I set out this morning to see how my home town of Los Gatos was faring in the property market compared to the rest of the Bay Area. I started, as I often do, by running some basic calculations on median list price and median price per square foot to see where we are compared to the peak of late 2006 thru 2007.
As the graphs indicate, Los Gatos overall is currently standing at about 16% below it’s peak. Prices here have rebounded a little but when you look at the data, they actually didn’t fall that much either (Note: theses are averages and medians, your mileage may vary!). For homeowners no decline in value is ideal of course, but it’s certainly not the bloodbath other areas have experienced.
As if reading my mind, the Mercury News ran an article this morning reflecting similar stories across the Bay Area. Affluent areas fell 10-20%, less affluent areas 50-60%. Affluent areas are rebounding faster (some even back to peak levels), less affluent areas are still engaged in REO and short sale trench warfare.
Los Gatos market activity patterns often trail a few weeks behind some of the cities further up the peninsula. According to my colleagues there, Palo Alto, Mountain View etc are experiencing multiple offers and rising prices. It will be interesting to see what happens here in the next few weeks.