The Los Gatos Lodge site sold in October 2025. SummerHill paid $78 million for it, according to the Los Gatan, and plans to replace the lodge with 155 homes under the name Solana. On SummerHill's project page, every one of them is a townhome, with 2 to 4 bedrooms and 1,339 to 2,270 square feet.
Many buyers think of Los Gatos as a town of large detached houses. Its approved for-sale construction is mostly townhomes. Those townhomes will join a resale market for condos and townhomes that already trades at a steep discount to houses and has stopped selling above asking. Buyers comparing South Bay towns should treat Los Gatos as two markets. Right now the attached one gives a buyer more room to negotiate. It is also the one with more supply on the way.
Houses and townhomes moved differently in September 2026
The Santa Clara County Association of Realtors' September 2026 city table splits Los Gatos into two property types.
| Los Gatos, September 2026 | Single-family homes | Condos and townhomes |
|---|---|---|
| Median sale price | $2,550,000 | $895,000 |
| Median price per sq ft | $1,296 | $727 |
| Share of list price received | 103% | 99% |
| Closed sales | 25 | 6 |
| Current inventory | 86 | 24 |
| Average days on market | 38 | 35 |
Price per square foot is the most useful row. In September 2026, a Los Gatos condo or townhome sold for about 56 cents per square foot for every dollar a house brought. As a rough illustration, 1,500 square feet came to about $1.09 million at the attached median rate and about $1.94 million at the detached rate. Some of that gap is land, and some is the kind of home. It is still large enough to put Los Gatos within reach for a buyer who assumed the town started at $2.5 million.
The list-price row matters too. In September 2026, houses closed at 103% of asking on average, so buyers were still bidding above the list price. Condos and townhomes closed at 99%. That is a small gap, but it marks a change. In the detached segment, sellers set the terms. In the attached segment, buyers were negotiating down.
The attached numbers come from six sales, so one unusual unit could move the median. Inventory points the same way, though. At the end of September there were 24 attached listings for 6 sales and 86 detached listings for 25 sales. That works out to about four attached listings per closed sale and about three and a half for houses. On these counts, the attached segment has more homes for sale per buyer and lower prices.
The approved pipeline is mostly townhomes
Los Gatos has several large projects moving through approval, litigation, or a change of developer. Almost all of the new housing is attached.
| Project | Homes | Housing type | Status as of late October 2026 |
|---|---|---|---|
| Solana, former Los Gatos Lodge site | 155 | Townhomes, 1,339–2,270 sq ft | Developer page says "Coming Spring 2027." No prices posted |
| North 40 Phase 2 | 450, incl. 77 affordable | 127 townhomes, plus apartment buildings | Approved January 13, 2026. Developer reported exploring a sale in April 2026 |
| 14789 Oka Road, Urban Catalyst | 138, incl. 28 low-income | Townhomes | Approved August 18, 2026 |
| Surrey Farms Estates, 178 Twin Oaks Drive | 12, incl. 3 affordable | Single-family | Before Town Council at an October 29 special meeting |
Counting only the three approved projects, about 420 new townhomes are planned in Los Gatos. The Los Gatan reported the Oka Road approval in September, and the one detached proposal in the group has 12 homes. Solana's homes and North 40's 127 townhomes are planned as sales. No plan to sell or rent the Oka Road homes has been announced. Other proposals could add to the attached total. The Mercury News reported that a Superior Court judge dismissed the Town's suit over the Arya applications on January 29, 2026, and that the Town said it would keep processing both The Arya and The Luxe. Earlier Los Gatan reporting put those Builder's Remedy proposals at 175 and 120 homes. It also covered a renewed legal challenge from the developer of the 119-unit Capri Fruitstand proposal. The state housing department found the Town's Housing Element in substantial compliance in a July 10, 2024 letter.
None of this is new for the North 40. SummerHill's first phase there, Bellaterra, was described at its 2021 opening as 253 homes, including 97 rowhomes and 80 condos. The next wave follows the same pattern on more sites.
The plans depend on townhome sales
New townhomes help pay for these projects, so their prices matter to the developers. The Los Gatan reported in November 2025 that the North 40 developer asked to hold off on the 100% lower-income building while it raised funding by selling 127 townhouses first. When the Town approved Phase 2, the Los Gatan's coverage said the developer had asked to build the market-rate townhomes first to cover about $100 million in upfront costs. That plan relies on a healthy attached market at the time of sale. In April 2026, the Silicon Valley Business Journal reported that Grosvenor was exploring a sale of the North 40 project. As of late October, no buyer or construction start had been publicly confirmed.
Solana's dates have also changed. When SummerHill closed on the lodge site, the Los Gatan quoted a plan for sales in "Winter 2026." The project page now says "Coming Spring 2027," and its sales office hours are still listed as "Coming Soon." A one-season delay is common in new construction. It also means the first large group of new Los Gatos townhomes will probably reach the market next spring, when resale listings usually increase too.
In practice, a builder with 155 units to sell has different incentives from one homeowner with one unit. If resale townhomes keep closing below list, builders may compete with them on price or on terms. Builders also have to recover land costs, such as the $78 million SummerHill paid for the lodge site, so new-construction prices may not move much at first. Either way, a buyer considering a Los Gatos townhome in 2027 will likely be able to compare a resale unit against several new ones, which has rarely been true in this town.
What this means at the offer table
If you are buying a resale condo or townhome now:
- In September 2026, the attached segment closed below list on average. The comparable sales are the basis for your offer price, not the asking price.
- With about four attached listings per closed sale, you can take the time to compare buildings before you commit.
- Ask how the unit compares with Solana's 1,339 to 2,270 square foot plans. In 2027, your eventual buyers will be making that comparison too.
If you own a Los Gatos condo or townhome and plan to sell within a couple of years:
- If you list before spring 2027, you will mostly compete with other resale units. If you list after Solana opens its sales office, you may also be competing with a builder's model homes.
- Your price per square foot will be compared with the September 2026 attached median of $727, not the $1,296 detached figure.
If you are buying a house:
- The detached market works on different terms. In September 2026, Los Gatos houses closed at 103% of list. The new-supply pipeline does little to add single-family homes, so the townhome wave is unlikely to cool bidding there.
Approvals, lawsuits, and development schedules all affect what gets built and when. The details here come from public reporting, and this post is general information, not legal or financial advice. Confirm anything that bears on your own purchase with the appropriate professional.
FAQ
Is a six-sale month enough to trust the townhome numbers? Not as a precise price. A small sample can move a median sharply. The direction matches the other signals, though. Attached homes closed below list, inventory was high relative to sales, and price per foot was well under the detached figure.
When will Solana start selling? SummerHill's project page says "Coming Spring 2027" and lists no prices. The developer offers an online form for updates.
Is North 40 Phase 2 still going forward? The Town approved it on January 13, 2026. The Silicon Valley Business Journal reported in April 2026 that Grosvenor was exploring a sale, and no completed sale or construction start had been confirmed as of late October.
Are any new detached homes coming? The Surrey Farms Estates proposal for 12 single-family homes on Twin Oaks Drive was set for a Town Council special meeting on October 29, 2026.
If you are deciding between a resale townhome now and a new one in 2027, or timing the sale of a unit you already own, Karin Freiman can compare the per-foot numbers, the listings in your segment, and the builders' timelines with you before you set a price or make an offer. Book a Consultation and we will start with the comparable sales for your segment.
