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.

This was a much more active week in the South County than last week.  Twelve more homes went to pending status than last week for a total of 43 sales!  Of these sales, three were condo/townhouses and the remainder were single family residences.

Of these 43 sales, the lsit price ranges were as follows:

$200,000 - $500,000 = 23 sales

$500,000 - $800,000 = 9 sales

$800,000 - $1,200,000 = 7 sales

$1,200,000 - $2,000,000 = 4 sales

Tune in next week for an update on the number of sales in South Santa Clara County!

Sales are down from the previous week but still much healthier than they were early in 2008.  In the towns of Morgan Hill, San Martin and Gilroy, there were a total of 31 listings that went under contract last week.

 Of these 31 sales, the list price ranges were as follows:

$200,000 - $500,000 = 18 sales

$500,000 - $800,000 = 7 sales

$800,000 - $1,200,000 = 3 sales

$1,200,000 - $2,000,000 = 3 sales

Well, there is good news to report here in the South County - finally!  In Morgan Hill, San Martin and Gilroy, the number of active listings is down from last month, sales are up and average sale prices have inched up as well.  Looks like we’re in the middle of the summer buying season and buyers are seeing deals too good to pass up!

In those three Santa Clara County cities, the current inventory of single family homes was down to 889 at the end of June as compared to 908 at the end of May.  Still high, but at least it is going in the correct direction.  And the big news is that there were 95 sales in June which is quite a jump from May’s paltry 57!  The average sale price in the south county for June was $702,810 versus $674,717 in May.  The only number that didn’t go in the direction wished for is cumulative days on market, or CDOM.  This rose to 121 days in June from 118 days in May.

From the volume of sales that have occurred already this month, I think July will be a great month as well here in the South County!

 

The seller sets the price of the home but ultimately the buyer determines the value. My job is to supply you, the seller, with facts about what has sold recently and what is for sale now. This information will help you make a  decision on pricing your home. There are five essential ingredients that comprise the formula for a successful sale of your home:

• Marketing:  Multiple Listing Service, internet exposure, yard signs, advertising, etc.
• Location: Views, neighborhood, schools, traffic, accessibility, etc.
• Condition: Maintenance and amenities
• Market: Competition, economy, interest rates, mortgage availability
• Price: The #1 most important factor in the sale of your home

The consequences of improper pricing are painful.  Too low and you literally give away money that should have been in your pocket.  Too high and your home will sit unsold for months, developing a reputation of a problem property.

Remember:

• What you paid for your property does not affect it value.
• The amount of money that you need to get out of the sale of your property does not affect its value.
• What you think it should be worth has no affect on value.
• What your neighbor says your property is worth does not affect it value.
• An appraisal does not always indicate what your property is worth on the open market.

What does determine the value of your property?  The value of your property is determined by what a qualified, informed, ready, willing and able buyer will pay for it.

Benefits of Proper Pricing

• Faster sale:  The proper price gets a faster sale, which means you save on mortgage payments, real estate taxes, insurance and other carrying costs.
• Less inconvenience:  As you may know, it takes time and energy to prepare your home for showings, keep the property clean, make arrangements for children and pets, and generally alter your lifestyle.  Proper pricing shortens market time.
• Increased salesperson response:  When Realtors are excited about a property and its price, they make special efforts to contact all their potential buyers and show the property whenever possible.
• Exposure to more prospects:  Pricing at market value will open your home up to more people who can afford it.
• Better response from advertising:  Buyer inquiry calls are more readily converted into showing appointments when the price is not a deterrent.
• Higher offers:  When a property is priced right, buyers are much less likely to make a low offer, for fear of losing out on a great value.
• More money to sellers:  When a property is priced right, the excitement of the market produces a higher sales price in less time.  You net more due to the higher sales price and lower carrying costs.

Here in the south Santa Clara County area consisting of Morgan Hill, Gilroy and San Martin, pending sales have risen as Spring progesses.  In January of 2008, we had 56 single family residences (sfr) go under contract.  In February, 2008, 68 went under contract.  In March, 2008, 80 went under contract and in April, 2008, 123 went under contract which is a signifcant rise.

There are currently 825 sfr active listings in the south county area with 140 sales pending under contract.

For the month of April, 2008, the cumulative days on market (CDOM) is 116 compared to 92 from April of last year.

The average selling price in April for the south county is $607,283 which is a 30% drop from April of last year’s average of $868,560.

The median selling price in April for the south county is $605,777 which is a 25% drop from April of last year’s median of $807,345.  I always feel the median price is a more accurate picture of what is happening in the market than the average price because it is easy to skew the average when a very expensive home sells.

These statistics were obtained from pro.mlslistings.com.

Gretchen Merrick Phone:408-892-9015 gmerrick@interorealestate.com Featured Listings 16830 Edwin Jones Court Morgan Hill, CA 4 BR | 3 BA $749,000 More Details 16771 Dry Creek Ct Morgan Hill, CA 5 BR | 3.50 BA $749,000 More Details 16868 De Witt Ave Morgan Hill, CA 6 BR | 4.50 BA $849,999 More Details

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