Here is yet another article which 
demonstrates that Bay Area home values have bottomed out and have continued a steady climb from there.
With little land left few homes are being built. Therefore, the varied employment opportunities which provide a fairly consistent demand for housing, are tipping the supply/demand scale in favor of firm-to-increasing values.
Natural migration for affordable housing therefore, continues to be South of the Bay Area, namely: Morgan Hill, Gilroy and Hollister. Many families are investing a slightly longer commute in order to have a desirable place for their family to enjoy.
Here is a good indicator of value: “Price per square foot“. When you look at a home’s cost/sq. ft. it quickly becomes clear - your housing dollar goes much further in our “South County” areas:
A 3 bedroom, 2 bath, 1,700 sq. ft., on a 7,000 sq. ft. lot costs:
- San Jose $303.87/sq. ft.
- Morgan Hill $247.10/sq. ft.
- Gilory $206.48/sq. ft.
- Hollister $146.71/sq. ft.
If you have been waiting to make your next housing move, I wouldn’t wait any longer. Home prices, in our area, are rising. The home loan rates are still extradordinarily low – FOR THE MOMENT. You will be disappointed if you stay with an abritary “wait for 6 months to a year” idea.
BTW: The “City Tours” tab above will provide you with video tours of each of our communities. Enjoy.
If you have wanted to refinance, you should send me an e-mail with your address. I will be happy to provide you an updated market value. Your home’s value may be high enough now to take advantage of these low rates.
(data source: MLS Listings)
If you have been waiting to buy a home, NOW is the time.
If you have been waiting to refinance your current home today is the day.
Neither these rates nor the sale prices will remain down here much longer. Some day soon the bills for “CHANGE” will come due and we’ll see the rates begin to rise.
Look at this AP article for more details.
Gilroy home values have already bounced off the bottom. Likewise, Morgan Hill and Hollister homes have seen a balance in demand and supply.
Time for your co-workers, friends and family to make their move.
What do you think?
Your home is on the market and your water heater goes out. That’s the last thing you want – spend money on something you will not get any return on.
It happened again. A seller in Morgan Hill had their home on the market. One cold morning they went to turn up the heat and found their furnace had gone out. The cost of the installed new furnace: $1,800! While they were warm again their net proceeds from the sale just dropped by a cold, $1,800.
Water heaters, microwave ovens, compactors, ovens, disposals…they all have a functional life and then give up the ghost – without warning. Those repair bills are aggravating and, unnecessary.
A Cool Solution: Home warranty policies are available for sellers as well as buyers. For roughly $.73 a day you can cover all of your major appliances during your listing period. Should something go out you only have to pay a set fee, usually around $55, and the warranty company will repair or replace your appliance for no additional cost. Click here for more information.
The payment for this warranty can be from your net proceeds in escrow. Additionally, if your home doesn’t sell some of the warranty companies won’t charge you anything. So you just can’t lose.
Selling your home can be an anxious time but this little tip will keep your equity in your pocket and provide some peace of mind.
We all know home values have dropped over the last 3 years. Will that slide continue?
Single family home values in Hollister dropped by 41.6% from 2007 to 2008. In 2009 they fell another 17.4% . Townhomes values have likewise dropped: 54.3% from 2007 to 2008 and 25.5% from 2008 to 2009.
The average sales price of Hollister homes in 2007 was $548,562. In 2008 it was $320,419, and $264,601 the average sales price for 2009.
Townhome sales show a similar pattern: their average sales price was $339,780 in 2007, $155,354 in 2008, and $115,725 in 2009.
However, it appears that the value slide has hit bottom. A closer look at 2009 average values suggests that we may have bottomed out in 9/09 and are beginning to see a rebound in both single family residence and townhome values.
Morgan Hill & Gilroy home and townhomes reflect a similar trend in values although the downward adjustments in value are more dramatic as you go south to Hollister.
(Data: MLSListings)
We have all watched the sales prices of homes drop over the last 3 years. The question is: Will that slide continue?
Single family home values in Gilroy dropped by 35.5% from 2007 to 2008. In 2009 they fell another 18.4% . Townhomes values have likewise dropped: 38.5% from 2007 to 2008 and 29.5% from 2008 to 2009.
The average sales price of Gilroy homes in 2007 was $796,676. In 2008 it was $513,913, and $419,228 was the average sales price for 2009.
Townhome sales show a similar pattern: their average sales price was $426,627 in 2007, $262,566 in 2008, and $185,070 in 2009.
However, it appears that the value slide has hit bottom. A closer look at 2009 average values suggests that we may have bottomed out in 9/09 and are beginning to see a rebound in both single family residence and townhome values.
Morgan Hill & Hollister home and townhomes reflect a similar trend in values although the downward adjustments in value are more dramatic as you go south to Hollister.
(Data: MLSListings)
Everyone knows home values have dropped over the last 3 years. Will
that slide continue?
Single family home values in Morgan Hill dropped by 17.6% from 2007 to 2008. In 2009 they fell another 18.2% . Townhomes values have likewise dropped: 26.4% from 2007 to 2008 and 18.3% from 2008 to 2009.
The average sales price of Morgan Hill homes in 2007 was $901,582. In 2008 it was $743,303, and $606,986 was the average sales price for 2009.
Townhome sales show a similar pattern: their average sales price was $493,158 in 2007, $362,976 in 2008, and $296,721 in 2009.
However, it appears that the value slide has hit bottom. A closer look at 2009 average values suggests that we may have bottomed out in 9/09 and are beginning to see a rebound in both single family residence and townhome values.
Gilroy and Hollister homes and townhomes reflect a similar trend in values although the downward adjustment is more dramatic the further south you go toward Hollister.
(Data: MLSListings)
‘Houston…the Eagle has landed’. I enjoyed recently the celebration of the Lunar landing. Let’s change the wording to fit our times: “Buyers, we’ve landed, and are now lifting off”.
Home values in San Jose, Morgan Hill, Gilroy, Hollister and San Juan Bautista “have landed” at the bottom of their value slide and are beginning to “lift off” that bottom. We are not going to see these prices again for a very, very long time, if ever again.
Here’s the affect of waiting to buy a home: A home listed today for $350,000 and goes up 5.0% in value will then be worth $367,500. A buyer who waited and then buys this home will need $985 MORE CASH and $268/mth MORE INCOME to qualify for this same home.
If the interest rate is at 6.0% (vs. the 5.0% used above) when the buyer decides to purchase this increased-value-home, their income will need to be $843/mth. HIGHER to qualify!
Some prospective home buyers may be calling out: “Houston, we’ve got a problem“. The erosion of their purchasing power may make them permanent renters.
My crystal ball recommends that those who want to buy a home climb on board NOW while they can. What does yours forcast?
If you have been waiting to buy a home in Hollister review the following sales activity and then go buy your Hollister home.
The Average Sales Price (ASP) increased 15.2% from May to June! Hollister’s ASP in June was $287,900 whereas a month earlier the average was $249,900. Compared to June 2008 however, Hollister’s ASP was down 14.7% .
A valuable indicator: the “Closed Sales to New Listings ratio” (CS:NL) is actually in conflict with the jump in ASP. June’s CS:NL ratio dropped to 56.9% from May’s 89.6%. We saw the same drop in Gilroy for June however, their ASP also dropped. The harbinger of things to come, may lie in the nice increase of Hollister’s CS:NL over 6/08’s ratio of 40.2%. Just wait and see. As our CS:NL ratio increases so will our ASP.
Nearby Morgan Hill’s homes experienced an increase in both the CS:NL ratio and ASP.
My strong advice: if you plan to buy a home this year do it now. We see nothing that suggest prices will drop or even level off in the foreseeable future. Likewise I think interest rates for home loans are about as low as they are going to get.
For your own study of the actual Multiple Listing Service figures go onto “Client Portfolio” on the navigation bar. There you can see a great deal of real-time data. Enjoy.
The Morgan Hill housing market is beginning to show some promising signs: The Closed Sales-to-New Listings-Ratio (CS:NL) rose nicely to 89.2% in June from 51.5% in May. June’s ratio nearly doubled 6/08’s of 47.2%. As you would expect Morgan Hill’s Average Sales Price (ASP) also rose in June, up 10.2% from May. However, the ASP of $614,500 is down 31.5% from last year’s average of $898,200 in June.
The best hint of what’s to come is the nice increases in CS:NL. As that indicator continues to increase the ASP is bound to go up.
Next door: Gilroy’s activity seems to be headed in the right direction. While June’s CS:NL ratio dropped slightly from May to June, June’s ratio nearly doubled over last year’s figures. The Average Gilroy Sales Price was lower in June than May by 3.8% and down 32.5% from a year ago. Stay tuned however.
As I update these ‘09 figures I predict an increase in ASP in both Morgan Hill and Gilroy.
For your own study of the actual Multiple Listing Service figures go onto “Client Portfolio” on the navigation bar. There you can see a great deal of real-time data. Enjoy.
demonstrates that Bay Area home values have bottomed out and have continued a steady climb from there. 
