Spurred by a recent blog from Altos Research suggesting that top end homes are on the market longer but take fewer price reductions I decided to see if this holds true in the Los Gatos market.
Percentage Price Decreased - Los Gatos
Median Days on Market - Los Gatos
As you can see, home prices tell you a lot about the market and in this particular case it would seem Los Gatos is following the same pattern with top tier (top 25%) homes staying on the market longer and taking fewer price reductions than the lower 3 tiers. Price points for the 4 tiers are shown below.
Median Price per quartile - Los Gatos
Interestingly in looking at the same data for the whole of San Jose the opposite would appear to be true with top tiers selling faster and dropping in price more than the lower tiers. However in looking at individual zipcodes within San Jose it would seem that this is more a symptom of the wide variety of market areas in San Jose than a true reflection of the behavior of price tiers within specific markets.