The months of inventory, or absorption rate, in Saratoga reveals that the market is not too unhealthy in this upscale community. While much of the valley is struggling with long months of inventory, the condo and townhome market and single family home market in Saratoga are both under 6 months. The National Association of Realtors says that less than 6 months of inventory constitutes a sellers market, and more than 6 months a buyers market.

That said, the condo market is inching upwards, and so is the single family home market. Will the impact of the mortgage meltdown be felt in this corner of Silicon Valley?

 

Saratoga, CA real estate months of inventory

 

Next, please view some of the key data on Saratoga CA single family homes (these charts from the Real Estate Report, a subscription I have):

 

Trends At a GlanceSep 2008Previous MonthYear-over Year
Median Price$1,690,000$1,625,000 (+4.0%)$1,658,000 (+1.9%)
Average Price$1,957,170$1,802,480 (+8.6%)$1,831,840 (+6.8%)
No. of Sales2326 (-11.5%)19 (+21.1%)
Active128130 (-1.5%)121 (+5.8%)
Sale vs. List Price97.6%97.1% (+0.5%)100.4% (-2.8%)
Days on Market2730 (-9.5%)32 (-14.7%)

 

And the same information for the condo and townhouse market in Saratoga:

 

Trends At a GlanceSep 2008Previous MonthYear-over Year
Median Price$632,500$656,500 (-3.7%)$605,000 (+4.5%)
Average Price$625,000$686,250 (-8.9%)$776,333 (-19.5%)
No. of Sales46 (-33.3%)3 (+33.3%)
Active1519 (-21.1%)14 (+7.1%)
Sale vs. List Price98.5%97.6% (+0.9%)99.7% (-1.2%)
Days on Market1253 (-77.0%)31 (-60.9%)

 

The market is close to balanced in Saratoga, so it’s a very decent time to either buy or sell there now. If you’d like information on buying or selling a home in Saratoga, please contact me!