How is the Morgan Hill real estate market? Signals indicate it is a seller’s market, though it’s notably milder than other parts of the county. Below are some quick points from our RE Report (link below).

• Available inventory lept up from the month before, just a hair short of this time last year for single family homes (SFH). In the condo and townhome market, it held steady month-to-month, a little above last year.
• Closed sales rose while pending sales fell month-over-month and year-over-year for SFH. For condos and townhomes, pending sales barely grew and closed sales dropped below last month, with both closed and pendings down from last year.
• The average sale to list price ratio slipped in SFH but rose in the condo market from the month before, however both markets were up from this time last year.
• Days on market and market absorption slowed significantly across both markets. While single family homes took under a month on average to sell, condos and townhomes took more than 2 months to sell on average, a clear indicator of the difference in activity between the two markets.

It’s a mild seller’s market that kicked off summer with a bit of a heat wave that’s now cooling off. There’s competition for the best homes in Morgan Hill, but possibly a buyer’s market in other sectors. As always, it’s important to analyze homes on a case by case basis.

See the Santa Clara County real estate market report (for comparison) here.

The Morgan Hill Real Estate Market

The cities of Morgan Hill and Gilroy usually experience a lower demand than other parts of Santa Clara County which are either tech magnets, closer to big businesses, or a quicker commute around the Bay Area. So if most of the Silicon Valley has a sale price to list price ratio of anywhere from 105% to 110%, you might see closer to 97% to 103% here. Not exact numbers, just to say it’s generally lower here making the home buying conditions calmer for weary buyers, even if it is still a sellers market.

Now let’s get into the data.

First up, the market profile from Altos Research – this is updated weekly, so check back often! You can also view the weekly newsletter through the link below, where you can also subscribe to receive this update every week in your inbox. Prefer a particular zip code instead? You can type in your desired zip in the “Search Anywhere” line and then request that particular weekly update by email.

Altos Research weekly report for all of Morgan Hill

Altos weekly report for 95037 only

Altos weekly report for 95038 only

Please note that Altos uses information on actively listed homes for sale, not closed sale data. If you compare the days on market of the active listings with the days on market of the sold properties, they will be different.

Trends at a Glance for Single Family Homes in Morgan Hill

Below is a chart with basic info from the RE Report, which we carry subscription to use. To see more click on this link to see the Real Estate Report for Morgan Hill.

Month-over-month, the July market shows signs of cooling – with more homes available, buyer competition has eased up a bit. There may be more or less competition in certain segments of the market, but overall it’s a mild seller’s market with more opportunity for the weary homebuyer to get their foot in the door.

Trends at a Glance

Trends At a Glance	Jul 2026	Previous Month	Year-over-Year
Median Price	$1,432,000 (-18.2%)	$1,750,000	$1,450,000 (-1.2%)
Average Price	$1,574,660 (-20.0%)	$1,968,970	$1,666,600 (-5.5%)
No. of Sales	35 (+6.1%)	33	29 (+20.7%)
Pending	27 (-27.0%)	37	45 (-40.0%)
Active	73 (+25.9%)	58	74 (-1.4%)
Sale vs. List Price	100.3% (-1.0%)	101.3%	99.9% (+0.4%)
Days on Market	27 (+63.7%)	16	29 (-7.6%)
Days of Inventory	63 (+22.8%)	51	77 (-18.3%)

 

Single Family Home Live charts from Altos Research

The following charts are from Altos Research, updated automatically each week, using data of homes available to purchase (not sold / closed sales), for the Morgan Hill real estate market. (I have a paid subscription to this service.)

 

Morgan Hill houses for sale average days on market:

 

Inventory of single family homes available to purchase:

While inventory had been on the rise over the last couple of years, it is still far below “normal” levels. As always, low inventory + high demand = high or rising prices.

It should be noted that there’s a ton of new construction going on in the northern part of Morgan Hill, and while we may be seeing a slight uptick from that it hasn’t appeared to be having a significant impact on the severe inventory shortage in recent years, though it may be helping some.

 

Trends for the condo real estate market in Morgan Hill

 

See the full Real Estate Report here. With so few sales, a single out-of-the-ordinary listing could throw the whole chart out of whack! So take this data with a pound of salt.

With so few sales, major swings in the data happen frequently without being an indicator of overall market shifts. While the current data suggests this sector is either balanced or leaning slightly in the seller’s favor, that may not be the case for every condo and townhome when you look at the micro markets. One thing is crystal clear – the condo and townhome market is far less active than the single family market.

Trends at a Glance

Trends At a Glance	Jul 2026	Previous Month	Year-over-Year
Median Price	$673,600 (-6.7%)	$722,000	$849,500 (-20.7%)
Average Price	$743,050 (-1.1%)	$751,333	$838,000 (-11.3%)
No. of Sales	6 (-33.3%)	9	8 (-25.0%)
Pending	10 (+11.1%)	9	11 (-9.1%)
Active	27 (0.0%)	27	23 (+17.4%)
Sale vs. List Price	99.9% (+0.3%)	99.6%	97.4% (+2.5%)
Days on Market	72 (+168.1%)	27	56 (+26.8%)
Days of Inventory	135 (+55.2%)	87	86 (+56.5%)

 

Condo and Townhouse Live charts from Altos Research

The Morgan Hill condo market

List prices by quartile:

 

Average days on market:

 

Inventory:

 

Want to buy or sell a home in Morgan Hill? It’s a great community and I work there, too!  Please contact me for a no obligation, no cost, no pressure conversation to discuss your goals and how I may be able to assist you.