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Prices, inventory, and demand — distilled every month into one clear verdict: buyer’s market or seller’s. The investor’s read, before you make an offer.
The median asking price in Los Gatos is about $2,045,000 as of Sep 2026, down 16.1% from a year ago. The typical listing is 6% smaller than a year ago, and asking price per square foot is flat. So the size of homes on the market explains much of the drop. That is the asking price on listed homes, so sold-price and home-value sites show different numbers (why).
Only on the right house. Neither side has the upper hand in Los Gatos right now. The signals split. Compared with 2017–2019 at this time of year, the typical listing has been up 11% fewer days, but there are 28 pending sales per 100 listings, against 47 then. The market will not hand you a discount. You have to find it in one specific listing.
Los Gatos asking prices per square foot were above the year before in 66% of months since the data starts. Within a year, the cheapest and priciest months differ by about 11.1%. That is bigger than the yearly trend, so timing your purchase matters here. Nothing in Los Gatos's numbers is far from its own normal. Your return comes from the property and the price you negotiate.
The median asking price is 40.0% below its Mar 2024 peak. Per square foot the gap is smaller: 8.2% below the May 2022 high. Part of the drop is smaller homes coming to market. Prices stopped falling about a year ago. They are flat now. Waiting will not get you a cheaper house. It might still get you a more motivated seller. Los Gatos prices rose in only 73 of the last 111 months. This market goes up and down. Timing matters here. Growth will not rescue a bad price.
This market is turning. Which way is not settled yet. Check the monthly numbers above before you commit.
In Los Gatos, 29 out of every 100 households rent. Most own their home. The renter share is growing. Five years ago it was 27 in 100. Los Gatos added about 500 renter households in five years. Renter households average 2.3 people. Two and three bedrooms fit the typical renter.
Households grew 5% in five years. The housing stock grew 5%. The two are moving in step. 7.8% of homes sit empty. That is normal for a healthy market.
The median Los Gatos household earns $213,138 a year. Incomes here have grown 4.1% a year since 2019. Incomes are rising faster than home prices. Affordability is improving. A typical home costs 9.6 times the median income. Most locals cannot buy. That keeps rental demand deep. It also caps the rent they can pay. At 30% of income, a tenant on the median income can pay about $5,328 a month.
To see what one Los Gatos address would rent for and cash flow, run it through the app.
HUD sets one fair market rent for Santa Clara County. For fiscal year 2026:
The figures include tenant-paid utilities and apply to all of Santa Clara County, so one home's rent can sit well above or below them. See fair market rent by city.
Ranked among the 141 California markets we track:
Read how rent-to-price works and how we read these numbers, then run the numbers on a deal.
The median asking price in Los Gatos is about $2,045,000 as of Sep 2026, down 16.1% from a year ago. The typical listing is 6% smaller than a year ago, and asking price per square foot is flat. So the size of homes on the market explains much of the drop. This is the asking price on homes listed for sale. Sites that report sold prices or estimated home values will show a different number. Our Los Gatos figures cover the 4 ZIP codes with a Los Gatos mailing address, which can reach past city limits.
Neither side has the upper hand in Los Gatos right now. We compare Los Gatos with 2017–2019 at this time of year: there are 28 pending sales per 100 listings, against 47 then; 20% of sellers have cut their price, against 18% then; the typical listing has been up 11% fewer days.
The median asking price is 40.0% below its Mar 2024 peak. Per square foot the gap is smaller: 8.2% below the May 2022 high. Part of the drop is smaller homes coming to market. Prices stopped falling about a year ago. They are flat now. Waiting will not get you a cheaper house. It might still get you a more motivated seller.
Across 9 full years, Los Gatos asking prices ran lowest in August, about 4.9% below the year's average. They peaked in May. The most homes for sale show up in August, about 23% above the yearly average.
Assume +0.3% a year. Los Gatos grew 3.4% a year over the decade. Ignore that rate. Most of it landed in the 2020 and 2021 boom. Without the boom, Los Gatos prices are flat. Assume no growth. Prices were flat over the last year.
HUD's fiscal year 2026 fair market rent for Santa Clara County is $3,483 a month for 2 bedrooms and $4,602 for 3 bedrooms. The figures include tenant-paid utilities and cover the whole county.
Los Gatos has four ZIP codes. Each links to its live market dashboard.
Closest matches on asking price, price per square foot, time on market, buyer demand, and price cuts.
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