Michael Walters' Blog » Market Conditions

Hollister Home Values, Turning Around

Michael Walters — Fri, 15 Jan 2010 14:07:58 +0000

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)

Gilroy Home Value Trend

Michael Walters — Thu, 14 Jan 2010 16:25:21 +0000

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)

BUYERS! Get on Board!

Michael Walters — Thu, 20 Aug 2009 21:15:32 +0000

‘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?

Hollister’s 151% Jump in Closings

Michael Walters — Sun, 28 Jun 2009 18:07:54 +0000

Hollister’s housing is HOT! Last month (5/09) saw 27 more Closings than 5/08’s 33. That is an increase of 81.8%! Each month this year our number of Closings has leaped ahead of ’08’s. To date there has been a 151% increase in Closed Sales! In fact, try to buy a home in Hollister now. “Multiple Offers” is once again a standard phrase reported to buyers by their agents.

Contributing to this hot market: New Listings of homes for sale in Hollister are down 27.9% so far this year over last year. Last month alone we saw a drop in New Listings of 29.5% over 5/08.

The Gilroy housing market is experiencing a similar recovery with a 128.9% increase in closings and a 32.7% decrease in New Listings.

Make sure your Realtor knows all the current methods in getting an offer accepted. You are going to need that if you want to buy a home here in Hollister.

Gilroy Home Sales Rise 128%

Michael Walters — Sun, 28 Jun 2009 17:48:05 +0000

If you have thought about buying a home in Gilroy, it’s time to act! May’s Closed Sales were up 75.8% over 5/08! This is the 5th straight month of increased Closings over the same period last year. Year-to-date Gilroy Closings are up a whopping 128.9% over the first 5 months in ‘08!

The supply of homes listed for sale dropped 75.8% in May and was the 5th consecitive month this year where New Listings dropped. So far this year our Gilroy New Listings are down 32.7% from last year.

Similarly, Morgan Hill’s Closed Sales are up 59.4% and the number of New Listings is down 23.5% from 2008.

While the price levels and home loan interest rates are still low NOW is the time to come join us in the “Garlic Capital of the World” and buy your own home.

Morgan Hill Housing Recovery

Michael Walters — Sun, 28 Jun 2009 17:14:28 +0000

Have you noticed Morgan Hill’s housing activity? Wow! Recovery is well underway in our quaint town. In May there were 73.6% more Closings than in May ‘08. This is the 5th straight month this year where our Closings have increased over last year’s figures. To date, Closings have increased nearly 60% (59.4%)!

On the other hand New Listings of Morgan Hill homes for sale were down for the 5th straight month. The number of May’s New Listings were down 55.4% vs. 5/08 and year-to-date the drop totals 23.5% over the same period last year!

In nearby Gilroy the same housing trends are happening! Gilroy’s number of Closed Sales is up 128% from 2008! 128%! Wow! Our New Listings were lower by 27.9%.

The affects of ‘Supply and Demand‘ are being felt here in Morgan Hill and Gilroy. While the interest rates are still wonderfully low I wouldn’t wait to buy.