Published October 25, 2026 in Market Update

Saratoga added listings, but buyers still kept it tight

By Brad Bell

Real estate, Saratoga & Los Gatos - $2M+

Rates moved above 7% for the first time since January 2025, according to Realtor.com. That is the number most sellers worry about. Here is what actually happened in this market.

The Real Estate Data Aggregator counted 189 homes sold across Saratoga and Los Gatos in the three months ending August 31, 2026. That is up 11.2% from the same months of 2025. More listings came in, more homes closed, and supply barely moved.

Saratoga: more listings, same tight grip

New listings in ZIP 95070 rose 46.4% year over year, the Real Estate Data Aggregator found. Buyers absorbed nearly all of it. Months of supply came in at 1.7, down from a year before. The median sale price landed at $4,175,000, up 1.3% from the same period in 2025.

The Real Estate Data Aggregator found that 49.4% of Saratoga homes sold above list price. That share slipped 1.5 points from a year ago. Not every home drew a bidding war, but the average still closed over asking.

Nearly 43% of Saratoga homes went under contract within two weeks of listing, the Real Estate Data Aggregator counted. That share was down 4.2 points from 2025. Buyers had a little more time to think, but not much.

Los Gatos: two ZIP codes, two different reads

Los Gatos has distinct parts. The numbers in 95030, which covers downtown Los Gatos and Almond Grove, read differently from 95032, which covers Blossom Hill and Blossom Manor. Do not treat them as one market.

In 95030, the median sale price rose 23.4% year over year, the Real Estate Data Aggregator found. That is a large move. It reflects what actually sold, not a broad price trend. Only 42 homes closed in that period, so a few high-end sales can shift the median.

Days on market in 95030 stretched to 34, up 7 days from a year ago. The average sale-to-list ratio slipped to 98.9%, down 1.5 points. Sellers in that part of Los Gatos are still getting close to asking, but buyers have a little more room than before.

In 95032, the picture is tighter. The average sale-to-list ratio came in at 101.2%, up 1.3 points year over year. Nearly 41% of homes sold above list price, up 7.1 points. New listings fell 18.3% from a year ago, which kept supply firm.

What the rate move means here

Realtor.com reported that mortgage rates climbed above 7% for the first time since January 2025. Nationally, Realtor.com also found that 20.8% of listings took a price cut in September, the highest share since October 2022.

That national picture did not show up the same way here. The Real Estate Data Aggregator counted 1.7 months of supply in Saratoga and 2 months in Los Gatos 95030. Both are well below the 4 to 6 months that typically signals a balanced market.

The Federal Housing Finance Agency reported U.S. house prices rose 2.6% from July 2025 to July 2026. Saratoga's 1.3% median price gain was more modest. Los Gatos 95032 at 10.1% ran well ahead of the national pace.

Pending sales dipped across the region

The Real Estate Data Aggregator counted 160 pending sales across all three ZIP codes combined, down 10.1% from the same period in 2025. Pending sales are homes under contract but not yet closed. A dip here can mean slower closings ahead, or it can mean the pipeline was simply fuller a year ago. One quarter does not set a trend.

One street can read differently from the ZIP

A ZIP code median covers a wide range of lots, conditions and locations. A home on a larger lot near good schools, or with easy access to 85 or 280, can price and move differently from the ZIP average. The hills on the Santa Cruz Mountains side of Los Gatos draw a different buyer than the flats near downtown.