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?

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)

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 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.

I

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.

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.