What’s Happening to Sales Prices in South County?
Date: Monday September 28, 2009Posted in: real estate, Morgan Hill, San Martin, Gilroy, pricing, sale price
What’s been the trend in sales prices for south Santa Clara County real estate? I’ll break it down by city looking at detached single family residences:
Morgan Hill median Sold Prices, down 31% August ‘08 vs. August ‘09:
Gilroy median Sold Prices August ‘08 vs. August ‘09 down 9%:
San Martin median Sold Prices, down 58% August ‘08 vs. August ‘09:
South County Sales Week of November 12 - 18, 2008
Date: Wednesday November 19, 2008Posted in: real estate market, real estate, Santa Clara County, Morgan Hill, South Santa Clara County, San Martin, Gilroy, statistics, pending sales, pricing, Morgan Hill Real Estate, Gilroy real estate
Quite a jump in sales last week in the south Santa Clara County area of Morgan Hill, San Martin and Gilroy - especially considering that it is mid November! There were 38 residences that went from active to pending status. Of these, 36 were single family homes and 2 were condo/townhouses.
Of these sales, the list price ranges were:
Below $200,000 = 1 sale (3% of total)
$200,000 - $500,000 = 26 sales (68% of total)
$500,000 - $800,000 = 8 sales (21% of total)
$800,000 - $1,200,000 = 2 sales (5% of total)
$1,200,000 - $2,000,000 = 1 sale (3% of total)
As of November 18, 2008, there are 719 residential listings active on the market in the Morgan Hill, San Martin, Gilroy area, and 228 pending residential listings. Therefore, 24% of the listings are pending under contract as of this date.
Tune in next week for an update on the number of sales in South Santa Clara County!
Just How Far Did South County Home Prices Fall?
Date: Tuesday November 18, 2008Posted in: price, real estate, short sale, foreclosures, Santa Clara County, Morgan Hill, South Santa Clara County, Gilroy, MLS, statistics, housing market, pricing, average price, home selling, Morgan Hill Real Estate, Gilroy real estate
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.
South Santa Clara County Real Estate Statistics
Date: Tuesday July 8, 2008Posted in: real estate market, price, real estate, Morgan Hill, South Santa Clara County, San Martin, Gilroy, statistics, housing market, pricing, average price, housing inventory
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!
Chasing that Elusive Downwardly Adjusting Market
Date: Saturday June 28, 2008Posted in: real estate, multiple offers, listings, housing market, pricing, list price
In conversations with home sellers here in south Santa Clara County, it is important to remind them of the potential of loss in equity in this downwardly adjusting real estate market. Sellers still want to “test the market” by pricing their homes a little higher than the latest comparables are indicating that they should be priced. After the “test” confirms that they are priced too high, they will then lower their list price. This is called “chasing the market down.” Every day a seller chases the market, they may be losing equity.
An important concept to understand in this type of real estate market is that the most competitive price often sells first. The seller who sells first is the seller who jumps the market and is the most competitively priced. That seller receives the highest possible price at that point in time.
The homes that are selling quickly in south Santa Clara County are the homes that attract the attention of buyers and Realtors alike due to their aggressive pricing. These homes are receiving multiple offers and often are selling for over list price. The sellers in these cases sell early during the adjusting market and have more options later. They can stop chasing and relax.
What is Your Home Worth?
Date: Wednesday June 18, 2008Posted in: Sellers, price, real estate, listings, housing market, pricing
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.
