The average home value in Gilroy, CA rose 32% over the last 6 months as compared to the same period last year (June to the end of Nov.). Homes sold for an average of $611,850 this year vs. $462,083 for the same time last year in Gilroy.
There are 3 indicators which provide some measurable reasons for this significant increase: The number of home for sale dropped from 298 in ’12 to 267 during the same 6 months this year. Classic “Supply & Demand, 101″ is in play here. The average number of days on the market dropped from 50 last year to 40 days this year. That 10% decrease suggests a robust demand. Finally, we saw asking prices and actual sale prices were virtually the same this year as well as last year; Two years now of firm sales prices.
Morgan Hill, CA has experienced similar appreciation. The South County (Morgan Hill, Gilroy, Hollister and San Juan Bautista, CA) is a favorite ‘bedroom’ community for Bay Area employees. Hollister and San Juan Bautista home values were even more stunning. I will post their reports soon.
What does this mean for home values in 2014? Probably more of the same. Do you think we’ll see the same pace? Are we headed for another bubble?
This study shows San Jose, CA as the 4th of 10 top real estate areas in the US where home values continue to increase.
Likewise, the South County communities, who supply much of the employment for the San Jose area, have been experiencing the same appreciation. Morgan Hill, Gilroy and Hollister’s home values have all risen proportionate to that of #4 in the nation, San Jose.
So, is this another inflating bubble? Will we see another bubble burst? What if the interest rates keep going up will that slow down the appreciation? What if the bank’s bulging inventory of foreclosed homes came onto the market at a faster pace than the trickle of token homes we have seen over the last 14 months?
What do you think?
Remember when we were on a road trip with the kids in the car? What was the question they always got around to? “Are we there yet?”
Nearly every day people ask me the same question relative to home values: “Are housing values at the bottom yet?” The answer varies depending the area you are asking about.
In this article Forbes provides mixed answers: homeowners in the San Francisco Bay Area may “be there”. Other places in CA and around the country, however, may have a ways to go yet before their house-value-slide ends.
San Jose was specifically listed as one of the few metro area where values seem to have leveled. This continues to be good news for Morgan Hill, Gilroy and Hollister home values. With the majority of South County residents commuting up into the Bay Area, home values in these three cities will continue to follow San Jose’s lead.
So, Johnny, we’re there – but we won’t be returning to increased values for some time to come.
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)
Not only is San Jose, CA the highest home-value-appreciation area in the US (see 2/10/11 post below), it is also the city with the happiest employees in the country. This Forbes article puts San Jose on top and San Francisco right behind it.
And, since the majority of those who live in Hollister, Gilroy, and Morgan Hill drive to the San Jose area for work we can safely assume that we are also the happiest employees in the US. Right?
After all, we have 2 of our own In-N-Out restaurants, the Gilroy Premium Outlets and 3 lakes.
Now if we could just get Hwy. 101 widened from Hwy. 152 in Gilroy to Hwy. 85 in San Jose we would all be a lot happier.
And the winner of the highest appreciation of home values in the United States is: San Jose, CA!
Of course, Morgan Hill, Gilroy and Hollister home values followed in the same direction, as they always do.
The GOOD NEWS in this article is believable when you see the actual single family home value appreciation from 2009 to 2010:
San Jose’s average single family home value ROSE 11.5%.
Morgan Hill’s average value INCREASED 4.5%.
Gilroy homes saw the values RISE 6.8%.
Homes in Hollister enjoyed a healthy JUMP of 11.3% in values!
So, those of you who have been waiting to buy a home may want to take advantage of the incrediblely low interest rates and go buy a home. Their values have come off the bottom of value slide and are beginning to increase.
You homeowners who have been waiting for values to come back so you can refinance should e-mail or call me. I will research your home’s current value for you.
2011 is going to be an exciting year – IN OUR AWESOME AREA! What do you think?
(data source: MLSListings)
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.