2025. Both figures were below 100%, although individual transactions varied.

How long does it take to sell a home in Los Gatos?

Properties averaged 46 days on the market in October 2026, compared with 58 days in October 2025, a decrease of approximately 20.7%.

How many homes sold in Los Gatos in October 2026?

Forty-one residential properties sold in October 2026, compared with 47 in October 2025, representing a decrease of approximately 12.8%.

Is Los Gatos a good place to buy a home in 2026?

Whether buying in Los Gatos makes sense depends on your budget, property preferences, financing options, and long-term goals. Reviewing recent comparable sales and current listings can help you make a more informed decision.

Thinking About Buying or Selling in Los Gatos?

Whether you're exploring homes near Downtown Los Gatos, considering a townhome or condominium, or thinking about selling your current property, I'd love to help you understand your options.

With more than 20 years of experience in Silicon Valley real estate, I help buyers and sellers navigate local market conditions, evaluate opportunities, and make informed decisions.

Let's review the latest Los Gatos market activity, discuss your goals, and create a real estate strategy that works for you.

Michelle Elliott | Coldwell Banker | DRE #01777533

Phone: 408-839-7915 | Email: michelle@michelleelliottrealtor.com