Gilroy, CA is not only known as the “Garlic Capital of the World” but it is also known for its robust housing market.
Using the first quarter of 2007 (1Q07) as a high point in, and the beginning of decline of market values, there are some interesting changes which point to a strong recovery:
The average number of days it took for homes to sell in 1Q07 was 141. Then, in 1Q13 it had dropped to just 36 days, and, 1Q14 days on market slipped up to an average of 45 days. Obviously, homes are again, selling much faster but the pace is slowing.
Gilroy CA’s average sales price for single family residences (SFR) in 1Q07 was an amazing $785,763! By 1Q13 prices dropped to $544,965. In the year since, the average prices continued to increase: 1Q14, the average was $605,845.
Another indicator of a recovered market is the ratio of sales price to listed price. In 1Q07 the average was 97.7%; in the first quarter of 2013 it was 98.7% and in the 1st 3 months of this year it averaged 96.2%. Again, 2014 is still improving but it seems at a slower pace.
Relatively speaking, Gilroy had the least significant drop in prices of the other South County neighbors: Morgan Hill and Hollister. Gilroy’s drop 1Q07 to 1Q13 was 30.6% while Morgan Hill’s was 32.5% and Hollister saw a 43% drop in that time frame.
So, what do you think values are going to do here in South County in the near future?