Having said all that, we now send our daughter to a private school even though we live in Los Gatos school districts. It's all relative since even public schools in Los Gatos can't offer what the private schools are offering these days.
Good luck w your search.
Looking at the stats, zip code 95008 is up about 6% when comparing average sales price for condo/townhome in June 2007 to June 2008. Not bad at all considering the market. Los Gatos area is up about 5% over 2007.
From a school standpoint, Rolling Hills and Marshall Lane are high ranking schools. Westmont High is not as high scoring as Saratoga High or Leigh High. http://schoolperformancemaps.com/ca/
It would be hard to offer a simple resale value without looking at the specific complex you are interested in and studying the historical trends for that complex. That would give you the best indicator of how the value in that particular complex has held up in different markets.
Overall I would believe it to be a good investment area for a first home.
Did you buy or are you holding off?
CJ is right that in the Campbell Union High School District, Leigh ranks higher than Westmont (though both are good schools), but Los Gatos high is higher still.
No one can give you a resale idea sight unseen and without knowing which complex or the exact location of the home you have in mind. Avoid buying close to high voltage power lines, railroad tracks, freeways - anything that's an issue you can't fix.
Generally, a townhome in Los Gatos in any of the school districts can be a great long-term investment. Plan to buy and hold, not buy and flip.
I have a LOT of Los Gatos homebuyer information on the page that is linked below. Please check it out if you're still in the market to buy a home.
With regard to the schools and the Campbell area, CJ hit the mark. 95008 (Campbell area) is up approx. 6% in comparison. Rolling Hills and Marshall Lane are excellent schools (I have personal experience). Westmont does fall a little from Saratoga and Leigh but continues to be in the top percentile.
As for resale, an extensive comparison of the properties where you plan to purchase could give you some indication. I agree with CJ that this area would definitely be a good investment for a first home.
I have a listing with Excellent Campbell Elementary and middle school located at 224 Wedgewood Ave, Los Gatos. Use me as your agent and I can Give you $11,000 commission Rebate.