Here is some data to help you see the market trend for Los Gatos:
1. Number of Single Family Homes sold in LG in the last 6 months: 97
2. Average Days on the Market: 60 Days
3. Average Selling price $1,665,000 Vs. Average Listing Price $1.695,000. Thats $30,000 difference between asking and selling, Less than 2% difference.
Now you can decide if houses are over priced.
Hope this helps.