The average home value in Morgan Hill, CA rose 27% over the last 6 months as compared to the same period last year (May to the end of Oct.). Homes sold for an average of $771,641 this year vs. $609,669 for the same time last year in Morgan Hill.
There are 3 indicators which provide some measurable reasons for this significant increase: The number of home for sale dropped from 282 in ’12 to 212 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 64 last year to 35 days this year. That 45% decrease suggests a robust demand. Finally, we saw asking prices and actual sale prices were virtually the same so far this year whereas, last year the recorded prices were 92% of the listed price.
Gilroy, 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?
(data from MLSListings)