The Los Gatos House Listed at $599,000 While Its Only Rival Asks $895,000
The only other small single-family home currently listed in Los Gatos — a 2-bedroom, 670-square-foot place on Raineri Lane — is asking $895,000. The 1-bedroom, 568-square-foot house at 21601 Norman Drive is listed at $599,000. That gap is where the story starts.
| Address | 21601 Norman Drive, Los Gatos |
|---|---|
| List price | $599,000 |
| Beds / Baths | 1 / 2 |
| Size | 568 sq ft |
| Lot | 7,910 sq ft |
| Year built | 1946 |
| Price per sq ft | $1,055 |
| MLS | ML82063180 |
| Listed | October 1, 2026 |
How it compares with homes like it
The peer rule here: same type (single-family homes), within one bedroom, size within 25%, last 24 months, whole Los Gatos market. Nine sales qualify.
The median price across those nine sales was $930,000. The median price per square foot was $1,938. At $1,055 per square foot, Norman Drive is priced 46% below that median on a per-foot basis, and it is the lowest-priced active listing among homes of its type and size in the market right now — ranked first out of two.
Size explains part of the discount. At 568 square feet, this is a genuinely small house, even by the standards of this peer group, where the smallest sale was 480 square feet. A house this size has limited utility for most buyers — one bedroom, no room to grow, and a floor plan that functions more like a large studio with walls. Built in 1946, it is also among the older stock in this comparison set.
The nearest comparable in price was 17777 Ogallala Warpath Road, a 1-bedroom, 513-square-foot home that sold for $500,000 in June 2025 — the only peer sale that came in below the Norman Drive ask. The widest spread in the peer set illustrates how much location within Los Gatos moves the number: 481 Woodland Ave, also 1 bedroom and 624 square feet, recorded at $2,250,000 in December 2024.
Comparable sales
| Address | Recorded | Price | Sq ft | $/sq ft | Distance |
|---|---|---|---|---|---|
| 21525 Aldercroft Hts | March 2025 | $1,275,000 | 569 | $2,241 | — |
| 22021 Old Santa Cruz Hwy | July 2025 | $1,185,000 | 558 | $2,124 | — |
| 17741 Comanche Trl | May 2026 | $710,000 | 549 | $1,293 | — |
| 19140 Laurel Drive | July 31, 2025 | $650,000 | 525 | $1,238 | — |
| 17777 Ogallala Warpath Road | June 20, 2025 | $500,000 | 513 | $975 | — |
| 481 Woodland Ave | December 2024 | $2,250,000 | 624 | $3,606 | — |
| 21471 Lee Dr | January 2025 | $680,000 | 502 | $1,355 | — |
| 21599 Madrone Dr | October 2024 | $930,000 | 480 | $1,938 | — |
The range across nine sales — $500,000 to $2,250,000 for homes under 625 square feet — reflects how dramatically location within Los Gatos reshapes price even at the smallest end of the market.
Single-family homes across Los Gatos
There are 148 single-family homes actively listed in Los Gatos right now. The median asking price is $1,998,944. Over the last 180 days, 251 single-family homes sold at a median of $2,850,000, at a median of $1,212 per square foot. Norman Drive's $1,055 per square foot sits below both of those figures, though the more meaningful comparison is to the nine peers above rather than the broader single-family market, which skews heavily toward larger homes.
How the Los Gatos market is doing
Across all property types, 223 homes sold in Los Gatos over the last 180 days at a median price of $2,380,000 and a median of $1,160 per square foot, on a median lot of 10,388 square feet. A year earlier, over the same calendar window, 282 sales closed at a median of $2,350,000. Volume is down about 21% year over year; the median price is up about 1.3%. The market's active range runs from $355,000 to $7,800,000 across 182 listings.
What it would cost a month
At the $599,000 list price, using the national 30-year fixed average for the week of September 24, 2026, the principal and interest payment works out as follows — this is not an affordability assessment and does not include taxes, insurance, or any HOA.
Principal and interest only, on the 7.03% average 30-year rate published 2026-09-24 (Freddie Mac). Property taxes, insurance and any homeowners' dues are on top, and your own rate will depend on your lender, credit and deposit.
Tim McMullen · CA DRE #02016832
[email protected] · (415) 691-9272
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