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?