Just How Far Did South County Home Prices Fall?

reduced-price-sign.jpg   I’ve had several clients and friends recently ask me just what, exactly, have home prices been doing in south Santa Clara County since they peaked.  And, by the way, just when did they peak?  To answer that question, I turned to MLSListings Pro where Realtors go to look at the Multiple Listing Service.

Here’s what I found for Morgan Hill:  Morgan Hill’s average home sale price peaked in September, 2006 at $1,091,144.  The average sale price for the year of 2006 was $945,240.  The average sold home price in 2007 didn’t dip too drastically, but did fall 5% to $901,582.  Our most recent data for 2008 through the third quarter shows an average sale price of $767,900.

For Morgan Hill, that is a total drop in average home sale prices from the year of 2006 to the end of the third quarter in 2008 of 19%.

And for Gilroy, the statistics look a little gloomier:  Gilroy’s average home sale price peaked in the year 2006 with an overall average sale price for single family homes of $800,620 for that year.  The average sale price for a Gilroy home in 2007 barely moved from the previous year and was $796,676.  But through the third quarter of this year, the average sale price for 2008 is $565,278.

For Gilroy, that is a total drop in average home sale prices from the year of 2006 to the end of the third quarter in 2008 of 30%.

Gilroy has been particularly hard hit with foreclosures and short sales and those “distressed” listings seem to be what is selling there, so of course, that will drag down the average sale price for the city.  If you live in Gilroy and you want to know how much your home may be worth now, don’t just automatically take 30% off what you think your house was worth in 2006.  Each house is still valued individually and there are many factors that make up its worth.  Call me for a thorough, in-depth market analysis if you are considering selling your home.