Published October 25, 2026 in Market Update

Los Gatos Mountains inventory rose, but prices still moved up

By Brad Bell

Real estate, Los Gatos Mountains - $700K+

The one fact that changes what a seller should do right now: inventory is up 26% and homes are sitting 14 days longer than last year. That means pricing clean matters more than it did in 2025.

The Real Estate Data Aggregator counted 33 homes sold in ZIP 95033 in the three months ending August 31, 2026. That is down 5.7% from the same period in 2025. Fewer closings, but the median sale price still rose 11.1% to $1,500,000. Price growth and sales volume are moving in opposite directions right now.

Nationally, Realtor.com reported active listings topped 1.16 million homes in September 2026. The Los Gatos Mountains are moving the same direction. The Real Estate Data Aggregator counted 63 homes for sale here, up 26%, with 49 new listings, up 25.6%. Buyers have more to look at than they did a year ago.

More supply, but buyers are still showing up

The Real Estate Data Aggregator counted 39 pending sales in the three months ending August 31, 2026. That is up 18.2% from 2025. Demand did not disappear. It just slowed down enough to let inventory build.

The share of homes that went under contract within two weeks of listing was 23.1%, up 11 points from a year before. That is a real shift. When a home is priced right, buyers in the mountains are still moving quickly.

What sellers need to know

The average sale came in at 97.1% of list price, according to the Real Estate Data Aggregator. That is down 1.7 points from 2025. Sellers are getting close to their asking price, but not as close as last year. Overpricing by even a little now costs more than it used to.

Only 12.1% of homes sold above list price in the three months ending August 31, 2026. That is up 0.7 points from 2025, a small move. Bidding wars are not gone, but they are not the default either.

Rates are making things harder nationally

CNBC reported the average contract rate on a 30-year fixed mortgage was 7.41% as of October 21, 2026. Realtor.com noted rates climbed above 7% for the first time since January 2025. CNBC also reported mortgage applications to purchase a home fell 7% for the week.

Rates at that level reduce what buyers can borrow. In a market where the median sale price is $1,500,000, that matters. The Federal Housing Finance Agency reported U.S. house prices rose 2.6% from July 2025 to July 2026. The Los Gatos Mountains, at 11.1%, ran well ahead of that national pace.

At 5.9 months of supply, the Real Estate Data Aggregator puts this market close to balanced. It is not a buyer's market. It is not the seller's market of two years ago either. Homes that sit too long are the ones priced ahead of where buyers are willing to go.

One road in the mountains can read very differently from the ZIP code as a whole. Lot size, access, fire zone and school assignment all shift the picture. If you want to know where your specific property sits against what actually sold, text me.