Hollister, CA Home Values Up 36%

home's appreciationThe 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:

  1. The number of home for sale dropped from 323 in ’12 to 283 during the same 6 months this year.
  2. 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.
  3. 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)

 

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Gilroy, CA Home Values UP 32%

4954639852_42897c0ca11The 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?

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Morgan Hill Home Values UP 27%

house value up graphThe 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)

 

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Refinance…Rates Are Headed North

Home loan interest rates have risen over the last week.  We have enjoyed rates in the  “3’s” for the last several   months.  Today, however, we are nudging up against 4.0%.  The impact on home loan payments, and qualifying is really surprising! Here, for example, is the affect on a $300,000 fixed rate, fully amortized loan that went up .5% from 3.5 to 4.0%:

4.0%                                       $1,432.25/ mth
3.5%                                      – 1,347.13/ mth
Increase:                                    $85.12 every month
Increase in income to qualify:  $224/ mth

4.5%                                      $1,520.06/ mth
3.5%                                      – 1,347.13/ mth
Increase:                                 $172.93 every month
Increase in income to qualify:     $455/ mth

So, will the interest rates go up further?  How much?  How fast?  What do you think?  This is not a time to ponder.  It’s a time to pursue! Why not text or email me your current: Loan Balance, Principle & Interest payment, and interest rate.  Or, you could just email me a copy of your current home loan statement.  I will send back to you how much a refinance will save you each month.

(APR for 3.5%: 3.875%, 4.0%s APR: 4.374%, APR for 4.5%: 4.873%)

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Housing Values At The Bottom Yet?

Remember when we were on a road trip with the kids in the car?  What was the question they always got around to?  “Are we there yet?”

Nearly every day people ask me the same question relative to home values: “Are housing values at the bottom yet?”  The answer varies depending the area you are asking about.

In this article Forbes provides mixed answers:  homeowners in the San Francisco Bay Area may “be there”.  Other places in CA and around the country, however, may have a ways to go yet before their house-value-slide ends.

San Jose was specifically listed as one of the few metro area where values seem to have leveled.  This continues to be good news for Morgan Hill, Gilroy and Hollister home values.  With the majority of South County residents commuting up into the Bay Area, home values in these three cities will continue to follow San Jose’s lead.

So, Johnny, we’re there –  but we won’t be returning to increased values for some time to come.

Manufactured Homes: Good Investment?

The term: “Manufactured home”  includes two types of homes: Mobile Home and a Modular Home

Mobile homes are delivered to the sight on their own axles and wheels and generally have the wheels remain in tact.  It is not real property and you pay the DMV vehicle taxes on it.

Modular homes are pre-built homes which are delivered to the lot on flatbed trucks, hoisted onto a permanent foundation and bolted down.  Therefore the Modular home becomes ‘real property’ because it is affixed to the land.  You pay regular property taxes on a Modular home, according to Prop. 13, as you would on regular, or, “stick-built” homes.

The value of the Mobile home is generally less than that of a Modular home.  Financing of such a home is not nearly as attractive as that of a Modular home.  There tends to be fewer lenders wiling to lend on a Modular home than a traditional “stick-built” home. However, those that do, typically offer comparable rates and fees to that of traditional homes.

We (under my “Community West Mortgage hat”) are one of those lenders who lend on Modular homes.  Why not call or e-mail me for more details?

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INCREASING Home Values! Here!

And the winner of the highest appreciation of home values in the United States is: San Jose, CA!

Of course, Morgan Hill, Gilroy and Hollister home values followed in the same direction, as they always do.

The GOOD NEWS in this article is believable when you see the actual single family home value appreciation from 2009 to 2010:

San Jose’s average single family home value ROSE 11.5%.

Morgan Hill’s average value INCREASED 4.5%.

Gilroy homes saw the values RISE 6.8%.

Homes in Hollister enjoyed a healthy JUMP of 11.3% in values!

So, those of you who have been waiting to buy a home may want to take advantage of the incrediblely low interest rates and go buy a home.  Their values have come off the bottom of value slide and are beginning to increase.

You homeowners who have been waiting for values to come back so you can refinance should e-mail or call me.  I will research your home’s current value for you.

2011 is going to be an exciting year – IN OUR AWESOME AREA!  What do you think?

(data source: MLSListings)

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YOUR Vote DOES Count!

If you have moved since the last election you need to re-register to be able to vote.  Even if you only moved across the street you still need to re- register before you can vote.  Obviously, if you have not registered before in order to vote on 11/2/2010 you will need to register.

In California, the dead line for registering is 10/18/2010.

It is easy to register.  Simply go here and register on line.  Or, you can go to the Registrar of Voters office in your city or county and register there. You may also be able to register at your nearest DMV – good luck on anything happening quickly in there however.

This mid-term election is probably the most important one we’ll see in a long time. Please make sure to register.  Then, study the issues and candidates, encourage your family, friends and neighbors to do the same.  Don’t forget to vote.

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Hollister Home Values, Turning Around

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)

Gilroy Home Value Trend

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)