How is the Morgan Hill real estate market? Signals indicate it’s still cooling. Overall the wild extremes of last spring are no more, but it remains an active market with strong demand. Below are some quick points from our RE Report (link below).
- The average sale price for houses in October was $1,359,890 (-17.1% from the month before and -14.6% from a year ago)
- The median sale price for single family homes was $1,225,000 (-21.0% the month prior and -15.8% from this time last year)
- The sales to list price ratio for homes remained relatively stable, rising to 98.6% (+0.1% from the month before and -5.7% from last year).
- Days on market sped up month-over-month, averaging in at just under a month, and are taking much longer to sell than last year.
Prices are down, but inventory is also falling and the market remains active. It’s still a seller’s market with competition for the best homes and a much calmer market (and an opportunity for buyers) with the outliers.
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 are usually a bit less in demand than parts of Santa Clara County which are either tech magnets or closer to these big businesses. So if most of the Silicon Valley has a sale price to list price ratio of anywhere from 100% to 105%, it’s generally lower here, making the home buying conditions calmer for weary buyers, though still a sellers market. With so much pent-up demand, and possibly with buyers being priced out of other areas, this market has been showing significantly more heat than usual, but it has also been calming down a little more quickly than some other areas.
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.
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, to see more click on this link to see the Real Estate Report for Morgan Hill.
October demand remained high with mixed signals and signs of cooling in the market. That said, the cooling trend has evened out from it’s sharpest drops, and while prices are still falling we saw an uptick in closed sales and slight warmth in the sale to list price ratio and days on market. Looking year-over-year, the market is significantly colder than it was in 2021, in every possible datapoint!
|Trends At a Glance||Oct 2022||Previous Month||Year-over-Year|
|Median Price||$1,225,000 (-21.0%)||$1,550,000||$1,455,000 (-15.8%)|
|Average Price||$1,359,890 (-17.1%)||$1,639,490||$1,591,830 (-14.6%)|
|No. of Sales||33 (+6.5%)||31||47 (-29.8%)|
|Pending||44 (-24.1%)||58||59 (-25.4%)|
|Active||38 (-13.6%)||44||33 (+15.2%)|
|Sale vs. List Price||98.6% (+0.1%)||98.5%||104.6% (-5.7%)|
|Days on Market||29 (-10.9%)||33||19 (+57.2%)|
|Days of Inventory||35 (-16.1%)||41||21 (+64.0%)|
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, it’s still extremely low compared to most years! As always, low inventory + high demand = high or rising prices. Demand is cooling off some due to rising interest rates, but that appears to be translating into fewer offers and lower sales prices, but not significantly fewer sales.
It should be noted that there’s a ton of new construction going on in the northern part of Morgan Hill, but that hasn’t appeared to be helping a severe inventory shortage!
Real estate market for condominiums and townhouses in Morgan Hill
Morgan Hill condos and townhomes are showing a hot market with the same market action as single family homes, according to the Altos Reports. This can fluctuate dramatically with such small numbers, so take it with a grain of salt.
Trends for the condo real estate market in Morgan Hill
See the full Real Estate Report here. With just 5 sales in October and only 7 in September making up most of the data, take these statistics with a grain of salt! While closed sales fell month-over-month in Morgan Hill’s condo and townhome market, pending sales are up and it’s looking relatively stable compared with September and possibly a hair warmer. That said, it’s nowhere near as hot as it was a year ago. Prices appear to be rising again, however that could have more to do with the type of property selling rather than a change in market value, especially when there are so few sales. Fewer sales and increasing inventory may make this a great opportunity for buyers!
|Trends At a Glance||Oct 2022||Previous Month||Year-over-Year|
|Median Price||$912,000 (+4.8%)||$870,000||$770,000 (+18.4%)|
|Average Price||$930,360 (+7.6%)||$864,555||$797,400 (+16.7%)|
|No. of Sales||5 (-28.6%)||7||15 (-66.7%)|
|Pending||6 (+50.0%)||4||6 (0.0%)|
|Active||12 (+9.1%)||11||3 (+300.0%)|
|Sale vs. List Price||99.8% (+1.2%)||98.6%||102.6% (-2.7%)|
|Days on Market||29 (-9.4%)||32||20 (+43.6%)|
|Days of Inventory||72 (+58.0%)||46||6 (+1,100.0%)|
Condo and Townhouse Live charts from Altos Research
The Morgan Hill condo market
List prices by quartile:
Average days on market:
This jumps all over the place, but most price points have converged on roughly 30-50 days on market. Remember to disregard data from March to May 2020.
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.