The average home value in Hollister, CA rose 36% 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 $421,798 this year vs. $316,894 for the same time last year in Hollister.
There are 3 indicators which provide some measurable reasons for this significant increase:
- The number of home for sale dropped from 323 in ’12 to 283 during the same 6 months this year.
- The average number of days on the market dropped from 54 last year to 44 days this year. That 19% decrease suggests a robust demand.
- Finally, the actual sale price was 102% of the asking price in the last 6 month where last year’s relationship of “asking and actual” was 99%.
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. Gilroy & Morgan Hill home values were just as impressive.
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? Watch the home loan interest rates. Their direction will have an inverse affect on the rate of appreciation: if they go up significantly or, quickly, all 3 factors above should head in their opposite direction. The rate of appreciation will slow or stop – depending on the severity of the rate changes. Stay tuned. It’s going to be exciting!
(data from MLSListings)