Published October 11, 2026 in Market Update

Inventory rose, but Saratoga stayed tight

By Brad Bell

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

These numbers cover the three months ending August 31, 2026. Facts are as of October 11, 2026.

Nationally, Realtor.com reported that 20.8% of listings took price cuts in September, the highest share since October 2022. Mortgage rates climbed above 7% for the first time since January 2025, according to Realtor.com. By early October, CNBC reported the average 30-year fixed rate had reached 7.49%. That backdrop is the one Saratoga and Los Gatos sellers were working against.

In Saratoga, the story was different. The Real Estate Data Aggregator counted 1.7 months of supply in ZIP 95070. That is a seller's market by any measure. Supply actually tightened by 0.2 months from the same period a year before.

The Real Estate Data Aggregator put the Saratoga median at $4,175,000, up 1.3% from the same three months in 2025. That is a modest gain, not a surge. But it moved in the right direction while national prices fell 1.4%, according to Realtor.com.

Eighty-one homes sold in 95070, up 37.3% from the same period in 2025. New listings rose 46.4% to 82. More supply came in, and buyers absorbed nearly all of it. Homes went under contract in a median of 15 days. That is four days faster than a year ago.

The average sale came in at 101.6% of list price, up 0.9 points year over year. Nearly half of homes, 49.4%, sold above list. That share slipped 1.5 points from last year, a small softening worth watching but not a signal of a shift.

Los Gatos: two ZIP codes, two different reads

Los Gatos splits into distinct areas, and the numbers reflect that. ZIP 95030 covers downtown Los Gatos and Almond Grove. ZIP 95032 covers Blossom Hill and Blossom Manor. They behaved differently in this period.

The Real Estate Data Aggregator counted 42 homes sold in 95030, up 5% from a year before. The median price jumped 23.4% to $3,725,000. That is a large move. It reflects the mix of homes that closed, not necessarily a straight-line price increase on any one property.

Days on market in 95030 stretched to 34, seven days longer than the same period last year. The sale-to-list ratio slipped to 98.9%, down 1.5 points. Pending sales fell 24.4%. Downtown Los Gatos had buyers, but they took more time and negotiated a little harder.

In 95032, the Real Estate Data Aggregator counted 66 homes sold, down 7% from a year before. The median came in at $2,700,000, up 10.1%. Homes sold at 101.2% of list, up 1.3 points. The share selling above list rose 7.1 points to 40.9%. Fewer homes sold, but the ones that did sold well.

The three ZIPs together

Across all three ZIPs, the Real Estate Data Aggregator counted 189 homes sold, up 11.2% from a year before. Listings on the market rose 7.1% to 120. New listings climbed 4.5% to 187. Pending sales, the forward-looking number, fell 10.1% to 160. More activity came in. Some of the pipeline slowed. That is worth noting going into fall.

The rate environment is part of that. CNBC reported that mortgage applications to purchase a home fell 15% compared with the same week a year ago. Rates above 7% slow some buyers. In this price range, many buyers pay cash or carry large down payments, so the effect is smaller than it would be elsewhere. But it is not zero.

What this means if you own here

More listings did not soften Saratoga. The Real Estate Data Aggregator still shows 1.7 months of supply and a 15-day median. That is tight. Homes that are priced well are still getting offers above list.

Los Gatos is a little more varied. Downtown moved slower and buyers negotiated closer to list. Blossom Hill had fewer sales but stronger pricing on the ones that closed. One ZIP can read very differently from the other, and one street can read differently from the ZIP.

Nationally, the Federal Housing Finance Agency reported U.S. home prices up just 2.6% year over year through July. Saratoga's 1.3% gain is modest by local standards, but it held positive while national prices fell 1.4% in October, according to Realtor.com. Context matters here.